Abstract

The wood-processing industry currently does not sufficiently use modern technologies, unlike the automotive sector. The primary motive for writing this article was in cooperation with a Slovak wood processing company, which wanted to improve its logistics processes and increase competitiveness in the wood processing sector through the implementation of new technologies. The aim of this article was to identify the positives and limitations of the implementation of Internet of Things (IoT) technology into the wood processing industry, based on a secondary analysis of case studies and the best practice of American wood processing companies such as West Fraser Timber in Canada, and Weyerhaeuser in the USA. The selection of case studies was conditional on criteria of time relevance, size of the sawmills, and production volume in m3. These conditional criteria reflected the conditions for the introduction of similar concepts for wood-processing enterprises in Slovakia. The implementation of the IoT can reduce operating costs by up to 20%, increase added value for customers, and collect real-time data that can serve as the basis for support of management and decision-making at the operational, tactical, and strategic levels. In addition to the secondary analysis, methods of comparison of global wood processing companies, synthesis of knowledge, and summarization of positives and limitations of IoT implementation or deduction were used to reach our conclusions. The results were used as the basis for the design of a general model for the implementation of IoT technology for Slovak wood processing enterprises. This model may represent best practice for the selected locality and industry. The implications and verification of the designed model in practice will form part of other research activities, already underway in the form of a primary survey.

Highlights

  • The concept of logistics comes from military preparations and tactics, which highlight the importance of optimal supply

  • Managers receive relevant information from regular audit evaluation of logistics processes, which they use in management and decision-making at all business levels

  • The absolute majority of North America is composed of forest, which is an essential source of round timber

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Summary

Introduction

The concept of logistics comes from military preparations and tactics, which highlight the importance of optimal supply. In the early 21st century, with the introduction of robotisation, ICT elements were implemented in material flow transport activities, along with the trend of the Internet of Things. Future trends, such as digitisation, localisation, “green” warehouses, artificial intelligence, custom warehouse management systems (WMS), radio frequency identification (RFID), and quick response codes (QR) may reduce operating costs and support the competitiveness of companies. By 2020, surveys have forecast a threefold increase in the use of the Internet of Things in all areas of life, leisure, and operational activities This includes the implementation of the IoT in the logistics processes of wood processing companies. Wood processing companies that are actively involved in developing new trends and implementing IoT technologies will strengthen their current market position in the future and provide their competitors with a guide to best practices for success

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