Norske Skog Australasia, a subsidiary of $2.2 billion global pulp and paper Norske Skog of Norway, was contending with new price pressure and competition from Asian newsprint suppliers. To help meet aggressive cost-reduction and shareholder-return targets in this environment, the company wanted to improve the management of its supplier and customer relationships, and reduce duplication across its supply chain.
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Accenture worked with Norske Skog Australasia to develop a strategy that would address:
This work included an extensive value-chain diagnostic that examined operations from customers back through mills and fiber suppliers—as well as the critical context of competitors and market forces.
The effort identified short-term supply chain annual cost reductions of 17m AUD, as well as long-term opportunities to reduce redundant assets and rationalize product flow. In addition, an improved understanding of the value-delivery system, the "cost to serve" customers, and the competitive landscape positioned Norske Skog Australasia to develop value propositions and negotiating strategies for individual customers—which in turn will help improve customer relationships, market share and margins.
Said David Kirk, President of Norske Skog Australasia: "The key to the long-term benefit resulting from the work was its integrated nature. Customer value propositions drove network optimization, with both being anchored in the competitive environment we face."