SCA operates in an intensely competitive market
and a continuous focus on cost efficiency is vital
to ensure continued competitiveness. Reducing
costs and increasing capital efficiency generates
improved cash flow and value creation.
Improved capital efficiency, lower costs and strengthened cash flow are achieved through restructuring, efficiency enhancement, savings measures and optimisation of capital employed in all parts of the Group.
"As a rule, more efficient production also yields positive environmental effects and lower costs."
As a rule, more efficient production also yields positive environmental effects and lower costs. One example of this is the 1,700 small-scale energy-saving activities carried out by the Group in recent years, resulting in a reduction in carbon dioxide emissions and annual savings of about SEK 700m.
SCA leverages synergies between operations and improves productivity and the supply chain, while it also discontinues non-competitive units. Global functions in the hygiene operations relating to, among other areas, innovation and brand activities, as well as production, generate cost synergies and enable efficient resource allocation.
Examples of activities and results in 2011:
- Efficiency programme in hygiene and packaging operations
- Reorganisation in hygiene business
- Improved productivity and efficiency combined to increase capital efficiency