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Logistics at UPM

Reliable logistics, excellent customer service and a dedication to more sustainable transportation are essential to building our supply chain and long-term relationships with our partners and suppliers.

Logistics play a vital role in our supply chain. Each year, we transport and receive millions of tons of raw materials and goods by sea, rail and road. Some logistics operations are owned and operated by us, while others are outsourced to trusted partners. Most UPM production facilities have direct rail connections, which are used efficiently for both incoming raw materials and outgoing product shipments.

Transportation has environmental impacts. Our goal is to build and maintain responsible, efficient logistics systems that not only meet today’s needs, but also strengthen our supply chain for the future. We do this by building long-term partnerships based on reliability and trust.

We significantly reduce the environmental impact of our logistics operations by optimizing routing, prioritizing rail and maritime transport, and using low-emission fuels. We invest in the latest innovations, including digitalized and automated logistics solutions, to increase efficiency and reduce costs.

We invest in the latest innovations, including digitalized and automated logistics solutions, to increase efficiency and reduce long-term costs.

Safety comes first

Emission reductions on-site

Consignment stocks

We use consignment stocks in intermediate warehouses to ensure fast and reliable deliveries while reducing the need for frequent transportation.

Volume concentration and port consolidation

Volume concentration and port consolidation support the use of rail transport and enable higher shipping frequency, securing economies of scale and maximizing volume leverage.

On-site logistics

On-site logistics, including intermediate storage, reduces the need for additional transport and helps reduce emissions.

Maritime transport

We drive innovation in sea traffic by leveraging the latest technologies and digitalization. We reduce emissions in maritime transportation in close collaboration with our supplier network.

Railway transport

We prioritize railway and multimodal transportation whenever possible to enhance safety, security and efficiency. Increasing the use of rail transport is critical to achieving our emissions reduction targets.

Transporting goods by rail directly to ports reduces the need for road transportation. We use this approach in various markets for both inbound and outbound flows, as well as for raw materials and finished products.
Whenever possible, we take advantage of modern hybrid diesel-electric locomotives to further minimize our environmental impact.
We are increasing the use of biofuels and other sustainable energy sources in rail transportation in collaboration with our partners.

Road transportation

Road transportation is essential for the first and last mile delivery from mill to customer. While our road transport volume is significant, we strive to minimize its environmental impact.

We are continuously working to reduce emissions by replacing traditional diesel with renewable biofuels.
In Finland and Germany, we are committed to further expanding the use of electric trucks.
We use more efficient diesel trucks, full truck loads, and bigger trucks to improve fuel economy and reduce our overall environmental impact.
Where possible, we deploy and develop high-capacity transportation (HCT) solutions to enhance logistics performance and reduce environmental impact.

EcoVadis

Case: Plywood is transported using more renewable diesel

Using renewable diesel for rail transport reduces carbon dioxide emissions by 24%, as demonstrated by a cooperation between UPM Plywood and Finnish railway operator VR. In addition, UPM Pellos plywood mill has improved its rail transport operations by increasing train load capacity and improving traction efficiency.

Working towards mutual goals

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Decarbonizing the supply chain

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