Industrial Management & Data Systems

Supply chain strategy in a global paper manufacturing company: a case study

Pekka Koskinen,
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

Article information:
To cite this document:
Pekka Koskinen, (2009) "Supply chain strategy in a global paper manufacturing company:
a case study", Industrial Management & Data Systems, Vol. 109 Issue: 1, pp.34-52, https://
doi.org/10.1108/02635570910926582
Permanent link to this document:
https://doi.org/10.1108/02635570910926582
Downloaded on: 27 March 2019, At: 03:32 (PT)
References: this document contains references to 45 other documents.
To copy this document: permissions@emeraldinsight.com
The fulltext of this document has been downloaded 3397 times since 2009*
Users who downloaded this article also downloaded:
(2008),"Supply chain challenges of North-European paper industry", Industrial Management & Data
Systems, Vol. 108 Iss 2 pp. 208-227 <a href="https://doi.org/10.1108/02635570810847581">https://
doi.org/10.1108/02635570810847581</a>
(2008),"Global supply chain risk management strategies", International Journal of Physical
Distribution &amp; Logistics Management, Vol. 38 Iss 3 pp. 192-223 <a href="https://
doi.org/10.1108/09600030810866986">https://doi.org/10.1108/09600030810866986</a>

Access to this document was granted through an Emerald subscription provided by emerald-srm:537899 []
For Authors
If you would like to write for this, or any other Emerald publication, then please use our Emerald for
Authors service information about how to choose which publication to write for and submission guidelines
are available for all. Please visit www.emeraldinsight.com/authors for more information.
About Emerald www.emeraldinsight.com
Emerald is a global publisher linking research and practice to the benefit of society. The company
manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as
providing an extensive range of online products and additional customer resources and services.
Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee
on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive
preservation.

*Related content and download information correct at time of download.

 The current issue and full text archive of this journal is available at
www.emeraldinsight.com/0263-5577.htm

IMDS
109,1 Supply chain strategy in a global
paper manufacturing company:
a case study
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

34 Pekka Koskinen
Oy Confidea Business Consulting Ltd, Espoo, Finland
Received 1 June 2008
Revised 1 August 2008
Accepted 21 August 2008 Abstract
Purpose – The purpose of this paper is to analyze the relationship between corporate and supply
chain strategy, as well as its implementation in a multinational paper producing company.
Traditionally paper producing companies have had a strong interest in developing a physical
infrastructure for their customer deliveries. However, supply chain thinking is still an unstructured
issue in the case company.
Design/methodology/approach – This research work is mainly based on the case company’s
strategy material and interviews with senior management, is mainly qualitative and is based on a
constructive research approach aimed at trying to find a workable and forward looking solution based
on the three strategies.
Findings – The core findings concern the individual business division strategies, which jointly
comprise the corporate strategy. Some of the business divisions do have a certain amount of supply
chain management aims in their strategies. Furthermore, there is no real corporate supply chain
strategy.
Research limitations/implications – The research was conducted at a company with strong
presence in Northern Europe, which limits its applicability. Thus, the research results mainly reflect a
Northern European business environment and cannot be generalized on a global level.
Practical implications – The conclusions of the research work include a recommendation for a new
management model for the corporate supply chain strategy, which is based on cooperation between
the business divisions and logistics organization.
Originality/value – The value of this paper is based on the practical analysis of the case company’s
business divisions’ strategies and interactivity between the logistics organization and the
implementation of its strategy.
Keywords Multinational companies, Supply chain management, Corporate strategy,
Distribution management, Paper industry, Finland
Paper type Case study

1. Introduction
The global pulp and paper industry is a major contributor to the overall health of the
world’s economy. With a strong presence in almost every region of the world, the
industry produced more than 360 million metric tons of paper and paperboard in
close to 9,000 mills (The Confederation of European Paper Industries – CEPI, 2006).
The forestry industry, according to a general definition, includes all types of products
such as timber, plywood, paper and pulp. The paper industry is defined in this context
Industrial Management & Data so that only paper and paperboard production are included in this definition.
Systems There are 913 paper and pulp producing companies in Europe. These companies
Vol. 109 No. 1, 2009
pp. 34-52 have a total of 1,244 paper and pulp mills. The production capacity of these
q Emerald Group Publishing Limited CEPI-members mills is 99 million tons of paper and paper board products and
0263-5577
DOI 10.1108/02635570910926582 43 million tons of pulp. The annual turnover of these companies is 76 billion EUR.
 The European forest industry cluster (all types of forest industry products) and their Supply chain
suppliers generate an annual turnover of more than 400 billion EUR. The forest cluster
directly employs 275,000 employees in Europe. Its contribution to indirect employment
strategy
is approximately 3.5 million persons in Europe (CEPI (2006) Annual Statistics).
Finland has always been considered to be one of the paper making nations. At the
end of 2006, the paper and paperboard capacity of the Finnish companies was 38
million tonnes. 23 million tonnes of the Finnish owned production capacity (62 percent) 35
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

is located outside Finland (Finnish Forest Industries Yearbook 2007, 2007). Currently,
there are 28 paper mills in Finland. The paper and paper board production capacity of
the Finnish paper mills was 14.1 million tons in 2006 and approximately 90 percent
of the production was exported. The forest industry in Finland has also been a major
contributor to the Finnish national economy. The forest industry’s share of industrial
production in Finland in 1999 was 19 percent, in 2000 it was 22.4 percent and in 2004 its
share of industrial production was 17.1 percent. Its share of Finnish industrial
production has been declining due to the fact that the industry has been investing more
in production capacity in foreign countries than in Finland (FFIFF, 2005 statistical
web-service).
Owing to the geographical position of Finland, the Finnish forest industry has a
10 percent additional transport cost compared with its Central European competitors.
Each year the forest industry transports about 100 million tonnes of goods within the
country (FFIFF, 2005).
The role of supply chain management in the Finnish forest industry is increasing as
all companies wish to deliver their products by using more economical logistics
solutions. Global competition is also playing an increasingly strategic role in
developing supply chain solutions for the whole global forest industry. The role of
supply chain management in a large paper manufacturing company has a very
strategic role because most of a company’s production has to be delivered to customers
outside the country of production.
This research describes the development process that has occurred between the
business divisions’ strategy development and the development of the logistics and
supply chain strategies. The business divisions’ strategies have jointly created the
company’s corporate strategy.
The case company’s business divisions’ strategies and the corporate logistics’
strategy are primary sources for this research work. The strategy analysis was then
completed through selected interviews conducted with the corporate divisional and
logistics top management representatives.
The research is structured so, that after the introduction, a review of the literature
on the subject is presented in Section 2. Section 3 discusses the research methodology
and the motivation behind this study. In Section 4, the case company’s basic facts are
presented and discussed. These are; case company selection, introduction to the
business environment, customer service strategy, logistics strategy, supply chain
ownership, preferred partner strategy and logistics key performance indicators (KPI).
The research is concluded in a discussion section and in a conclusions section.

