Supplier Profile and Purchase spend

• 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

Critical Suppliers

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.

Suppliers in numbers

Direct spend, number of suppliers: 5.800 suppliers

Direct purchase spend, SEK: SEK 44,000m

Indirect spend, number of suppliers: 21.200 suppliers

Indirect purchase spend, SEK: SEK 19,000m

Purchases by Spend Category (raw materials)

Our purchase of raw materials equals approximately SEK 26,500m, with pulp being the largest spend category and representing 37% of total raw material spend. Paper- and polymer-based materials represent 36% of total raw material spend and includes e.g. plastic and fiber-based packaging, nonwovens, plastic films. Chemicals and recovered equals 15% and 12% respectively.

Purchases by Geography (raw materials)

As for geographical distribution of the total raw materials spend, approximately SEK 20,000m (76%) of total purchase spend of raw materials comes from suppliers located in Europe. Over half of our production facilities are located in Europe, whereof several of the key sites, the largest sites with most purchasing spend. 

Purchases into North and South America stands for SEK 4,600m (18%) and SEK 1,700m (6%) respectively.