Toggle main navigation Section navigation Investors Financial information Profitability improvement Profitability improvement In this section you can find information on Valmet's actions for improving profitability, quality costs and procurement savings. Continued focus on improving profitability Valmet continues to focus on improving profitability through various actions in e.g. sales process management, project management and project execution, in procurement and quality, as well as in technology and R&D. To improve sales process management, Valmet is focusing on key account management and analyzing the customers’ share of wallet. Valmet is targeting market share improvement at key customers and adding focus on sales training. Valmet has also launched ‘Valmet Way to Serve’ services concept – a shift towards more unified and customer-oriented services. Valmet is continuously improving its project management and project execution by training personnel and implementing a Valmet-wide project execution model. By focusing on improving project management and execution, Valmet is targeting continuous improvement of gross profit. Valmet has set a long-term savings target for procurement. In order to decrease procurement costs, Valmet is focusing on design-to-cost and adding supplier involvement through supplier relationship management. Valmet has also set a target for quality cost savings and is adding focus on root cause analysis of quality deviations. Furthermore, Valmet is continuing to adopt the Lean principles and methodology. Valmet is constantly focusing on new technologies and R&D to improve product cost competitiveness and performance. The renewal of Valmet’s ERP system will increase efficiency once implemented. Quality costs Quality costs (EUR million and % of net sales) In order to reduce quality costs and lead times Valmet is implementing Lean. Implementing Lean is expected to improve efficiency and reduce waste. A common quality development approach, together with different quality tools and processes help reduce quality costs and lead times. In order to affect quality costs and lead times, it is also important to highlight the importance of quality initiatives and accountability. Procurement Implemented procurement savings of annual direct spend Valmet has some 10,000 active direct suppliers from more than 50 countries. However, approximately half of our purchases come from Finland and Sweden when measured by supplier spend. Our purchases mainly comprise metals-based products and electronic components and services from suppliers in the pulp, paper and energy industries. To improve profitability, Valmet also focuses on procurement savings. These can be achieved by increased sourcing from cost-competitive countries, increased use of sub-contracting, by strengthening innovative supplier co-operation, and by consolidating the shipment and warehouse network. ^Top Updated; Oct 27, 2021 Pulp Complete pulp mills Chemical pulping Wood handling Cooking and fiber line Pulp drying and baling Chemical recovery Air emission control New value-adding processes Dissolving pulping Mechanical pulping Recycled fiber Automation for pulp Services for pulp Fiber Technology Center Pulp references Pulp news and stories Board and paper Recycled fiber Stock preparation Board and paper machines Services for board and paper Automation for board and paper Industrial Internet Service Centers References Board and paper news and stories Search for products & services Tissue Complete tissue mills solutions Machine sections and rebuilds Development and pilot trials Services for tissue producers Automation for tissue References Industrial Internet Tissue Talks Insight Sustainability Learning services Tissue News Tissue Talks Contact Tissue Local websites 中文 - Chinese Suomi - Finnish Français - French 日本語 - Japanese Português - Portuguese Pусский - Russian Español - Spanish Svenska - Swedish ไทย - Thai Australia & New Zealand North America Deutsch - German Energy Energy solutions BFB Boiler CFB Boiler Gasifier Power plants Heating plants Air emission control Industrial Internet solutions Services for energy Automation for energy Technology development Energy news and stories More industries Alternative fuels Biofuels and biomaterials Chemical industry Fiberboard Filtration Food industry Laundry industry Marine Minerals and metals Nonwovens Oil and gas Wastewater Paper converting Pharmaceutical industry Petrochemical industry Automation Distributed control system Industrial applications Quality management Analyzers and measurements Condition monitoring Industrial Internet Automation projects Automation services About Us Valmet in brief Contact us Strategy Management Code of Conduct Careers Research and development Procurement Valmet's value creation Translate Valmet product names Industrial Internet Valmet Customer Portal Learning Services Service centers References Investors Valmet as an investment Reports and presentations Sustainability for investors Valmet share Shareholders Governance Financial information Events and calendar Investor relations Sustainability Sustainability at Valmet Sustainable supply chain Health, safety and environment People and performance Sustainable solutions Corporate citizenship Climate program Circular economy Sustainability reporting Media News Articles Customer magazine Blogs Podcasts Newsletters Social media Events calendar Media contacts Image gallery Video gallery Downloads Services Services for board and paper production Services for pulp production Services for tissue making Services for energy FOLLOW US Sitemap About this site Legal notice Trademarks Privacy notice Cookie preferences Contact us Social media © 2021 Valmet We use cookies and 3rd party solutions to optimize site functionality and give you the best possible experience while browsing our site. 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