2. Literature review
A general trend in supply chain relationships is a shift from an arm’s length to a true
partnership approach, in which a supply chain partnership is placed on a strategic level.
 IMDS The supply chain partnership has two directions. The first direction runs from the
109,1 logistics organization to the business divisions, who are internal customers for a
corporation’s logistics. The second dimension of the partnership is the traditional
partnership with logistics service providers.
The strategic partnership includes such elements as, risk and benefits sharing, the
exchange of operating and financial information, joint investments in facilities and
36
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

continuous improvement as well as new product and service development programs

(Carbonara et al., 2002; Moody, 1993; Simatupang and Sridharan, 2005; Cassivi, 2006;
Kampstra et al., 2006; Lambert et al., 1996; Cooper et al., 1997; Friis Olsen and Ellram,
1997; Bensaou, 1999). Cooper et al. and Bensaou argue that the number of real partners
in supply chains is limited because of a company’s resources. Hence, the issue of
resources should be addressed when building the right relationships, which requires
careful planning and strategic decision making.
One of the key elements for distinguishing logistics from supply chains is the
partnership aspect. Partnership is one of the strongest indicators of a successful supply
chain partnership. McAdam and McCormack (2001) have identified some risk elements
with the partnership thinking. For instance, common goals will be more difficult to
agree on between the partners because the number of partners may become too large.
Partners can also become more dependent on each other, which may lead to a
company’s management feeling insecure if they feel that they are no longer in total
control of their company’s future.
Sako (1992), Lamming (1994) and Doran (2002) describe some business processes in
supply chain management, which can lead to improved performance for partners in
supply chains. Among these business processes are collaborative planning, long-term
information exchange, coordinated capacity planning, small quantity JIT delivery
practices, price variations, attitude to quality and the role of R&D. Sako (1992) states
that trust and control are key elements in supply chain partnerships. He describes three
different types of trust: contractual, competence and goodwill trust. Contractual and
competence trust are breached by a failure to meet contractual agreements including
agreed performance measurements. Goodwill trust exists when supply chain partners
act at all times for the benefit of both parties.
Popp (2000) define supply chain partnership as starting from transparency and
quality of information flows. Uncertainties arise due to a lack of perfect information
about other members in the supply chain. The co-operation necessary for increasing
information sharing among a supply chain is called supply chain partnership.Lambert
et al. (1999) supply chain partnership model includes seven main elements:
(1) Joint planning. This can be achieved by joint teams, which are assigned to
discuss current performance, possible improvements and long-range plans.
(2) Joint performance measurement tools. These are a natural step after the joint
planning. The performance measures are jointly developed and each party may
make changes to the other’s system without prior approval, meaning that the
operating controls are often so closely linked that it is hard to tell where one
organization ends and the other begins.
(3) Balanced two-way, multilevel communication. It means that communication can
be understood as human communication between the partnering organizations.
 The communication can also be understood as communication between the Supply chain
computer applications (EDI, web-based solutions). strategy
(4) Risk and reward sharing. It means that the partners may take a controllable risk
in order to improve the performance of the other partners. Risk and reward
sharing is normally measured more over a long-term partnership than on a
day-to-day basis.
37
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

(5) Trust and commitment. A good partnership is based on this. Each partner
believes completely that the other is totally committed to the other’s long-term
success.
(6) The scope of a partnership. It means that the intent of both parties is to
maximize the amount of activity performed. Each partner brings either a
large percentage of business and/or key value added processes to the
partnership.
(7) Reciprocal investments. This partnership means that investments will bring
benefits to all partners in the supply chain.
The authors, who have been cited in the area of supply chain partnership, share many
similar opinions on partnership structure. There are three main elements, which are
cited by the authors. The first element is collaborative planning, which refers to the
fact that supply chain partners have to understand the other partners’ business
processes and have to move from business co-ordination to business integration. The
second element deals with the human factor and emphasizes that each partnership has
to have a promoter, who tries to achieve change in the thinking of the people who are
daily involved in maintaining a partnership. The third element deals with information
exchange, the transparency of information and joint measurement tools for joint
supply chain management. Trust in ones partners is a common element for all the
abovementioned supply chain partnership elements.
3. Research methodology and the motivation for the study
The behaviour of the case company’s supply chains has been discussed by the case
company’s divisional and logistics management. Thus, it is known that there are
several reasons which explain the length of lead times of the current supply chains.
In fact it is generally known that paper industries based in Finland have relatively
long lead times to their main markets. In a previous study (Koskinen and Hilmola,
2008) on paper industry supply chains it was found that only 30-35 percent of the
lead times for customer orders from Finland to the UK and the USA kept to their
planned lead times. This general statement is also valid for the case company in this
research study.
Customer behaviour is one of the explanations, but the supply chain management
rules of the case company also explain the length of the lead time. A third explanation,
which has not been analyzed in depth, is the logistics strategy of the case company.
The case company’s internal discussion refers to the fact that the structure of the
logistics organization does not support the operations of the logistics structure, which
enables the supply chain management (Case Company, 2005c, d).
The strongest motivation for this research is to reach an in depth understanding of
the logistics strategy of the case company and how it is implemented in the company’s
daily operations.
 IMDS This research will give answers to three specific research questions:
109,1 RQ1. Do the case company’s business divisions have a clear SCM strategy?
RQ2. What is the logistics strategy of the case company and how it is being
implemented?
RQ3. Which organizational unit has the ultimate responsibility for the
38
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

SCM/logistics within the case company?

