Benchmarking Procurement Cost Saving Strategies for Wood Supply Chains

Intense international competition pushes the actors of wood supply chains to implement efficient chain management incorporating coordinated cost-saving strategies remain competitive. In order observe effects individual and decision making, mixed-integer programming models for forestry, round-wood transport, wood-based industry were developed integrated. The deal with operational planning issues regarding production, harvest, transport are solved sequentially cost optimization each actor as well simultaneously by a combined model representing joint in an integrated chain. This allows first time, benchmarking relative potential procurement transports, chains, satellite stockyards, higher truck payloads within single case study setting. Based on data from southern Austria, results show advantages up 24%. Higher reinforce this enable 40% savings compared predominant situation Central Europe. Wood integration European circumstances seems be feasible only limited consortium few companies, example when restricted wood-buying syndicate supplying several plants or large forest enterprises, especially both groups commonly steering their own. Consequently, further research challenging task implementing using opportunities digitalization realize existing deepening cooperation intensifying information exchange is needed.