IUFRO 2004

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IUFRO 2004

• A Discussion on the Role of Logistics in
  Small-Scale forestry
• Michael Cox QUT Australia

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Logistics is playing a central role

• Logistics has taken a prominent place in the
  global economy
• Evidence is seen in
• Transport
• Materials Handling
• Inventory Control
• Information Management
• Supply Chain Collaborations
• 3PL providers

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Logistics influence in current business practice

• Wal Mart have required all suppliers to use EPC
  by January 2005
• Industry flow on effects
• A Dominant firm influencing business practices
  but not just in retailing

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Industrial vs Small scale

• Industrial forestry is large scale business
• Plantation operations have a parallel with
  industrial operations
• Production schedules based on operations
  efficiency not just market demand
• Planting biased to output efficiency and growth
  not quality
• Small scale has the classic opportunity to meet
  the niche needs of a market

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Stages in a Timber Supply Chain and some areas
of Logistics support
Transport
Market
Planting
Traceability
Distribution
Inventory Control
Silvicultural Management
Demand Estimates
Value Added Manufacturing
Felling and Harvesting
Collaboration
Storage
Skidding and Storage
Postponement
Grading
Timber Mill
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Logistics perspectives 1

• The push-pull frontier
• A supply chain concept
• Where does demand for a product in the market
  create a production response?
• Typical industrial timber model is a push one
• Does a small-scale producer have more flexibility
  in meeting the needs of a market?

Planting
Market
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Logistics perspectives 2

• Postponement is delaying the final form factor of
  a product
• Advantages of this approach, storage, demand
• What can the small scale producer do in
  postponing the final form of a product?
• Timing, flexibility
• Value adding
• Personalising the nature of the final product

Markets

• Value Added
• Manufacturing
• Finger jointed lengths
• Butt joint panels

Storage Short Clears
Distribution
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Logistics perspectives 3

• Information Management Exchanges
• Modern businesses use exchange portals
• Community forest groups have information
  exchanges
• Can we use the same thing to exchange
  information on demand, inventories, silvicultural
  practices?
• Could we use passive RFID tagging to track and
  trace wood product?
• Trees grown on the weather side of a stand
• Trees which have been marked with superior growth
  characteristics in the forest management cycle

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Thanks for your attention