This research is based on the strategy material of the case company. The strategy
implementation material has been added to by the conducting of interviews with key
persons in the business divisions and in logistics. The interviewed persons represented
both corporate business development (senior vice president, corporate development)
and senior logistics management (senior vice president, logistics). The main target of
the interviews was to form a deeper understanding of the case company’s corporate
and logistics strategy. The interviews lasted approximately three hours and all of them
followed the same pre-planned structure. The interviews took place in 2005 when the
case company’s strategy process was completed.
In order to gain an understanding of the development process between the business
strategy and logistics strategy the research is descriptive and based on qualitative
material such as the strategy material and interviews. This allows further research into
the implementation of the business and logistics strategy to be also based on
quantitative material. This research is also inductive in character as the main target is
to find an understanding and propose better solutions for co-operation between the
corporate and logistics strategies.
The results of this research are valid only for the case company as long as the case
company continues to use the same kind of logistics structure and operational model.
Benchmarking with other paper producing companies is possible. However, logistics
strategies vary from company to company.
The objective of this research is to find out how the company’s logistics strategy is
developed and then later on implemented in the case company.
4. Case company, corporate strategy and basic information
4.1 Case company selection
Selecting a case company for a research study is not an easy task. Two Finnish paper
producing companies were contacted during the planning phase of this research work.
Both companies had, by that time, their logistics network and supply chain operations
working in a similar way, which means that they were using the same logistics service
providers. One of the companies had a large internal logistics network development
project ongoing and no resources were available for an external research project.
The other company, which was then selected as the case company, confirmed that they
would like to share data and human resources for an external research study as the
results could benefit the development of their logistics and supply chain management
operations. Time from both the senior logistics management and from the senior
operational management was allocated to the research project.
4.2 Case company, an introduction to its business environment
The case company had sales of approximately 10 billion EUR in 2005. The case company
has 16 production plants in Europe and another six production plants outside Europe.
 The biggest markets measured by annual turnover in 2005 were Germany, North Supply chain
America, UK, Finland, France and other EU countries. strategy
The case company’s market position is number one both in Europe and globally for
magazine papers. For newsprint the case company’s market position in Europe is
second but fifth on the global market. For fine papers, the Case Company’s (2005a)
European market share rank is third but fifth on the global market.
39
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

4.3 Case company’s customer service strategy

The case company’s strategy template (Case Company, 2002) contains five main items:
Purpose, vision, key success factors, behavioural principles and corporate
responsibility. These items describe the basic values of the case company. The
purpose is “We create human and economic value by innovative paper solutions for
printed communications.” The vision is “The most attractive paper company.”
The keys success factors are listed as follows: customer success and corporate brand.
The case company should have cost leadership in all cost categories (variable, fixed
and capital costs). The company’s value is increased through growth that is organic
and also acquisitions. The behavioural principles contain such values as: openness,
trust and initiative. Corporate responsibility includes social and environmental
responsibilities.
The case company’s customer service strategy is at the top of the business
division’s strategies as a joint element for all business divisions including the logistics
operations.

4.4 Case company’s logistics strategy

Strategic development in the case company is first made by the business divisions and
then the divisional strategies are summarized into the corporate strategy. The
customer service strategy has a direct link to divisional and corporate strategies. The
customer service strategy contains promises of new logistics and supply chain services
for customers.
The interaction between the divisional, customer service and logistics strategies
creates the strategy process of the case company. The strategy evolution follows a four
step model. The divisional level customer service strategy requires new logistics
services to be developed by the logistics organization (step one). The logistics strategy
includes the preferred partner strategy towards the main logistics service providers.
The preferred partners perform the logistics operations and develop new logistics
services. The preferred partners’ strategy is one component of the logistics strategy
(step two). Steps one and two show how strategic requirements are derived from the
case company’s strategy and then communicated to the logistics service providers.
New service processes are developed jointly by the case company logistics
organization and by the preferred partners. The preferred partners report the
collaborative strategy implementation to the logistics organization and follow the
guidelines of the logistics strategy (step three). The logistics organization
communicates the logistics strategy implementation to the customer service strategy
division in order to match the new requirements of the customer service strategy
(step four).
The interaction between the customer service, logistics and preferred partners
strategies is shown in Figure 1.
 IMDS
Corporate Strategy
109,1 (Including customer service strategy)

Business Business Business

Division A Division B Division C
Strategy Strategy Strategy
40
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

Step 1
Step 4

Logistics
Strategy

Figure 1. Step 2 Step 3

The interaction between
corporate strategy and Preferred
logistics strategy in the Partner’s Strategy
case company

The logistics mission of the case company is defined as follows (Case Company, 2005b):
Our mission is to become a world class logistics function that is fully integrated with the four
business divisions and supports both customer management and supply chain management
processes. This will be achieved by implementing logistics strategies, competencies,
organization structure, processes and metrics.
In this research work the case company’s logistics strategy has been modified and
summarized into four main elements: The first element is the integration into the
business divisions and the preferred partners. The second element is sales forecasting
and logistics planning information. The third element is supply chain management and
the fourth element is management systems with preferred partners. This new grouping
of the logistics strategy elements is motivated by the fact that the logistics strategy
implementation will be tested by analyzing the lead time as an explanatory factor for
the logistics strategy implementation in the case company.
The first strategy element is the integration into the business divisions and the
logistics service providers. This means in practice that the case company’s logistics
department has professional know how about future logistics demands from the
business division. The logistics organization converts the logistics business needs into
strategic actions, which are then carried out together with the logistics service
providers. The business divisions manage the sales network and the production
capacity planning. The results from the production capacity planning are then
communicated to the logistics organization, which communicates the logistics
forecasting information to the logistics service providers. The two directions of the
logistics integration are shown in Figure 2.
The second strategy element is the sales forecasting information, which is the basis
for the logistics planning (Figure 3). The business divisions deliver the sales forecasting
information to logistics, where the sales forecasting information acts as basis for
 Integration Supply chain
strategy

