Sandvik outsourced the in-house logistics of its Turku facility to Transval – material flow optimization, development of logistics processes and improved efficiency as key criteria

12.08.2020

Sandvik Load and Haul Division, a Turku-based global loading and hauling equipment manufacturer that serves the mining industry, concluded an agreement with Transval concerning the facility’s in-house logistics. In the business transfer, about 30 people from Sandvik will now be employed by Transval as part of the agreement. Some of the logistics equipment will also become the property of Transval. The companies have not disclosed the value of the agreement.

From September 1, 2020, Transval will be responsible for receiving, picking and delivering the material at the Turku facility into production as well as transporting products and materials. The cooperation is based on Sandvik’s need for developing and improving the efficiency of its logistics. The in-house logistics of industry, factories and production facilities is Transval’s core competency.

“We are focusing on our core competencies, designing, manufacturing, marketing and servicing mining equipment, and that is why we have chosen Transval as our logistics partner. They have the needed competencies in digitalization, and automation. Additionally, they can improve the efficiency of in-house logistics and real-time logistics management. Outsourcing in-house logistics enables us to improve our delivery accuracy, increases cost-effectiveness and, consequently, boosts our competitiveness,” says Mats Eriksson, Managing Director of Sandvik Mining and Construction Oy.

“At Transval, we are very proud to have been chosen by Sandvik as their logistics partner. I warmly welcome our new personnel to Transval. I believe that we can offer them new insight and knowledge in the field of in-house logistics. We also believe that, through our expertise, digital solutions and efforts to improve the usage of Lean Six Sigma methods, we can develop Sandvik’s logistics and create significant cost savings in logistics,” says Jussi-Pekka Hoskari, Business Director of Transval’s Industrial Services.

It is important that there is no unnecessary downtime in the assembly of machines that are worth millions, such as while waiting for materials. Transval will ensure the optimal flow of materials and information and the quantity and quality of logistics equipment at Sandvik’s facility.

“We have developed our own Dock to Stock tool that provides us with real-time information about when and what material transport companies have delivered to the facility and the flow of the material inside the facility. Using this information, we will design and implement task queues, which are visual illustrations of the logistics processes,” says Hoskari.

The information provided by the Dock to Stock tool will also be submitted to Sandvik in real time. The tool allows for monitoring the processing flow of materials and goods provided and delivered by suppliers and using the retrieved information to instruct the suppliers in packaging or placing the materials on pallets so that they can be unloaded and processed as quickly as possible.

Further information for media representatives:

Mats Eriksson, Managing Director, Sandvik Mining and Construction Oy, tel. +358 (0)40 035 8982, mats.a.eriksson@sandvik.com
Transval and Posti MediaDesk, tel. +358 (0)20 452 3366 (Monday to Friday 9:00 a.m. – 4:00 p.m.)

Sandvik Group is a high-tech and global engineering group offering products and services that enhance customer productivity, profitability and safety. We hold world-leading positions in selected areas – tools and tooling systems for metal cutting; equipment and tools, service and technical solutions for the mining and construction industries; products in advanced stainless steels and special alloys as well as products for industrial heating. In 2019, the Group had approximately 40,000 employees and sales of 100 billion SEK in more than 150 countries within continuing operations.

Approximately 2100 people are employed in Finland. Sandvik employs 1400 people in Tampere, 650 in Turku, 150 in Lahti. Over 95% of the equipment manufactured in Finland is exported. The Sandvik Turku site manufactures underground loaders and dump trucks for construction and mining industries, where operates competence and electrification centers for Load and Haul operations.

Transval is the Finnish market leader in logistics outsourcing. We serve approximately 500 customers in Finland and the Baltic countries on the customers’ own premises, such as warehouses, terminals, manufacturing plants and shops. We change in-house logistics’ fixed costs into variable costs and offer customers functional flexibility, better quality and significant cost savings. The company is more than 25 years old and employs around 4,800 people. Our services comprise supply chain solutions from transport to warehousing, in-house logistics solutions delivered at the customer’s premises and human resource services by highly-qualified logistics professionals. Our subsidiary, KV Turva, serves the commercial sector by providing remote monitoring, stock shrinkage management and security guard/salesperson services. Transval is completely owned by Posti Group.