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ICT and e-Business in the Pulp, Paper and Paper ... - empirica

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<strong>Pulp</strong>, paper <strong>and</strong> paper products<br />

CASE STUDY: <strong>ICT</strong> FOR NEW PRODUCTION TRACKING (NPT) –<br />

INTEGRATED E-BUSINESS INNOVATION IN OFFICE PAPER<br />

PRODUCTION<br />

Abstract<br />

This case study describes <strong>the</strong> e-bus<strong>in</strong>ess activities of a globally operat<strong>in</strong>g European<br />

producer of office paper 86 <strong>and</strong> its implementation of production track<strong>in</strong>g software system<br />

for supply cha<strong>in</strong> management based on RFID-technology.<br />

Be<strong>in</strong>g part of a wider <strong>in</strong>novation policy <strong>and</strong> <strong>in</strong>vestment scheme, <strong>the</strong> <strong>in</strong>tegration of <strong>the</strong> new<br />

system with<strong>in</strong> <strong>the</strong> exist<strong>in</strong>g production processes resulted <strong>in</strong> higher mach<strong>in</strong>e utilization,<br />

greater process efficiency, <strong>and</strong> improved order throughput times. However, new dem<strong>and</strong>s<br />

on workers’ skills, high <strong>in</strong>vestment costs <strong>in</strong> complementary physical structures, <strong>and</strong> huge<br />

RFID data output that needed to be "translated" <strong>in</strong>to managerially useful <strong>in</strong>formation,<br />

arose as ma<strong>in</strong> challenges to value creation.<br />

Case study fact sheet<br />

Ma<strong>in</strong> bus<strong>in</strong>ess activity:<br />

Primary customers:<br />

Most significant geographic market:<br />

Ma<strong>in</strong> e-bus<strong>in</strong>ess applications studied:<br />

Key words:<br />

<strong>Bus<strong>in</strong>ess</strong> <strong>and</strong> packag<strong>in</strong>g paper, converted packag<strong>in</strong>g<br />

O<strong>the</strong>r bus<strong>in</strong>esses from various <strong>in</strong>dustries<br />

global<br />

RFID use, supply cha<strong>in</strong> management<br />

production management, warehouse management,<br />

process efficiency<br />

Background <strong>and</strong> objectives<br />

The firm under study is a globally operat<strong>in</strong>g paper manufacturer <strong>and</strong> part of a bigger<br />

group which serves markets all over <strong>the</strong> world. It has a total production capacity of more<br />

than 2 million tonnes of uncoated woodfree (UCWF) paper per year.<br />

This case study looks at issues of RFID technology for <strong>in</strong>tegrated SCM (supply cha<strong>in</strong><br />

management) <strong>in</strong> <strong>the</strong> P&P <strong>in</strong>dustry. Objectives of <strong>the</strong> case study are:<br />

to describe <strong>the</strong> technical architecture of <strong>the</strong> newly employed IT software<br />

(technology dimension);<br />

to analyse how e-bus<strong>in</strong>ess RFID technology was adopted, <strong>and</strong> is be<strong>in</strong>g used;<br />

to assess <strong>the</strong> impact on <strong>in</strong>dividuals, bus<strong>in</strong>ess processes <strong>and</strong> organisational<br />

performance <strong>in</strong> general terms (impact dimension).<br />

The <strong>in</strong>formation is based on <strong>in</strong>terviews with decision-makers who are responsible for<br />

manag<strong>in</strong>g both <strong>the</strong> implementation <strong>in</strong> <strong>the</strong> branches <strong>and</strong> <strong>the</strong> development of <strong>the</strong> new<br />

software.<br />

86<br />

The company does not want to be named.<br />

125

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