Case company Integration to

Integration to logistics strategy, preferred partners
business divisions element one: = Logistics service
41
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

Integration providers

Figure 2.
Production capacity Logistics forecasting Case company’s logistics
planning information strategy; the two
directions of the logistics
integration
Source: Modified from Case Company (2005b)

Sales forecasting and

logistics planning

Case company Logistics planning

Sales forecasting logistics strategy, information to the
Information from the Element two: logistics service
business divisions Forecasting and providers
logistics planning

Production capacity Logistics planning Figure 3.

planning information Case company’s logistics
strategy; sales forecasting
and logistics planning
Source: Modified from Case Company (2005b)

operational planning. The sales forecasting information is supported by the production

capacity planning information. The sales forecasting and production capacity planning
information is also communicated to the logistics service providers for annual planning
purposes.
The third element of the logistics strategy is supply chain management, which has
two sub elements, new supply chain management service offerings to the business
divisions and joint supply chain management concept development, which is jointly
developed with the preferred partners. The main elements of the supply chain
management in conjunction with the business divisions are the demand forecasting
concepts and responsibilities, a proactive approach to developing the logistics role in
customer management and global customer management team support. The case
company’s definition of a supply chain sees it as the complete set of activities,
resources and information needed to plan, source, manufacture, store, sell and deliver
 IMDS product and service to customers (Case Company, 2005b). Logistics is thus an
109,1 integrated part of supply chain management. The supply chain management element
of the logistics strategy is shown in Figure 4.
The fourth strategy element is management systems with preferred partners. The
result of this strategy element is that management systems should be able to provide
more efficient supply chain management control and reporting systems for the
42
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

business divisions. Consequently, management systems have to be developed

jointly with the logistics service providers. The management systems are developed
firstly with preferred partners and not with all logistics service providers.
Management systems with preferred partners are shown in Figure 5.
The case company calls its logistics strategy a “logistics strategy,” not a supply
chain management strategy. This reflects the fact that the logistics organization
concentrates more on the development of the physical infrastructure of the
transportation and port network than on the management of the supply chain itself.
In the current governance model of the case company the issue of supply chain
management belongs to the business divisions, not to the logistics organization.

4.5 Supply chain ownership in the case company

The traditional way of discussing the supply chain ownership of the paper industries
says that the supply chain ownership belongs to the paper mills as they are the
business units with profit making purposes. Those companies that follow this type of
supply chain ownership have a dedicated supply chain manager at each mill. The main

Supply Chain Management

Case company Joint SCM-concept

New SCM service
logistics strategy, development with
offerings to the
element three the logistics service
business divisions
Supply Chain Management providers
Figure 4.
Case company’s logistics
strategy; supply chain
management
Source: Modified from Case Company (2005b)

Management Systems with

Preferred Partners

Case company
More efficient SCM logistics strategy, Joint development
control and reporting element four of management systems
Figure 5. to the business divisions Management Systems with (KPI’s, IT, etc)
Case company’s logistics Preferred Partners
strategy; management
systems with preferred
partners
Source: Modified from Case Company (2005b)
 task of the mill’s supply chain manager is to develop the supply chains on a structural Supply chain
level. Their daily operations are managed by the central logistics organization and by strategy
the logistics service providers.
The supply chain ownership discussion of the case company is based on the
company’s customer service strategy. The reasoning behind that is that the customer
service team, which belongs to the sales network, is responsible for supply chain
43
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

management to every one of the customers. This philosophy can be highlighted with
some practical examples. The sales organization including the customer teams reserve
production allocation at the mills and the mills confirm production. The sales
organization is also responsible for the products in stock. The logistics organization
acts as logistics service provider towards the mills and sales organization.
The role of the mills is considered by the production units with the financial
responsibility for the production. The sales organization has an overall responsibility
for supervising the supply chains in an operational and financial way. The customer
teams are also the closest interface to the customers (Case Company, 2005e). The
ownership roles of the case company’ supply chains are not clearly defined in
the logistics strategy and ownership is not implemented in a uniform way in all the
different global marketplaces. Hence, the supply chain ownership issue should be
defined in more detail and follow the development stages of the logistics strategy.

4.6 Preferred partners’ strategy

The preferred partners’ strategy is a dominant entity in the case company’s logistics
strategy. The case company has hundreds of logistics service providers globally.
Those logistics service providers, who manage the supply chains with large volumes of
products (such market areas as Germany, UK, France, Italy, Belgium, etc.), are called
preferred partners.
It is generally said that a preferred partner’s strategy tries to avoid situations where
the case company considers the logistics service providers to be partners. This is
because providers do not share the same attitude due to the manner in which such
contracts are awarded (Gentry, 1996). The trend has been for companies to move from
transactional exchanges to relationship exchanges with the preferred partners
(Attaran and Attaran, 2007; Dunne, 2008; Maheshwari et al., 2006).
Fontenot and Wilson (1997), Sharma and Sheth (1997), Sheth and Parvatiyar (2000)
and Esposito and Passaro (1997) describe the evolution in supply chain partnership
with reference to the aircraft industry. Technological performance used to be the main
criteria in the selection of sub-contractors. Over the last few years, management,
logistics and organizational skills have received higher value in the selection of
subcontractors.
The case company acts as a “channel captain” towards the logistics service
providers. The channel captain concept is described by Kumar (1998) and Kumar and
Motwani (1995) as the most effective way of aligning the business processes in a
supply chain. The channel captain sets the strategic objectives for the whole supply
chain, including the sub-objectives for the logistics service providers. Cooper and
Ellram (1993) discuss the same type of supply chain leadership but refer to it as a
channel leader. The supply chain partnership covers several areas of various business
processes, which can be changed over time. Hughes et al. (1998, p. 70) state that
partnerships can become closer and they can also go to arm’s length relationships.
 IMDS Many intensive partnerships may gradually turn into relatively standardized, business
109,1 as usual contracts.
The preferred partner strategy of the case company’s logistics has six main
components (Case Company, 2005b):
(1) integration with the preferred partners;
(2) integration with the strategic management of the preferred partners;
44
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

(3) supply chain management;

(4) management systems with preferred partners;
(5) e-logistics; and
(6) transport risk management.

