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How Industrial Shutdown Affects Transportation Logistics?

April 26, 2017affects industrial Logistics shutdown Transportation

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How Industrial Shutdown Affects Transportation Logistics?

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Paper Industry Case Study by Pekka Koskinen, Olli-Pekka Hilmola Abstract: Paper production has been one of the key drivers of Finnish welfare for six decades of time. However, during the previous years time several paper production units have been closed down. The main purpose of this article is to describe the financial and resource closing down effects on the distribution logistics service providers, and at the same to develop a financial and a resource adaptation model for estimating the closing down effects. Based on two Finnish case studies we argue that the financial consequences for the logistics service providers are significant and financially very serious. Not only revenues are being lost, but also very significant amount of transportation logistics employees are affected (accounting for 27 % of total employment of two closed mills).