In 2021 Essity had a total purchase spend of approximately SEK 63,000m
Direct spend relates to purchases of raw materials, energy, transport and distribution and finished goods and stands for approximately SEK 44,000m
Main raw material categories are pulp, recovered paper, super absorbents, non-woven
Indirect spend corresponds to approximately SEK 19,000m, with main spend categories being machine and equipment and corporate services and marketing
We have approximately 27.000 suppliers delivering to our around 90 production facilities worldwide
The top 200 suppliers generate approximately 50% of the total purchase spend
Suppliers are classified as critical based on spend, business critical materials/services, impact on profitability, quality, exchangeability as well as supplier capabilities, such as innovation, know-how and proprietary rights. Essity identifies critical suppliers in order to create maximum internal efficiency, cost efficiency, added value and to reduce risks.
Essity has long-term commercial relationships with many of these suppliers, with close collaboration and high focus on innovations. Suppliers classified as critical corresponds to approximately 35% of our total purchase spend and includes suppliers cross several spend categories.
Description of Purchase Spend
Essity’s overall purchase spend is categorized into direct (e.g. raw materials, energy and finished goods) and indirect spend. Below are overviews of the key spend categories by value and by geographical spread.