The main philosophical components are long-term commitment, shared risks and
benefits, joint management and open books. The overall target of the case company is
that two thirds of all volumes are routed through preferred partners.
Integration with preferred partners (1) expresses the case company’s interest to
commit themselves to selected, reliable logistics service providers for long-term
cooperation. The integration with the strategic management of the preferred partners
(2) is defined as “logistics is part of annual planning, market organization and target
setting on divisional, product group, mill and customer segment level” (Case Company,
2005b, pp. 10-15). Several authors (McAdam and McCormack, 2001; Armistead et al.,
1996; Hamel and Prahalad, 1989; Dale, 1999) support the role of management’s
commitment and leadership as the most important driver for successful change in
supply chain thinking.
The supply chain management strategy (3) is defined as follows:
The starting point for supply chain management is that all the business divisions should
have a clear picture of the supply chain management offering given by the corporation’s
logistics strategy (Case Company, 2005b, pp. 10-15).
The strategic target for management systems (4) with the preferred partners is to reach
the position of market leader (a perspective of 5-15 years) in terms of the quality to
price ratio.
E-logistics (5) is the fifth component of the preferred partners’ strategy. The first
sub-component of e-logistics is the development of electronic connections with
partners, suppliers, customers. The second sub-component is the monitoring of market
place developments in freight exchanges and third party e-logistics.
Transport risk management (6) belongs to management systems with the preferred
partners. Transport risk management includes damage reporting on a whole supply
chain and development steps for avoiding damages in the supply chain.
The case company’s logistics management’s view on the preferred partners’
strategy clearly indicates that the preferred partners in most cases are not the most
active drivers for joint development. The partnership between the Finnish paper
industry and port operators is one of the strongest partnership links in the supply
chain management. The vice president of logistics from the case company
(Case Company, 2005d) confirmed that the port communities follow the
requirements of the paper industry’s supply chain management and thus adapt their
business and IT-development according to the needs of the paper industry.
 4.7 Case company, logistics key performance indicators Supply chain
The case company has defined the use of the performance indicators (PI) and of the KPI strategy
in the logistics strategy. These are used for measuring the logistics performance from a
customer service point of view and from a financial point of view. Some of the KPI are
used for measuring internal business processes. The PI are defined as concrete
translations of the vision and strategy of the logistics function.
45
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

The KPI are defined on a concrete level in addition to the PI (Case Company, 2005b,
p. 1). The main features of the KPI are related to activities and processes, which are
vital or can make a significant difference in quality or costs compared to competitors.
Keebler et al. (1999) and Holmberg (2000) have analyzed corporate performance
measuring systems. Furthermore, Holmberg (2000) has categorized measurement
problems and placed them in four main problem areas.
The first area covers strategic issues. Holmberg states that a company’s strategy
and measurement tools are not always connected. In practice this means that the
measurement tools are not derived from the strategy and therefore do not support the
business (Adams et al., 1995).
The second area is that the companies rely on financial metrics, which shows
yesterday’s performance. This statement is also supported by Ganeshan et al. (2001)
who state that the companies have been mainly concentrating on inventory-based KPI
in supply chains such as determining optimal inventory policies and analyzing the
costs and benefits of technology and information sharing. Another instrument would
be the following of operations with the use of more operative measurement tools such
as handling capacity per hour linked to the resources used. The lack of real time
reporting means delays occur in taking corrective actions.
The third problem area is that there are many isolated and incompatible
measurement indicators. The number of metrics used in organizations tends to
increase over time and requires more resources to produce. Another aspect is that if
there are several partners in the supply chain, the question of the incompatibility of the
measurement tools should be seen as an issue calling for a joint strategic management
tool.
The fourth problem area is context in a supply chain. The context of a supply chain
is understood in different ways inside the individual companies and between the
partners in the supply chain.
The case company’s KPI for customer service are managed on two different levels:
the internal customer perspective and the delivery customer perspective. The internal
customer perspective (business divisions, etc.) includes performance measuring on
the service level, which includes flexibility and pro-activity and communication.
The internal customer PI are measured by a logistics scorecard questionnaire, which is
based on individual comments from the employees. The main target is to use the
results as basis for joint initiatives aimed at continuous improvement. The customer
delivery perspective includes performance measuring on the service level and includes
flexibility and pro-activity, and communication.
The supply chain performance measurement includes the measuring of ex mill date
(ex mill date is defined as the date when customer orders are produced at the mill)
versus the delivery date per leg in the supply chain, measuring the capacity usage of
vessels, train, lorries and other transport means and measuring the development of
transport damages to cargo. The main target is to reduce cycle times and stock levels.
 IMDS The perception of logistics staff members will be measured systematically. These
measurements includes team work, work organization and quality, pay and benefits,
109,1 customer focus, performance management and development, management
effectiveness, supervision, organizational identification, organization image and the
company’s values. The main target is to take initiatives on bridging gaps between
perceived performance and actual performance.
46 The case company’s KPI are summarized Table I.
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

The above mentioned KPI are partly used on a daily basis by the case company.
The financial KPIs are reported in great detail by the logistics organization. Those
KPIs that cover the internal business perspective and supply chain measuring are
partly made in a monthly follow up report. The transport damage KPIs are used very
actively to analyze the performance of the logistics service providers. The internal
customer service KPIs have not been implemented in practice. However, a KPI
measuring concept has been developed on a theoretical level. The KPI summary table
also reveals that the implemented KPIs do not include such measurement tools as lead
time and working capital.

