Abstract
The aim of this study was to map how the timber transport vehicle routing problem was solved in practice and which consequences different ways of solving the problem had for service and efficiency. A process perspective was employed for the mapping and the ways of solving the routing problem were expressed in terms of a series of planning and control activities. Fifteen haulage contractors from the Sodra Skogagarna forest owners association were selected for the mapping. The mapping resulted in a basic process model and 2 main variants. Key performance indicators for both service and economic efficiency were collected for a one-year period. The contractors’ service levels to suppliers were measured by the proportion of transport orders completed within a specified period. The contractors’ economic efficiency was measured by their net operating margin. The results show that contractor net operating margins decreased (from 15% to 1%) with increasing levels of supplier service (from 89.5 to 97% of orders completed within 5 weeks). Within this gradient, those using the complete process model had an average net operating margin of 4.1%. Those using a simplified model (with fewer service restrictions) had an average margin of 9.2%.
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