Strategic Design for an Integrated and Sustainable Forest Supply Chain - Essay Example

Integrating energy production within the forest value chain, Collaborative forest planning and value chain design (Collaborative planning tools), and Material Handling (forest to mill). FORAC was launched in 2002 at the university level and includes 12 professors and 10 researchers, 30 students, and 10 partners who are the main players in Quebec and Canada’s forests. There are two main research programs: NSERC Industrial Chair on Collaborative Integration and Synchronization of the Forest Products Supply Chains and NSERC Collaborative Research and Development (CRD) “Planning the softwood supply chain”. The mission of FORAC is “To be a Canadian and international reference in the development of knowledge and supporting decisions.

makers with competencies in value chain optimization and integration for the forest products industry. Objectives include; competitiveness by supporting decisions. makers with the design and planning of eco? efficient value chains, train highly qualified people in the field of value chain management applied to the forest industry research study, develop and validate new decisions? support technologies, new methods, and planning tools for better value chain coordination, collaborative planning for better value chain integration and synchronization, simulations of different management strategies to evaluate economic impacts, and transfer knowledge and technology to industry and partners.

Stated values include Excellence, Networking, Relevance, and Communication. The presenter gave a sample of research contributions in areas of forest, paper, sales, customers, sawing, drying, finishing, OSB, retailers, warehouses, wholesalers, and 2nd and 3rd transformations. Contribution to a sustainable forest value chain was stressed. Forestland and its value creation network were emphasized with a discussion on the Evolution and transformation of the value creation network. Value chain management in a Value creation network is an integrated vision of logistics that considers all the processes and flows involved in the making of a product, from its design to its delivery to the final customer.

The chain includes all service suppliers and customers. Key aspects of forest products logistics include Low-cost strategy, Very long cycle time, and Divergent product flow due to wood being a biological material. Eastern Canada is a high-cost producer and Eastern Canada’s lumber basket value is low. Activities that add no value (handling, inventory, transport, repeated inspections) represent 95% of the time from the moment a tree is harvested to the moment the final product is delivered to the customer.

Supply Divergent product flows (Government to Companies) include Forestry and industrial policies, Forest and assets planning, Planning Processes, Integrated planning, and Operational planning. Three challenges discussed with possible solutions are; Challenge 1: Integrating energy production within the forest value chain with the solution of “Integrated Bio-refinery and Forest Products Supply Chain Network Design Using Mathematical Programming Approach., its conclusions are: A MIP-based strategic planning model is developed for a market-driven integrated forest bio-refinery supply chain; Within the scope of this study, pelletization seems to be the most profitable investment option and integrated supply chain design creates significant value; Using a modeling approach, various scenario analysis can be carried out using real data to support critical strategic decisions in transforming towards the more profitable industry.

Challenge 2: Collaborative forest planning and value chain design with solutions in; Silvilab Decision Support System for Forest Management and Logilab – Optimizing the value chain. Challenge 3: material handling with a solution of; A dynamic FRP model for improved coordination of sawmill and log yard operations In the last problems related to wood yard management have been discussed with suggestions for further study. It was concluded that; Forest products industry can still be (is) a major economic force in Canada (The bioecononomy paradigm).

Collaborative tactical/operational planning remains a challenge: (Problems are large and “real,” “Optimized” solutions must often be negotiated, and Collaboration is not natural in a competitive setting). FORAC through its dynamic partnerships provides a FORAC, partnerships, favorable environment to tackle these challenges.