SCA Logistics refines the procurement of road and rail transport

SCA Logistics Commercial Manager Lotta Åkre is responsible. 

“We have many procurement processes running simultaneously at the moment and the one for road transportation of wood products has just concluded,” she says.  

The contract for road transportation of wood products in Scandinavia was concluded by 1 December. By working closely with sawmills, SCA Logistics has developed a structured working process. 

“For example, we have prepared a year wheel for activities to help us refine procedures and communication about procurements both internally and externally,” says Lotta. 

New procurement tool streamlines the work

To cope more efficiently with the large number of tenders, SCA Logistics is testing new digital tools, including TenderEasy for road haulage in England. 

“We have used TenderEasy before for container transport and we are now testing it on road haulage,” says Lotta, who adds that which solution is best suited depends on volumes and market conditions, as needs vary somewhat depending on the demands of the market and customers. 

In addition to TenderEasy, SCA Logistics also uses systems such as C-Load and TI Contract to handle its procurements. These digital solutions help to process the extensive material involved in procurements for transporting wood products, paper and pulp through Scandinavia and Europe, which involve a great many routes and tenders. 

“We receive tens of thousands of tenders, so these tools are invaluable for distributing RFQs and processing the enormous amount of data,” says Lotta. 

Rail transport under pressure

One particular challenge facing SCA Logistics is procuring rail transportation. 

“There are only a few actors on the market and costs are rising due to higher infrastructure fees. Some rail operators have significant problems and will be discontinuing a number or routes, some of which we use,” explains Lotta. 

She describes the situation as complex, as the difficulty railways face in delivering stable transportation is in stark contrast to the environmental goals that both politicians and SCA Logistics are striving for.  

A volatile market demands flexibility

SCA uses different types of contracts in Europe and the United States. While procurements in Europe are often for contracts covering many years, in the US contracts are signed on a quarterly basis. 

“The US market is more volatile and it can be hard to predict prices over the course of a year,” explains Lotta, who emphasises the importance of finding a balance when setting prices. 

“If the price is too low, we risk lacking capacity, while if they are too high we may be less competitive.” 

By working with flexible contract structures, SCA Logistics can adapt to shifting market conditions in both the US and Europe. And with the aid of efficient digital tools and a structured working method, the process can be optimised.  

“We want to secure transport that meets our quality and sustainability requirements and at the same time responds to changes in the market,” concludes Lotta.  

Text: Håkan Norberg