SUPPLY CHAIN

The objective of the supply chain is to produce high-quality products from the raw materials defined by the research and development, and deliver them to the customers in an economical, safe, and eco-efficient manner. Above all, we want to make sure that we provide quality service, in other words ensure the timely deliveries of our products to the sales points.

Tikkurila has 11 production units in 8 countries. Decorative paints are made in Finland, Sweden, Russia, Poland, Estonia, Kazakhstan, Denmark and Germany. Industrial wood and metal coatings are produced in Finland, Poland and Russia. Approximately half of Tikkurila’s personnel work in the supply chain.



The supply chain is responsible for demand planning, procuring raw materials and packaging materials, production and logistics. In addition, the supply chain is also actively involved in the procurement of other products and services needed in Tikkurila’s operations. Tikkurila produces almost all paints itself, with the exception of China, where Tikkurila has minor contract manufacturing.

We constantly work to develop our production processes and the resource efficiency of our production sites. Our aim is to improve the overall quality and safety of our operations, to seek cost-efficiency in production and logistics as well as decrease the amount of loss and paint waste in production.

Majority of Tikkurila’s production sites have independently audited and certified quality, environmental, and safety management systems. Our operations and operational systems are assessed in various reviews. In addition to external auditors and certification organizations, the Group HSE (Health, Safety and Environment) function sets the targets and audits the company's various sites, gives recommendations and follows up the local development work. The audits aim to promote the development of the environmental, occupational health and safety management operations.



Distribution

Tikkurila products are distributed from the production units to either warehouses for further deliveries or directly to the retailers and customers. Tikkurila has 25 distribution centers in 15 countries. In Europe, raw materials are mainly transported by road and by sea, and in Russia, mainly by road and by rail. Transportation needs and inventory quantities are optimized in cooperation with the entire supply chain to ensure that our customers receive the products on time, safely, and eco-efficiently.

The objective is to distribute products using environmentally friendly logistics. Centralizing transportation reduces costs and emissions, and improves transportation safety and efficiency. Moreover, we pay attention to optimizing cargoes and transportation routes, and to the loading of vehicles. When choosing logistics partners, among other things we place emphasis on the transportation service provider’s capabilities to adopt more environmentally friendly alternatives as well as safety aspects.