5. Discussion
This research reveals that the roles for supply chain management and for logistics
management are not entirely clear in the case company. The daily operations and
management responsibilities are clear, but there are still some missing links in the
whole supply chain ownership. It was discussed whether the supply chain ownership
should belong to the sales network or to the mills’ or to the logistics organization? In the
current supply chain management concept of the case company, production at and
dispatching from the mill belong to the mill’s organizational responsibilities. The mill’s
IT applications provide necessary data to the logistics organization for the planning
and managing of the monitoring process phases. The logistics organization manages
transportation from the mills to the loading port.
Transportation by sea also falls within the scope of the business responsibilities of
the logistics organization. The warehousing processes and customer delivery process
at the discharging ports should clearly belong to the business divisions and the
logistics organization should also have the fourth party logistics service provider’s role
at the destination ports.
The sales network, which is part of the business divisions, should be trained in
order to improve the understanding of the supply chain management including the cost
elements and lead times. This would lead to better planning of the customer deliveries
and thus to shorter warehousing times at both the loading and discharging ports.
The future supply chain management responsibilities of the case company are
shown in Figure 6. The basic idea is that the logistics organization would have the
responsibility to maintain and develop the logistics network (transport routes, ports,
etc.) and also make contracts with all logistics service providers covering freight and
handling costs.
The business divisions would have three main roles, whereas the supply chain
management would have a central role that includes the lead time and working capital
issues. The supply chain management would also strategically manage the logistics
network structure including freight and handling costs, which organizationally belong
to the logistics organization.
 Supply chain
Internal business Measuring
perspective Method for measuring Strategic objective levels strategy
Efficiency of the logistics Share of volumes Two-third of the volumes Corporate
function in the supply chain transported by preferred transported by preferred level
partners partners Logistics
unit level 47
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

Measurement progress on Production of objective data Market

the environmental aspects of and showing a consistent area level
logistics (ISO 14001 progress from year to year Logistics
practices) unit level
Measurement of the Finding out the perception of Corporate
perception of staff, team good feeling by staff level
work, work organization and members and taking Logistics
quality, customer focus, initiatives to bridge gaps unit level
company values
Measurement of process Increasing effectiveness by Corporate
automation in the partner automating processes level
and supplier connections Logistics
unit level
Supply chain measurement
Comparison between ex mill Reduction of lead times and Corporate
and delivery date stock levels level
Measuring the capacity Market
usage of vessels, trains and area level
lorries Logistics
Transport damages unit level
Internal customer perspective
Service level Logistics scorecard Continuous improvement Corporate
Flexibility questionnaire level
Pro-activity Market
Communication area level
Logistics
unit level
Delivery customer perspective
Service level Logistics scorecard Joint development initiatives Corporate
Flexibility questionnaire covering with the customer teams level
Pro-activity two-third of the delivered Market
Communication volumes area level
Logistics
unit level
Financial perspective of KPIs Measuring dimensions Strategic objective Measuring
levels
Measuring logistics costs in Invoice and delivery to Information to support Corporate
relation to volumes and customers management decisions level
budget versus actual costs Delivery region, mill regarding the supply chain Market
Product group, transport leg area level
Logistics
unit level
Table I.
Summary of the case
(continued ) company’s KPI
 IMDS Internal business Measuring
109,1 perspective Method for measuring Strategic objective levels

Evolution of logistics cost Sea freights Logistics cost tariffs are Corporate
tariff Port handling costs included in the partnership level
Rail and road transport costs and supplier agreements. Market
48 The strategic objectives are: area level
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

benchmarking of partners Logistics

and suppliers; controlling unit level
the tariff evolution over a
long period of time;
measuring the results of the
win-win initiatives
Table I. Source: Case Company (2005b)

Logistics Business Business

organization divisions divisions

Logistics Working
Lead time
network capital

Logistics
organization

Freight and
handling
Figure 6. costs
Proposal for the division
Supply chain
of the case company’s
management
future supply chain
management Business
responsibilities divisions

The future evolution of the roles for the logistics organization and the business division
of the case company is highlighted in Figure 7. The supply chain management on the
customer order level should belong to the business responsibilities of the business
divisions. The freight and cargo handling costs, which are normally measured in e/ton
should belong to the responsibilities of the logistics organization. The lead time reflects
the total time, which the customer orders stay in the distribution pipeline and is
measured in days. Lead time management should belong to the business divisions as
well as the working capital management. Working capital is normally calculated by
multiplying the tons of a customer’s order by the value of the customer’s order or by
the cost of capital and finally by multiplying the number of lead time days. The
logistics organization should also manage the logistics network and logistics service
providers including the warehouses in the loading and discharging ports. Furthermore,
 Steering on Supply chain
customer order number level
(business divisions)
strategy

Rail/truck Sea Rail/truck Rail/truck

transport transport transport Distribution transport 49
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

Paper Port of Port of

Customer
mill loading discharge centre
Warehouse Warehouse Warehouse Warehouse

Freight and handling costs ( /ton)

(logistics organization)

Figure 7.
Lead time (days) Case company’s evolution
(business divisions) of roles for the logistics
organization and business
Working capital (tons × value × days) divisions
(business divisions)

the mills should control the mill warehouses and the distribution centres, which are
located in an inland destination, and are controlled by the business divisions.
It is further recommend that the logistics organization should be considered as an
internal logistics service provider with a “fourth party” logistics service provider role.
In the proposed new supply chain management governance model of the case
company, the logistics organization has financial responsibility for the daily logistics
operation costs and the sales network has financial responsibility for the working
capital.
It is further recommended that the logistics organization should be the producer of
the supply chain performance data. Current logistics strategy does not include concrete
KPI, which could be used by the mills. The current key performance indicator
discussion thus better supports the logistics organization and does not provide
relevant supply chain follow up data to the business divisions.

