Improving efficiency in logistics operations of the wood fiber supply chain

• Main Author: Fallas Valverde, Paula Daniela
• Other Authors: Forest Resources and Environmental Conservation
• Format: Others
• Published: Virginia Tech 2019
• Subjects: Supply Chain; Value Stream Map; Lean Logistics; Analytical Hierarchy Process; Technique for Order of Preference by Similarity to Ideal Solution
• Online Access: http://hdl.handle.net/10919/88797

There is a gap in the research regarding applications of Lean tools in the wood fiber supply chain. A Value Stream Map (VSM) tool that focused on identifying Lean waste in logistic operations was developed and applied to three case study firms: a paper mill, a sawmill, and a logger. Using the VSM tool an absence of structured methods to select and assess suppliers was found, which promotes a fluctuating environment for suppliers. Therefore, a tool that implements a hierarchy system to categorize suppliers was developed, verified and validated. Through the use of the VSM implementation the author found a lack of information sharing between supply chain stakeholders, which causes a reactive environment for the industry. Improvements in wood flow planning, tract allocation, truck scheduling, and communication were projected as a future state of the system. The annual potential savings by implementing the projected improvements in the total cost were as follows for the paper mill, the sawmill, and the logger respectively: $306,232, $312,085, $756,504. As a result of the findings obtained through the VSMs, a supplier selection model was designed. The tool was implemented into software for the wood industry. The tool was then verified and validated. The verification process consisted of comparing the output through previously known results and was performed through seven interviews with different stakeholders. The appropriate application of the supplier selection tool improves the way in which companies in the wood industry select and assess their suppliers and guarantee that the best alternatives are selected. === Master of Science === In the wood fiber supply chain, integration between different parties within a supply chain has proven to be a difficult task. An innovative lean-logistics tool value-streamed map (VSM) was developed to evaluate the current and future state of a supply chain Once the tool was developed it was used to map the wood fiber supply chain, determine and measure key performance metrics, calculate the cost of logistics operations, and identify potential sources of waste. Three case studies representing common wood fiber supply chains were conducted to develop three current VSMs for selected value streams. The lack of communication between supply chain partners was determined to be the most significant source of waste in all three cases. Lack of communication could lead to idle equipment, unnecessary waiting times, excessive inventories, overproduction, and excessive transportation and movement. As a result of the findings obtained through the VSMs, which revealed the absence of structured methods to select and assess suppliers, a supplier selection model was designed. The tool was implemented into software for the wood industry. The tool was then verified and validated. The verification process consisted of comparing the output through previously known results and was performed through seven interviews with different stakeholders. The appropriate application of the supplier selection tool improves the way in which companies in the wood industry select and assess their suppliers and guarantee that the best alternatives are selected, thus increasing the chance of a successful relationship and increasing the value that the company gets from its supplier base.