GTM Implementation in UPM Including Sanctions Data Interface with Descartes
-
Upload
prasad-chandane -
Category
Technology
-
view
317 -
download
2
Transcript of GTM Implementation in UPM Including Sanctions Data Interface with Descartes
GTM implementation in UPM
including sanctions data interface
with DescartesAntti Vehkala – IT Service Owner Logistics
UPM
CONTENT
• UPM – The Biofore company
• History of OTM / GTM in UPM
• GTM usage in UPM
• Q&A
| © UPM
UPM TODAY
Turnover 2014: EUR 9,9 billion
Personnel: 21 000
Shareowners: over 90 000
• Plywood products
UPM Plywood
• Label materials for product and information labeling
UPM Raflatac
• Magazine papers in Europe and the USA
• Newsprint and fine papers in Europe
UPM Paper ENA
• Fine papers in China• Label papers
globally
UPM Paper Asia
• Hydro-, nuclear- and condensing power (incl. shares in energy companies)
• Electricity production and trading
UPM Energy
• Pulp• Plantations• Biofuels• Sawmills
UPM Biorefining
UPM Biocomposites
UPM Biochemicals
| © UPM
IN BRIEF
UPM – The Biofore Company
Public4 24 February 2014
UPM Biorefining UPM Biorefining consists of pulp, timber and biofuels businesses and
plantation operations. UPM has four modern pulp mills in Finland and Uruguay and four sawmills
in Finland. UPM‘s biorefinery for producing wood-based renewable diesel will start up in summer
2014 in Finland. The main pulp customers are producers of tissue, speciality papers and board as
well as the oil and petrochemicals industry for biofuels Timber customers are construction,
joinery and furniture industries. UPM aims to grow as a reliable pulp supplier and seeks growth
in advanced biofuels.
UPM Energy generates cost competitive low emission energy and operates in physical and
derivatives trading on the Nordic and Central European energy markets. UPM’s energy generation
capacity consists of hydropower, nuclear power, condensing power and wind power.
UPM Energy aims to grow on the Nordic CO2 emission-free energy market.
UPM Raflatac manufactures self-adhesive label materials for product and information
labelling for label printers and brand owners in the food, personal care, pharmaceutical and retail
segments, for example. UPM Raflatac is the second-largest producer of self-adhesive label
materials worldwide. UPM Raflatac aims to advance in growth markets and strengthen its position
in specialty labelstock products.
Our products are made of renewable raw materials and are recyclable. With our new business structure we will drive transformation and seek to further develop our business portfolio.
| © UPM
UPM Paper Asia serves growing markets with fine papers in Asia and labelling materials
globally. The operations consists of the UPM Changshu paper mill in China and labelling and
packaging materials production lines at the UPM Tervasaari and UPM Jämsänkoski mills in Finland.
The main customers are retailers, printers, publishers, distributors and paper converters.
UPM Paper Asia seeks growth in office papers in China and the Asia-Pacific region, and in labelling
materials worldwide.
UPM Paper ENA (Europe and North America) produces magazine paper, newsprint and
fine papers for a wide range of end uses in 18 modern paper mills in Europe and the United States.
The main customers are publishers, retailers, printers and distributors. UPM has a global paper
sales network and an efficient logistics system. UPM Paper ENA focuses on cost leadership and
improved profitability to secure cash flow.
UPM Plywood offers plywood and veneer products, mainly for construction, transport and
other manufacturing industries. UPM is the leading plywood supplier in Europe, with production
in Finland, Estonia and Russia. UPM Plywood aims to improve profitability and the value offering
and service packages for selected end-use customers.
Other
operations
Wood Sourcing and Forestry secures competitive wood and biomass for all UPM businesses using
wood and manages UPM-owned forests. In addition, UPM offers a wide range of wood trade and
forestry services to forest owners and forest investors. UPM Biocomposites and UPM Biochemicals
units are also included in Other operations.
IN BRIEF
UPM – The Biofore Company
Public5 24 February 2014
| © UPM
SALES NETWORK AND PRODUCTION
PLANTS
65 production plants in 15 countries:
- Europe: 55
- USA 5
- Brazil 1
- Uruguay 1
- China 2
- Australia 1
- Malaysia 1
- South-Africa 1
Global sales network
HISTORY OF OTM & GTM IN UPM
OTM & GTM IN UPM –
ENABLER OF CHANGE
- 2005 Local logistics
systems with local processes
2005-2010Global OTM
implementation
2010-2012Harmonizing organization
and processes
2012 -Optimizing Processes
2005-2009Paper
products
2010Non-Paper products
2012-2013Integration of
Myllykoski Paper
2012 GTM implementation
2013 Biofuels
integration
2015 GTM Descartes
integration
BUSINESS DRIVERS FOR
GTM IMPLEMENTATION
• Following business drivers triggered sanctions party screening project in UPM and have since been turned to benefits:• Risk mitigation
– Ensure cargo is moving without unexpected delays – Demurrage avoidance
– KYC and compliance with sanctions regimes
• AEO Certificate application for UPM
• German Customs Authority had set sanction party screening as prerequisite for electronic export clearance
• Fully automatic screening solution was needed because huge amount of trading partners
• All ad hoc screening solutions and manual option were immediately ruled out
GTM IMPLEMENTATION AND USAGE IN UPM
SCREENING SOLUTION REQUIREMENTS
• Functional & Business – Consolidated trading partner master data to be used in batch job screening
– Full audit trail for screening results available
– Estimated volumes:• Estimated number of 300 000 trading partners includes:
• Estimated annual growth of trading partners = 3%
– ’Consolidated EU sanctions list’ as primary sanctions data source• Other lists optional
• Technical:– One global instance
– Data security• On-premise (in-house) installation required
• Customer and other trading partner data not to leave UPM network
ORACLE GTM SELECTION
• RFX process arranged with five different sanction party screening solution
providers in Q4/2012
• Oracle GTM selected based on functional match, license costs and lowest
estimated implementation effort
• Quality of screening algorithms was emphasized for minimizing false
positive hits
• Implementation was done with existing OTM AMS vendor
• Internal UPM resources from IT and UPM’s supply chain worked closely with the
implementation partner during the project
SANCTIONED PARTY SCREENING –
SOLUTION DESIGN
OTM / GTM
SANCTIONED PARTY SCREENING –
CONCLUSION
• The sanctions regimes are not a new phenomenon. Regimes have been in
place for a long time. However the main drivers behind the matter being /
becoming increasingly important:– Situation in Russia / Ukraine
• Restrictions are more extensive (previously concerned limited markets only)
• Restrictions change frequently
– Banks are facing increased fines especially in the US
• Banks are imposing strict sanctions clauses and increasingly conducting sanctions due diligence on
their clients
Corporate wide global TMS in UPM has been a solid platform for ensuring
global trade compliance
– All trading partners and related trade transactions are available in one
TMS platform for fully automated sanctions party screening