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THE IMPORTANCE OF BEING DIFFERENT: SCM is the key to service excellence at Pasadena Paper


April 1, 2000
By Pulp & Paper Canada

Pasadena Paper Company, the former Simpson Paper mill in Pasadena, TX, was purchased in January 1999 by Belgravia Investments. Following the purchase, Pasadena Paper implemented an integrated mill sys…

Pasadena Paper Company, the former Simpson Paper mill in Pasadena, TX, was purchased in January 1999 by Belgravia Investments. Following the purchase, Pasadena Paper implemented an integrated mill system solution that combines Computronix’s Millworks Customer Service software with the Product Tracking System (PTS) from ABB’s Pulp & Paper MES group.

This decision was driven by the company’s desire to maintain its position in the C1S label and C2S coated paper markets. Pasadena Paper continually works to improve the quality of its product and to implement supply chain management programs that add value to its customers’ business. Pasadena Paper prefers working strategically with customers that will partner with them to implement mutually beneficial SCM initiatives. The SCM focus distinguishes Pasadena Paper in the marketplace as a vendor focused on customer service excellence.

Kevin Luc, Pasadena Paper’s supply chain coordinator, is responsible for identifying partner opportunities and for working with customers and cross-functional teams at the mill to implement SCM programs that add business value. Once implemented, SCM strategies are measured by the partners and continually improved.

“Since the mill’s acquisition by Belgravia, we’ve become more focused on supply chain management principles and have worked hard to grow the number of supply chain links with our customers and suppliers,” said Luc.

“We’ve recognized that supply chain management can really differentiate us and our products in the marketplace. At the same time, it helps us manage costs and build successful relationships with our customers and even our customer’s customers. It’s an integral part of our success.”

In the past, the mill relied on inventory as a way to attract and retain business. However, the company found this strategy difficult to manage and expensive.

“We came to the conclusion that anyone could build inventory. We wanted to earn business differently — by making a superior paper product and delivering exceptional customer service,” Luc added. “Our service strategy is founded on supply chain management principles.”

Pasadena Paper has implemented vendor-owned and managed inventory programs with several of its strategic customers. In the near future, its supply chain programs will be expanded to include more links of the chain, from suppliers to end-users.

Automated systems are used to help manage vendor-owned inventory, often kept at the customer’s site. Using EDI, customers forward on-hand inventory and month-to-date sales information to the mill. This information is processed against current customer orders, scheduled replenishments and on-hand inventory maintained in the Millworks and PTS systems.

Using SCM parameters such as safety stock, manufacturing lead time, customer order patterns and demand forecasts, a replenishment scenario is developed and entered into the Millworks system. It is then automatically passed to PTS for scheduling, manufacturing and shipping. The vendor-owned inventory is replenished — often the same day — and the customer’s paper supply is kept at optimum levels.

“Our goal is to match our customer’s paper supply to their demand to the extent that they never need to worry about it — it’s there in the right quantity when they need it,” stated Luc. “Supply chain management has been a win-win for us and our customers.”


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