Optimising complex value chains: Forestry and Wood Sourcing
Forestry and wood sourcing value chains are complex and involve a multitude of factors that can impact both efficiency and financial performance. These factors include forest management practices, planning to various time horizons, data and information flows, IT systems as well as in-field operations and wood logistics. In many cases, data collection and utilisation is uneven throughout the forest value chain, with some sections usually much more advanced in terms of collecting and leveraging relevant operational data for visibility, planning and optimisation.
A logical first step towards improving overall status of any value chain is a diagnostic assessment. A diagnostic assessment aims to identify areas and actions which have the largest potential to add or increase value. Experts at AFRY use digital tools to collect and analyse operational data, forming the basis for simulations and optimisation as well as the use of advanced modelling tools for deeper evaluation and value potential quantification across various cases or approaches. Understanding the whole forest value chain can also provide context to approaches in evolving markets.
Diagnostic analysis can be followed by a redesign of systems and processing, followed by implementation planning. We support our clients in identifying and setting up real time reporting systems that provide visibility, which make it possible to measure and monitor the right indicators, based on real life data, and follow progress in improvements.
It is perhaps easy to see how operational excellence in forestry and wood supply value chain can deliver benefits in forestry, harvesting and transport operations. In areas where benefits may not be so obvious, such as forest management practices, availability and quality of data, planning processes and optimisation, experience suggests significant additional value creation potential.
Organisations’ forestry and wood supply chains have different or multiple objectives depending on their business targets, which can range from optimising for delivered wood cost at mill or average value of the wood assortments produced to total biomass output over time or CO2 sequestration. For any organisation, it is important to aspire to maximised value creation potential over time. Optimising operational performance is one key to this.
AFRY has extensive experience in operational excellence and continuous improvement projects with a track record of over 200 initiatives globally. Our operational excellence experts help clients generate rapid, significant and sustainable financial returns. Our Smart Forestry offering provides tools for operational excellence throughout the forest and wood supply value chain.