Timber harvesting within a supply and value chain optimization context Motsa, Cornelius
In the forest sector, the supply chain starts with growing stock and proceeds to single or multiple series of transformation. Value chain optimization is an approach that maximizes value across the entire supply chain (Karlsson, Ronnqvist and Weintraub, 2007). The chain starts with raw material (standing timber), where physical activities have been implemented to get the raw material to different markets. This paper aims to discussing forest supply chain from an operative planning perspective within forest operations: timber harvesting, primary transport, and secondary transport to various markets. Short-term planning (harvesting and distribution) needs to become integrated with sawmilling planning and production. In order to optimize value across the entire supply chain, it is crucial to realize that timber harvesting operations have a major influence on the value being optimized. Arguably, for a holistic supply and value chain optimization, harvesting operations should be aimed at value maximization in consideration of the entire supply chain. The real challenges in forest harvesting supply and value chain optimization are bucking, production and logistics planning.
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