Working Together for a Successful Supply Chain Mike Macedo, - - PowerPoint PPT Presentation

Working Together for a Successful Supply Chain

Mike Macedo, International Paper Virginia Loggers Assoc 2015 Annual Meeting

International Paper . . . International Paper . . .

Was founded in 1898 Was founded in 1898 58,000 employees worldwide In 24 countries Is headquartered in Memphis TN Is headquartered in Memphis,TN 2014 net sales of $24 billion

Our Vision

To be one of the most respected and successful companies in the world companies in the world.

Mark S. Sutton Chairman and Chief Executive Officer International Paper

Global Business Overview

INDUSTRIAL PACKAGING CONSUMER PACKAGING PRINTING PAPERS & PULP

85% North America 9% EMEA 4% Asia 2% Latin America 58% North America 31% Asia 11% EMEA/Russia 35% N.A. Papers 26% EMEA/Russia 19% Latin America 16% N.A. Pulp 3% India

62%

PERCENT OF TOTAL REVENUE

14%

PERCENT OF TOTAL REVENUE

1% Asia

24%

PERCENT OF TOTAL REVENUE

4 Company Overview

WHO WE ARE

IP Global Footprint IP Global Footprint

Absorbent hygiene products d d th i i k t demand growth in emerging markets

10,000

ta)

7,000 8,000 9,000

me (USD/capi

4,000 5,000 6,000

• sable Incom

1 000 2,000 3,000 4,000

Dispo

1,000

1995 2000 2005 2010 2015 2020

Source: Euromonitor

MEA Asia-Pacific Eastern Europe Latin America

IP’s History of Fluff Capacity IP s History of Fluff Capacity

1,600

The Riegelwood conversion is the next step in supporting our customers’ growth

1,200 1,400 , ) Tons 800 1,000 pacity (000’s)

Riegelwood #2

400 600 Cap

Riegelwood $60MM Franklin $100MM #2 $135MM

200

2007 2009 2013 2016

Pensacola Georgetown $60MM

Source: IP Pulp Business

2007 2009 2013 2016

Multi-Mill System & Efficient Supply Chain Solutions

Supplying the best absorbent fiber to customers around the world

Franklin, VA 270k mtpy Riegelwood, NC 200k mtpy + 400k mtpy Georgetown, SC 330k mtpy Pensacola, FL 150k mtpy

= Slash Pine / Long Leaf = Loblolly / Short Leaf

Source: IP Pulp Business

py

Our Franklin Fluff Pulp Mill Our Franklin Fluff Pulp Mill

Fluff Pulp Production at Franklin

10

Rising Tide Lifts All The Supply Chain Boats

Landowners Loggers Suppliers Truckers Mills Support

Where We Can Work Together Where We Can Work Together

• Efficiency improvements

Efficiency improvements

– Logging productivity & Cost Net weight – Net weight – Trucking (Technology) Increasing & improving the labor pool – Increasing & improving the labor pool – Receiving mill wood handling

G ff

• Governmental Affairs

– Regulations

• Safety

Turning Your Trucks Around! Turning Your Trucks Around!

2013‐2015 Rdwd TAT by Month

30 35 20 25

in. TAT

10 15

Mi Target Linear (TAT)

5 n r r y n l g p t v c n b r r y n l g p t v c n b r r y n l g p t v c Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Destination of Choice Driver Kiosks

Destination of Choice Enhancements Enhancements

Safety !

Driver Safety Training Days Driver Protection booths Driver Protection booths

Load Safety

Load Heights Unbinding Racks g

Safety !

Portable untarping untarping Ladders Stationary Stationary Tarping Stations

SOUTHEAST VIRGINIA LOGGING CAPACITY TASK FORCE ACCOMPLISHMENTS ACCOMPLISHMENTS

• June 2013 Logging Expo – 150 participants

gg g p p p

• Participation in the Richmond Logging Equipment Expo
• Workforce Development Counselors Tour
• Presentation to schools -opportunities in the logging

business Interviews with local media

• Interviews with local media
• Publication in Timber Harvesting Magazine
• Workshops:

Workshops:

– Transportation and Trucking Regulations – 65 participants – Insurance for Loggers– 48 participants Chipper Maintenance and Safety – Chipper Maintenance and Safety – Truck Weights – 85 participants

Virginia Truck Weight Law Virginia Truck Weight Law

• Took two years of hard work

Took two years of hard work

• Cooperation throughout the supply chain

A i ti ill l d l – Associations, mills, landowners, loggers

(Virginia Forestry Association, Virginia Forest Products Association, Virginia Loggers Association, The Virginia Farm Bureau, The Virginia Agribusiness Council, The Virginia Department of Forestry)

– Effective government relations work – Support from Governor’s office, Secretary Todd Haymore & Deputy Secretary Sam Towell

Success !

Result = 90,000 lb legal weight

• Less waste in supply chain
• Competitive with Other States

p

• Responsible implementation

TEAM TRUCK

A New Collaboration Opportunity

• Collaboration of Loggers, Insurance

Companies, Mills, Landowners to reduce accidents through effective fleet management, increasing the number of safe, qualified drivers in order to deliver a sustainable and profitable supply chain.

TEAM TRUCK TEAM TRUCK

• Four Key Subcommittees

Four Key Subcommittees

– Awareness/Professionalism Education/Training – Education/Training – Accountability Promotions – Promotions

A Dynamic Industry A Dynamic Industry

• Pulp & Paper – Commodity Business

Pulp & Paper Commodity Business

– Low cost production wins Constant change is way of life – Constant change is way of life – A strong Supply Chain is a necessity

Flexibility + Collaboration = Success!