6. Conclusions
The results from the research show that the business divisions own the problems of
capital costs, warehousing costs and customer interface. The logistics department is a
facilitator for contracting the logistics service providers. It is very clear that supply
chain thinking should be more clearly defined as a strategic target in the case
company’s logistics strategy. This can be achieved by closer co-operation between the
logistics organization and the business divisions.
The business divisions (mills and sales organization) should have a more clear
supply chain management responsibility in the future. The logistics department
should be seen as a fourth party logistics service provider/company that sells services
to the business divisions. The case company should move the supply chain
management from a fragmented management model to an internally integrated
management model, where the operational roles are located only in two organizational
 IMDS units. The head office logistics organization could be responsible for all the processes
from mill dispatching until the orders arrive at the discharging port. The local sales
109,1 and logistics organization at the discharging port would then have operational
responsibility from the discharging port to the final customer.
The proposed organizational issues would most probably simplify the roles of the
logistics organization and business divisions for supply chain management.
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

50 The streamlining of the responsibilities also naturally leads to the better efficiency
of the supply chain management and to lower delivery costs, which would improve the
competitiveness of the analyzed case company. The operational KPIs should be
developed so that the business divisions could have better tools for controlling the lead
time and working capital. The driver for development in this direction should be the
logistics organization.
The analyzed case company’s paper mills are located in Finland, where the delivery
distance to the markets is very long. Analyzing the supply chain strategy
implementation in a market, where the delivery distance from the mills to customers
is less than eight hours would obviously bring new understanding to the supply chain
strategy implementation for the case company.
The behaviour of the paper industry supply chains, including their strategic
aspects, has not been broadly researched globally. Thus, it would be most interesting
to make a benchmarking study between the paper industry supply chains and the steel
industry supply chains.

References
Adams, S.M., Sarkis, J. and Liles, D. (1995), “The development of strategic performance metric”,
Engineering Management Journal, Vol. 7 No. 1, pp. 24-32.
Armistead, C. (1996), “Principles of business process management”, Journal of Managing Service
Quality, Vol. 6 No. 6, pp. 48-52.
Attaran, M. and Attaran, S. (2007), “Collaborative supply chain management, the most promising
practice for building efficient and sustainable supply chains”, Business Process
Management Journal, Vol. 13 No. 3, pp. 390-404.
Bensaou, M. (1999), “Portfolios of buyer-supplier relationships”, Sloan Management Review,
Vol. 40 No. 3, pp. 35-44.
Carbonara, N., Giannoccaro, I. and Pontrandolfo, P. (2002), “Supply chains within industrial
districts: a theoretical framework”, International Journal of Production Economics, Vol. 76,
pp. 159-76.
Case Company (2002), Strategy Template, August 8.
Case Company (2005a), Annual Report 2005.
Case Company (2005b), Logistics Strategy 2005.
Case Company (2005c), Completed Interview, Senior Vice President Corporate Development,
September 25.
Case Company (2005d), Completed Interview, Senior Vice President Logistics, September 25.
Case Company (2005e), Completed Interview, Manager, Customer Service Development, January 12.
Cassivi, L. (2006), “Collaboration planning in a supply chain”, Supply Chain Management:
An International Journal, Vol. 11 No. 3, pp. 249-58.
CEPI (2006), Key Statistics 2006 – European Pulp & Paper Industry, Confederation of European
Paper Industries, available at: www.CEPI.org (accessed January 5, 2008).
 Cooper, M.C. and Ellram, L.M. (1993), “Characteristics of supply chain management and the Supply chain
implications for purchasing and logistics strategy”, International Journal of Logistics
Management, Vol. 4 No. 2, pp. 13-24. strategy
Cooper, M.C., Ellram, L.M., Gardner, J.T. and Hanks, A.M. (1997), “Meshing multiple alliances”,
Journal of Business Logistics, Vol. 18 No. 1, pp. 67-89.
Dale, D. (1999), Managing Quality, Blackwell Press, London.
51
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

Doran, D. (2002), “Manufacturing for synchronous supply: a case study of Ikeda Hoover Ltd”,
Integrated Manufacturing Systems, Vol. 13 No. 1, pp. 18-24.
Dunne, A.J. (2008), “The impact of an organization’s collaborative capacity on its ability to
engage its supply chain partners”, British Food Journal, Vol. 110 Nos 4/5, pp. 361-74.
Esposito, E. and Passaro, R. (1997), “Material requirement planning and supply chain at Alenia
Aircraft”, European Journal of Purchasing & Supply Chain Management, Vol. 3 No. 1,
pp. 43-52.
FFIFF (2005), Finnish Forest Industry Facts and Figures – FFIFF 2005, FFIFF, Helsinki, May.
Finnish Forest Industries Yearbook 2007 (2007), Finnish Forest Industries, available at: www.
forestindustries.fi (accessed January 5, 2008).
Fontenot, R.J. and Wilson, E.J. (1997), “Relational exchange: a review of selected models for a
prediction matrix of relationship activities”, Journal of Business Research, Vol. 39 No. 1,
pp. 5-12.
Friis Olsen, R. and Ellram, L.M. (1997), “A portfolio approach to supplier relationships”,
International Marketing Management, Vol. 26 No. 2, pp. 101-13.
Ganeshan, R., Boone, T. and Stenger, A.J. (2001), “The impact of inventory and flow planning
parameters on supply chain performance: an exploratory study”, International Journal of
Production Economics, Vol. 71, pp. 111-8.
Gentry, J.J. (1996), “Carrier involvement in buyer-supplier strategic partnership”, Logistics
Information Management, Vol. 9 No. 6, pp. 54-61.
Hamel, G.D. and Prahalad, C.K. (1989), “Collaborate with your competitors – and win”, Harvard
Business Review, January/February.
Holmberg, S. (2000), “A system perspective on supply chain measurements”, International
Journal of Physical Distribution & Logistics Management, Vol. 30 No. 10, pp. 847-68.
Hughes, J., Ralf, M. and Michels, B. (1998), Transform Your Supply Chain, International
Thomson, London.
Kampstra, R.P., Ashayeri, J. and Gattorna, J.L. (2006), “Realities of supply chain collaboration”,
The International Journal of Logistics Management, Vol. 17 No. 3, pp. 312-30.
Keebler, J.S., Nabrodt, K.B., Durtsche, D.A. and Ledyard, D.M. (1999), Keeping Score: Measuring
the Business Value of Logistics in the Supply Chain, Council of Logistics Management, Oak
Brook, IL.
Koskinen, P. and Hilmola, O.-P. (2008), “Supply chain challenges of North-European paper
industry”, Industrial Management & Data Systems, Vol. 108 No. 2, pp. 208-27.
Kumar, A. and Motwani, J. (1995), “A methodology for assessing time-based competitive
advantages of manufacturing firm”, International Journal of Operations & Production
Management, Vol. 15 No. 2, pp. 36-53.
Kumar, N. (1998), “Interdependence, punitive capability, and the reciprocation of punitive actions
in channel relationships”, Journal of Marketing Research, Vol. 35, pp. 225-35.
Lambert, D.M., Emmelhainz, M.A. and Gardner, J.T. (1996), “So you think you want a partner?”,
Marketing Management, Vol. 5 No. 2, pp. 24-33.
 IMDS Lambert, D.M., Emmelhainz, M.A. and Gardner, J.T. (1999), “Building successful logistics
partnership”, Journal of Business Logistics, Vol. 20 No. 1, pp. 165-81.
109,1 Lamming, R.A. (1994), Review of the Relationship Between Vehicle Manufacturers and Suppliers,
Department of Trade and Industry, London.
McAdam, R. and McCormack, D. (2001), “Integrating business processes for global alignment
and supply chain management”, Business Process Management Journal, Vol. 7 No. 2,
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

