The role of harvester measurement in the wood supply chain

Abstract

ABSTRACT Forest industries manage their wood supply chains for sustainability, efficiency, and value creation. Roundwood measuring is a crucial part of wood procurement to achieve the best total value and sharing of benefits between business partners in the supply chain. Industrial measurement is the dominant measuring technique used in Sweden, but the use of harvester measurement has gained increasing interest over the last decade. In this study, we analyzed how harvester measurement affects the wood procurement process regarding operations, supplier relationships, and total costs. The data was gathered through interviews with the analysis being supported by theoretical frameworks of lean thinking, supplier relationship management, and total cost of ownership. Harvester measurement has the potential to increase incentives for the purchaser to preserve the value created and improve control of the supply chain, thus leading to more efficient resource use. It also improves supplier relationships due to a simpler price list, which ultimately increases transparency. Lastly, forest industries may increase their profitability levels and competitiveness due to increased supply chain surplus and reduced total costs. Further research on quantitative measures is required to assess the significance of these effects, as well as the entire sustainability impact on the wood supply chain.