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SP Newsprint Keeps the News Presses Rolling
For most people, old newspapers are something to get rid of. For Vic Springer, old newspapers are something worth collecting – by the tons. In fact, it’s Springer’s job to make sure there is a steady flow of old newspapers to two of the largest newsprint mills in the country which in turn create newsprint for newspapers.
Springer is in charge of all logistics and supply chain for SP Newsprint Company which is owned by White Birch Paper Company. Headquartered in Atlanta, Georgia, SP Newsprint Company operates large newsprint mills in Dublin, Georgia, and Newberg, Oregon with a combined annual newsprint production of almost one million tons.
Old newspapers provide the primary fiber used for newsprint production, with almost one million tons consumed annually. The Dublin mill uses old newspapers exclusively as its fiber source, while the Newberg mill uses both old newspapers as well as wood fiber.
For sourcing of old newspaper, the company relies on SP Recycling, a wholly owned subsidiary of SP Newsprint, which is responsible for all fiber procurement for the two mills. SP Recycling collects old newspapers through its 23 recycling divisions, which operate in southeast United States, as well as from other outside sources.
Springer’s responsibilities for all of this include managing a $60 million freight budget representing a little less than 10 percent of the company’s $650 million in annual sales.
“I’m basically responsible for everything that goes in and everything that goes out,” says Springer. “Of course in this business, the challenges abound.”
Old newspaper comes into the plants by the tons as bales or loose. The looser the paper the better because it means the paper is fresher requiring less chemicals to process which minimize costs and increase efficiencies.
“Our challenge is to create and manager a delicate balance between bales and loose supply which dramatically affect our inbound and outbound flows,” said Springer.
Even with 45% of old newspaper supplied by their subsidiary company, Springer still has dozens of suppliers providing raw materials for the plants which means lots of precision logistics and planning to make production work with optimum efficiency.
“We have some of the best operating, most productive paper running machines in the industry which makes for a very efficient and quality production, but the finished product has to go some where,” says Springer. “So we have to be very efficient in how things get moved in and out of our mills.”
Even with 17 acres of warehouse space under roof in one of the mills, there is still limited warehouse space in both mill locations to handle the large volume of raw and finished product which require very precise logistics management.
Additionally, Springer says changing shipping patterns in the domestic market because of global demands require extra diligence in understanding and responding to transportation market dynamics.
With its plants on opposite coasts of the country, SP Newsprint’s incoming and outgoing product has a great distance to travel. At the Dublin mill, the average length of haul is 375 miles while the Newberg mill on the west coast has an average length of haul of 980 miles.
Springer utilizes a variety of transportation modes to handle his logistics needs including OTR, box car, intermodal and drayage. The Dublin plant has a private fleet
of 100 rail cars.
Additionally, the company has a growing export business to Asia, India and the Middle East. Most of the export business is shipped through the Port of Seattle and Tacoma which Springer oversees. The company’s exports amount to about 15% of its total production.
“Transportation is the fourth largest cost for our business, behind materials, people and energy,” said Springer. “So it’s very important that it is managed well.”
Springer says an important part of effectively managing the transportation for SP Newsprint is having resources like Total Transportation Services agent Jacque Scott as a trusted provider of transportation services.
Scott operates a Louisville, Kentucky-based TTS transportation agency. Her operation offers a variety of transportation management services including LTL, intermodal, truck load, drayage and car load services, throughout North America to companies like SP Newsprint.
“TTS gives us the ability to access all kinds of mode options as needed, quickly and efficiently,” said Springer. “And they are great at customer service.”
One of the areas Scott’s agency has offered significant help to SP Newsprint is in drayage where drivers are domiciled in Georgia to handle the short haul needs for the SP Newsprint’s Dublin plant.
“With Jacque and TTS, all our needs are handled by a single contact,” said Springer. “Our people only have deal with one person who manages our entire account.”
“TTS is a company where everyone knows you and really care about your business and your success,” he said. “That’s my idea of a great vendor.”
“And TTS can really do anything I ask for – whether it’s intermodal, box car, truck, freight forward, drayage – they are very flexible and accommodating to all our needs,” he added.
Springer says he and Scott are like minded in they way they do business which makes for a great partnership and for long term success for everyone.