52 pp. 113-30.
Maheshwari, B., Kumar, V. and Kumar, U. (2006), “Optimizing success in supply chain
partnerships”, Journal of Enterprise Information Management, Vol. 19 No. 3, pp. 277-91.
Moody, P.E. (1993), Breakthrough Partnering: Creating a Collective Enterprise Advantage,
Omneo, Essex Junction, VT.
Popp, A. (2000), “‘Swamped in information but starved of data’: information and intermediaries
in clothing supply chains”, Supply Chain Management: An International Journal, Vol. 5
No. 3, pp. 151-61.
Sako, M. (1992), Prices, Quality and Trust: Inter-firm Relations in Britain and Japan, Cambridge
University Press, Cambridge.
Sharma, A. and Sheth, J.N. (1997), “Relationship marketing: an agenda for inquiry”, Industrial
Marketing Management, Vol. 26 No. 2, pp. 87-9.
Sheth, J.N. and Parvatiyar, A. (Eds) (2000), Handbook of Relationship Marketing, Sage, Thousand
Oaks, CA.
Simatupang, T.M. and Sridharan, R. (2005), “An integrative framework for supply chain
collaboration”, The International Journal of Logistics Management, Vol. 16 No. 2,
pp. 257-74.

Further reading
Yin, R.K. (1981), “The case study crisis: some answers”, Administrative Science Quarterly, Vol. 26,
pp. 58-64.

Corresponding author
Pekka Koskinen can be contacted at: pekka.koskinen@confideaconsulting.com

To purchase reprints of this article please e-mail: reprints@emeraldinsight.com

Or visit our web site for further details: www.emeraldinsight.com/reprints
 This article has been cited by:

1. Yinan Qi, Baofeng Huo, Zhiqiang Wang, Hoi Yan Jeff Yeung. 2017. The impact of operations and supply chain
strategies on integration and performance. International Journal of Production Economics 185,
162-174. [Crossref]
2. Bernardo Balboni, Harri Terho. 2016. Outward-looking and future-oriented customer value potential management: The
sales force value appropriation role. Industrial Marketing Management 53, 181-193. [Crossref]
Downloaded by UNIVERSITY OF MANAGEMENT AND TECHNOLOGY LAHORE At 03:32 27 March 2019 (PT)

3. Zhuo Dai, Hongmei Dai. Multi-objective fuzzy design of forestry-paper supply chain network 146-150. [Crossref]
4. Wai Ming Cheung, Vedant Pachisia. 2015. Facilitating waste paper recycling and repurposing via cost modelling of
machine failure, labour availability and waste quantity. Resources, Conservation and Recycling
101, 34-41. [Crossref]
5. Esa Hämäläinen. 2015. Estimated impacts of the sulphur directive on the Nordic industry. European
Transport Research Review 7:2. . [Crossref]
6. Jan Olhager, Sebastian Pashaei, Henrik Sternberg. 2015. Design of global production and distribution networks.
International Journal of Physical Distribution & Logistics Management 45:1/2, 138-158. [Abstract]
[Full Text] [PDF]
7. Wihdat Djafar, Yousef Amer, Sang-Heon Lee. 2015. Models and Optimisation Techniques on Long
Distribution Network: A Review. Procedia Manufacturing 2, 519-526. [Crossref]
8. Mohsen Rajabi, Alireza Bolhari. Business Transformations 61-86. [Crossref]
9. Olli-Pekka Hilmola, Esa Hämäläinen, Maija Hujala. 2014. Paper mill's distribution efficiency to emerging East
European markets. Industrial Management & Data Systems 114:8, 1144-1168. [Abstract] [Full Text] [PDF]
10. James A. Scott, William Ho, Prasanta K. Dey. 2013. Strategic sourcing in the UK bioenerg y industry.
International Journal of Production Economics 146:2, 478-490. [Crossref]
11. Esa Hämäläinen, Ulla Tapaninen. 2010. Economics of a Nordic paper mill: case study. Industrial
Management & Data Systems 110:1, 5-23. [Abstract] [Full Text] [PDF]
12. Kuang‐ Hsun Shih, Hsu‐ Feng Hung, Binshan Lin. 2009. Supplier evaluation model for computer auditing and
decision‐ making analysis. Kybernetes 38:9, 1439-1460. [Abstract] [Full Text] [PDF]
13. Maija Hujala, Olli‐ Pekka Hilmola. 2009. Forecasting long‐ term paper demand in emerging markets.
foresight 11:6, 56-73. [Abstract] [Full Text] [PDF]