Johannes Windisch, Lauri Sikanen, Dominik Röser, David Gritten. (2010). Supply chain management applications for forest fuel procurement – cost or benefit? Silva Fennica vol. 44 no. 5 article id 124. https://doi.org/10.14214/sf.124

Keywords: logistics; forest fuel; supply chain management; cost-benefit analysis

Abstract | View details | Full text in PDF | Author Info

It is commonly agreed that logistics is very demanding in forest fuel business. Even though logistics and supply chain management (SCM) tools already have found their way into forestry business, for example, in roundwood operations, they are not yet very widespread in the field of forest fuel procurement. The present study investigates if modern supply chain management applications are capable of increasing the profitability of forest fuel procurement operations. Since margins are low, decreasing the provision costs could boost wood-based bioenergy business. The study is based on the investigation of two Finnish forest owners associations (FOA) involved in forest fuel procurement using a modern SCM tool. The investigation is done by cost-benefit analysis (CBA) using the net present value (NPV) methodology to determine the profitability. According to the estimates made by the staff, which are based on data such as work time records and delivery notes from before and after introduction of the new system, in both FOAs, the benefits far outweigh the costs over a considered timespan of ten years. However, the amount of the NPV varied significantly. For FOA1, with an annual chip production of 150 000 loose m3, the NPV is 212 739 euro, while for FOA2, with an annual chip production of 37 000 loose m3, the NPV is 969 841 euro. Even if the NPV of FOA2 seems to be very high, the profitability of SCM tools in forest fuel procurement is clearly demonstrated. Additionally, the results indicate that a considerable cost saving potential in forest fuel procurement is attainable through improving work flows and thus reduce the work input.

Windisch, Finnish Forest Research Institute, Joensuu Research Unit, Yliopistokatu 6, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: johannes.windisch@metla.fi
Sikanen, University of Eastern Finland, School of Forest Science, Yliopistokatu 7, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: ls@nn.fi
Röser, Finnish Forest Research Institute, Joensuu Research Unit, Yliopistokatu 6, P.O. Box 68, FI-80101 Joensuu, Finland E-mail: dr@nn.fi
Gritten, University of Eastern Finland, School of Forest Science, Yliopistokatu 7, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: dg@nn.fi

article id 429, category Research article

Juho Rantala. (2004). Optimizing the supply chain strategy of a multi-unit Finnish nursery company. Silva Fennica vol. 38 no. 2 article id 429. https://doi.org/10.14214/sf.429

Keywords: economies of scale; supply chain management; optimization; mixed integer programming; seedling production

Abstract | View details | Full text in PDF | Author Info

This paper introduces a capacitated mixed integer programming (CMIP) model for solving an integrated production-distribution system design problem (PDSDP) in the seedling supply chain management (SCM) of a multi-unit Finnish nursery company. The model was originally developed from a strategic perspective in which a company desires to evaluate the expansion or closure of its facilities. Nevertheless, the model is also used for solving operational and tactical level problems by applying applicable constraints. The data were collected from the company studied. The results proved that economies of scale could be exploited in seedling production more than the company does today; Compared to the company’s current supply chain strategy with 5 nursery units producing seedlings, when other supply chain strategies were applied the number of nursery units decreased by 2–4 units, and cost savings in the supply chain varied from 11.3% to 21.3%.

Rantala, Finnish Forest Research Institute, Suonenjoki Research Station, Juntintie 154, FI-77600 Suonenjoki, Finland E-mail: juho.rantala@metla.fi

Category : Review article

article id 9984, category Review article

Christoph Kogler, Peter Rauch. (2018). Discrete event simulation of multimodal and unimodal transportation in the wood supply chain: a literature review. Silva Fennica vol. 52 no. 4 article id 9984. https://doi.org/10.14214/sf.9984

Keywords: logistics; supply chain management; forest products industry; decision support systems; validation and verification of simulation models; resilient risk management

Highlights: Focus on discrete event simulation, wood supply chain and multimodal transport; Analyses of 12 review articles and a core of 32 research papers, complemented by 48 related ones; Research focus from unimodal to multimodal transport to build efficient, resilient, green and socially sustainable supply chains; Development of robust risk management considering supply risks, demand risks and external risks is needed.

Abstract | Full text in HTML | Full text in PDF | Author Info

This review systematically analyses and classifies research and review papers focusing on discrete event simulation applied to wood transport, and therefore illustrates the development of the research area from 1997 until 2017. Discrete event simulation allows complex supply chain models to be mapped in a straightforward manner to study supply chain dynamics, test alternative strategies, communicate findings and facilitate understanding of various stakeholders. The presented analyses confirm that discrete event simulation is well-suited for analyzing interconnected wood supply chain transportation issues on an operational and tactical level. Transport is the connective link between interrelated system components of the forest products industry. Therefore, a survey on transport logistics allows to analyze the significance of entire supply chain management considerations to improve the overall performance and not only one part in isolation. Thus far, research focuses mainly on biomass, unimodal truck transport and terminal operations. Common shortcomings identified include rough explanations of simulation models and sparse details provided about the verification and validation processes. Research gaps exist concerning simulations of entire, resilient and multimodal wood supply chains as well as supply and demand risks. Further studies should expand upon the few initial attempts to combine various simulation methods with optimization.

Kogler, Institute of Production and Logistics, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna, Feistmantelstrasse 4, A-1180 Vienna, Austria https://orcid.org/0000-0001-8811-152X E-mail: christoph.kogler@boku.ac.at
Rauch, Institute of Production and Logistics, Department of Economics and Social Sciences, University of Natural Resources and Life Sciences, Vienna, Feistmantelstrasse 4, A-1180 Vienna, Austria http://orcid.org/0000-0002-5812-4415 E-mail: peter.rauch@boku.ac.at

Click this link to register to Silva Fennica.

If you are a registered user, log in to save your selected articles for later access.

Contents alert

Your selected articles

Follow @SilvaFennica