TAILIEUCHUNG - A Study of the MRO Supply Chain for Paper Mills

With particular respect to environmental product innovations, we find that a large ma- jority of facilities in these OECD countries report that their measures are aimed at production processes and not so much at products to reduce environmental impacts. While pollution problems have been mastered quite successfully through the use of cleaner processes at the production site, product-integrated environmental innovations still seem to suffer from poor market incentives. Our estimation results based on a binary probit model indicate that the de- terminants of environmental product innovations are quite similar to those of process innova- tions. This might be explained by the. | A Study of the MRO Supply Chain for Paper Mills Final Research Report Presented to the Center for Paper Business and Industry Studies CPBIS Faculty Yih-Long Chang College of Management Georgia Tech Cheryl Gaimon College of Management Georgia Tech Soumen Ghosh College of Management Georgia Tech Vinod Singhal College of Management Georgia Tech Graduate Students Carrie Crystal College of Management Georgia Tech Patty Swafford College of Management U. of Texas - Arlington September 2004 ABSTRACT The primary objective of our research was to study and understand the key characteristics of the portion of the supply chain focused on maintenance repair and operating supplies MRO for paper mills. More specifically in the context of the MRO supply chain for paper mills our goals were 1 to develop an understanding of current practices including the challenges of integrating supply chains across organizations 2 to gather information on the primary drivers of supply chain performance 3 to identify areas providing opportunities to improve the effectiveness and efficiency of the supply chains and 4 to identify specific initiatives to improve supply chain performance. To achieve the above goals we collected data from field site visits as well as a comprehensive mail survey. The site visits provided valuable insights that enabled us to understand current MRO supply chain practices. Moreover the site visits helped us to hone in on the appropriate measures of supply chain performance and the primary drivers of MRO supply chain performance. With much effort we have collected a limited number of responses from the survey. It is not as big a sample as we would hope however it gives us a statistical foundation to glean insights from the survey and field data on several important dimensions. In general and based on this research we see promising trends for the management of the MRO supply chain in the paper and pulp industry. One key insight we have is that firms are both reducing the .

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