UPM has boosted its supplier assessment practices in Russia by increasing the number of assessments and developing the methodology. In 2006, the company carried out 150 supplier assessments and 252 logging site checks. This covered suppliers responsible for 85% of the wood procured in Russia.
Supplier assessments and logging site checks help ensure that suppliers work according to UPM's requirements.
New methods have been developed for checking the quality and accuracy of origin of wood documentation prior to the logging site check. During 2006, a lack of documentation resulted in the termination of two contracts and a deferral of payment to 8 suppliers.
Some 66% of the logging sites assessed was classed as good. Minor non-conformities related to health and safety, logging site management and logging practises were found on 34% of sites. Corrective actions have been agreed with the suppliers concerned.
"We have assessed our Russian suppliers since 1998. During 2006, we have been developing our Russian forestry and wood sourcing organisation. Part of that has been to intensify our supplier assessment practises and develop new ways to check origin of wood documentation", says Juhani Hongisto, UPM's Chief Forester responsible for wood sourcing in Russia. "The assessments continue to be an effective method for creating mutual understanding, giving feedback and strengthening cooperation with the suppliers."
Supplier assessments including logging site checks are part of UPM's origin of wood tracing system, which the company started building in 1996. The system is based on a statement of origin, which is required for all wood deliveries, a database and a mapping system.
"Knowing the origin of wood is essential for UPM. The tracing system has helped us to respond quickly and accurate on specific questions raised by interest groups and to assure our stakeholders that the wood purchased in Russia is sustainable, legal and not from protected areas" Mr Hongisto continues.
Assessment information from previous years can be found on UPM's internet site http://www.upm-kymmene.com/traceitUPM via Packaging & Converting Essentials
