Transformation of a Forest Products Player

BCG helped launch a successful four-year transformation process for a large family-owned pulp and paper producer.

PaperCo is a large pulp and paper player that wanted to increase yields, reduce costs, improve the accuracy of the data managers used to make decisions, and boost staff productivity. BCG helped the company launch a four-year transformation process that ultimately achieved all of those goals.

BCG helped establish a project team of specific industry experts and strategic external experts. Working closely with PaperCo’s senior managers, BCG designed and implemented several targeted improvement programs. To increase yields per acre, the company mechanized planting operations and began using prescriptive fertilization based on soil conditions. To reduce operational costs, BCG guided PaperCo through a supply-chain optimization process and a thorough review of contractor pricing. To improve the data received by the management team, PaperCo began using drones to assess tree growth rates in real time.

New job roles, training procedures, and incentives were established to increase staff productivity. An organizational redesign was able to reduce overall headcount by 15-20%.  

People-centered actions were able to make some “quick fixes” to priority areas while longer-term initiatives were getting underway. Some of these activities included new incentive schemes to boost employee engagement, promote leadership development, and improve organization design.

The results of the transformation effort were seen almost immediately in steadily rising cost savings. By the end of the first year of the project, about $30 million in cost savings could be attributed to just the first set of transformation initiatives. Through a structured transformation process, PaperCo has achieved all of its goals: increased yields, reduced costs, better data, and increased staff productivity.

Process Industries & Building Materials