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Forest Products Society

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Publication: Journal of Forest Products Business Research
Authors: 0
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Publish Year: 2004
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Title: Supply Chain Management Mapping for the Forest Products Industry: Three cases from western Canada
Description:
In this paper, we review the development of supply chain management (SCM) and identify a number of considerations for applying these techniques to the forest products industry. A review of the literature found that SCM initiatives were primarily customer focused, where a significant amount of market pull exists. However, the forest products industry is characterized by sales of commodity
products with push marketing. Successful implementation of SCM in these types of supply chains were found to focus on efficiencies through: 1) increasing throughput and 2) reducing inventories. Potential for efficiency improvements are larger when a holistic perspective is applied, integrating processes across companies in the supply chain. Two supply chain mapping methods were identified from the literature as key techniques for use in the forest products industry, and these were applied to three case companies in the western Canadian province of British Columbia. In general, it was found to be especially challenging to apply these techniques (and SCM in general) to commodity-based supply chains because of uncertainty in raw material supply, the relatively long lead times in production, and production processes that generate a relatively high percentage of consequence products. However, the mapping processes yielded some promising results with respect to creating an overview of supply chain structures, time consumption, and inventories. One major benefit derived from applying these methods would be improved communications between actors, customers, and suppliers along the supply chain. The authors suggest that SCM mapping tools be modified to improve their performance in analyzing supply chains for the forest products industry.

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