M-real was the first of three companies to activate PPConnect on 27 May, followed by UPM and Stora Enso.

"This will provide greater efficiencies and reduces costs in our direct and indirect purchasing," said M-real's assistant vice president for corporate purchasing, Risto Pyhlt.

Pyhlt said costs would be saved on the purchasing of items such as pigments, chemicals, consumables and office materials.
He also predicted that M-real's UK mills at Sittingbourne and New Thames would both go live with PPConnect later this year.

PPConnect has been in development since 2000, with 16 European pulp and paper companies signed up to the initiative.

Norwegian-based purchasing services provider IBX, whose clients include Ericsson and Volvo, developed the system.

"The main driver for the pulp and paper companies is to make their procurement processes more efficient," said IBX marketing director Peter Lageson.

IBX has sub-contracted supplier relationship management tools provider cc-hubwoo to be its development partner in providing e-procurement services.

In the next few months, a PPConnect summit will take place which will present the concept and case studies from the respective pulp and paper companies.

Lageson said he expected more pulp and paper companies to sign up to the PPConnect inititative after the summit, and start their own e-procurement initiatives.

Story by Andy Scott