Well run organisation

Operational excellence – supply chain

At our Group, procurement of raw materials and distribution of products in Poland and abroad is the responsibility of the Corporate Procurement
Department...

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At our Group, procurement of raw materials and distribution of products in Poland and abroad is the responsibility of the Corporate Procurement Department working closely with the Corporate Logistics Department, which also together oversee the processes related to warehouse management, packaging and coordination of transport. They also set strategic objectives for logistics and manage related risks.

Managing a chain of supply of raw materials and products to and from companies located throughout Poland is for us a tremendous logistic challenge. Every year, we transport millions of tonnes of fertilizers, chemical products and raw materials. With advanced logistics solutions, we are able to optimise shipments, which translates into financial and environmental savings. Rail is the most cost-effective transport, partly provided by our own company Grupa Azoty Koltar. Sea transport is particularly profitable at Grupa Azoty Police, given its location in the vicinity of Szczecin.

Grupa Azoty S.A. is the first Polish chemical company to have deployed the modern TMS SOOT system improving its transport processes. The standard SOOT solutions have been extended to include other functionalities: communication with carriers, reporting of transport-related incidents, notification of shipments with the use of a ‘notification link’, and notification of recipients of a shipment dispatch. Further solutions and upgrades are also in the pipeline.

BEST PRACTICE

Since 2017, Grupa Azoty Police has operated a new logistics base. Worth PLN 30m, the project has enabled the company to sell more fertilizers, previously delivered to customers in bulk. Apart from enhancing the company’s commercial offering to include packaged fertilizers, including urea, the new logistics infrastructure will also generate cost benefits by reducing the need for goods awaiting loading to be transported around the premises. It is estimated to bring annual savings in the region of PLN 550 thousand.

Having our own warehouse base throughout Poland, we have also signed agreements with more than 80 distributors who operate warehouses all over the country. We comply with all storage safety standards for our products in accordance with the relevant product data sheets.

Since the procurement area was consolidated at the Group level, all key suppliers have been vetted against CSR criteria.

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