Iggesundsbruk AB i a part of Holmen Corporation. The company is producing paperboard and is located in Iggesund in Hälsingland. As a result of an increasing demand from customers the company has been investing in increasing the capacity of one of the two paperboard machines. The aim is to be able to satisfy the needs of the customers. It is mainly on the Eastern European market where the company's sales are raising. The company has not any warehouse in Eastern Europe which is the case of the Northern European market. The consequences of that is that the goods that is dedicated to Eastern Europe are causing high stock levels at the terminal of the company in Iggesund. Moreover, the customers in Eastern Europe are less punctual when it comes to the agreed loading dates. This variation in the outbound deliveries is contributing to the higher stock levels at the company's terminal in Iggesund. The purpose of this exploratory research is to identify the reason for the high stock levels at Iggesundsbruk and to give suggestions on how those stock levels can be reduced. The author has during this case study had five formal interviews and also many more informal ones. Furthermore the author has made a benchmarking between Iggesundsbruk and Stora Ensos factory in Fors. The units which were benchmarked were the Packaging and Sorting processes at the both production units. After making the analysis of the internal and external product flows which have impacts on the stock levels the author has came to the conclusion that there are no bigger possibilities to impact the customers behavior on the short term horizon. However there are possibilities for the internal flows at the factory to be more optimized. It is especially the Packaging and the sorting process which can be improved in order to remove the bottlenecks which those two products are can become where there is a high flow of products from the two paperboard machines. Additionally the author considers even the production planning and distribution processes to have impact on the stock levels. For that reason, the author suggests that two sepa-rate studies to made in order to investigate those two areas since the production planning and distribution process are outside the scope of this study.