Alternative logistics concepts fitting different wood supply situations and markets

Authors: Audy, Jean-François; Pinotti Moreira, Matheus; Westlund, Karin; D'Amours, SophieLeBel, LucRönnqvist, Mikael
Abstract: In this research project, we developed a framework for describing different wood supply chains (WSC) in a generic way and assessing their agility and tailoring capabilities. The studied WSC comprises the planning and execution, at the operational level, of all activities, from selling agreements to delivery of forest products at the mill yard. required by the environment’s uncertainties are compared and discussed. Finally, tailoring capabilities were assessed, based on the location of the decoupling points and their respective order fulfilment cycle time. Two processes were identified, where most of the product differentiation activities along a WSC occur: harvesting with the CTL method and merchandising at a roadside landing using the FT method. The capabilities to tailor product specifications are superior before rather than after one of these processes. Moreover, a typology of assortments according to the level of tailoring is provided and the financial incentive to produce a basket of assortments with a higher level of tailoring is discussed. Finally, when comparing the location of the decoupling point, the agility capabilities and the average order fulfilment cycle time, it was possible to reinforce the results from the literature, which state that supply chain agility is linked to shorter leadtime. The framework is useful to organisations interested in describing their WSC and assessing their agility and tailoring capabilities. By assessing the tailoring and agility capabilities of a WSC, the framework can support an organisation in an exercise of selfdiagnosis that leads to the identification of improvement opportunities to work on. Moreover, by assessing different scenarios for its WSC (e.g. the introduction of new technology, the addition of a new value proposition for a customer), an organisation can anticipate the impacts of changes. Finally, the framework introduced a common vocabulary to be used by researchers and practitioners in different disciplines (e.g. forest engineering, management sciences, industrial engineering). It represents an original attempt to develop a reference model for future research addressing WSCs. These include the purchase or selection of harvesting blocks, harvesting scheduling and execution, as well as transportation scheduling and execution. The framework includes a set of descriptive templates including e.g. a description of the actors, their planning and execution processes, the decoupling points used, together with information, material and financial flows. The proposed framework was applied to case studies in six countries (Canada, Chile, France, Poland, Sweden and USA) where fieldwork allowed us to collect information from 94 local actors and experts. The case studies allowed a list of options (i.e. catalogues) to be generated for different descriptive elements within the framework. We generated catalogues of 16 types of actors involved in a WSC, seven locations of decoupling points, four types of value commitment processes, eight standing timber and harvest timber pricing mechanisms and several payment methods for standing timber, harvested timber, harvesting and primary and secondary transportation. We also developed 17 generic processes for any planning and execution activities within a WSC, as well as 13 generic planning decisions at the operational level. Three basic designs of planning systems were identified: 1) integrated sourcing and harvesting planning, 2) integrated harvesting and transportation planning, and 3) decoupled sourcing, harvesting and transportation planning. We also identified six logistics techniques to adjust supply to demand. The agility capabilities of the WSC were assessed in four dimensions: customer sensitivity, process integration, information drivers and network integration. The developed methodology used a 0-4 scale to rate how well different enablers and practices, identified along the main processes within a WSC, contributed to each of these four dimensions. A WSC should strive towards proper agility capabilities in response to uncertainty in their environment. The agility capabilities evaluated in the case studies and those theoretically
Document Type: Rapport de recherche
Issue Date: 1 June 2012
Open Access Date: 20 January 2022
This document was published in: Centre interuniversitaire de recherche sur les réseaux d'entreprise la logistique et le transport
Collection:Rapports de recherche

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