The main purpose of this thesis is to improve the environmental stone business at K-Rautapohja Oy. The main aim is to create a definite, efficient and effective supply chain, so as to improve the stone business productivity. The study was approached by interview and data collection for the development task.

The study discovered that there is need for improvements, especially filling the customer request. A well definite value chain should be available having in mind the suppliers, transportation, warehousing and the different types of customers. Elimination of non-value added movement should be done for better productivities. By developing the supply chain phases, the success of the improvement of the stone business will be attained.

The method used in this study is interview with the case company's vice president and the shop floor workers. The theoretical framework is based on the literature related to the field of study identifying possible solutions for maximizing the overall process to generate value.

The thesis result offers the case company an efficient value chain and ways to improve the productivity of the stone business in the new warehouse.