Realise the business value potential achievable through modern digital wood inventory management.
The woodyard and remote terminals must balance the supply of raw material with the needs of pulp and paper production round the year, regardless of the season. Jussi Kortelainen, Senior Product Manager for forest industry logistics at Tieto, outlines how digitalisation helps realise the business value potential achievable through modern digital wood inventory management.
The woodyard and remote terminals are in a tactically important position in the pulp and paper supply chain, at the interface between wood supply and production. Their function as the buffer stocks responsible for supplying production with the right quality and quantity of raw material regardless of seasonal variation can be a crucial element in a pulp and paper company’s cost and quality optimisation effort.
Digital woodyard management with accurate positioning starts from remote terminals and continues via mill gate to woodyard or directly to production. With exact data on every bundle, you can both ensure optimal inventory turnaround and minimise quality losses in storage. Quality degradation quickly runs into large sums – the quality loss of pine fibre, for example, costs in the region of 5 euro per m3 over just one summer.
When the harvesting and unloading dates are known, it becomes easier to move just the right quality of wood into production following the FiFo principle. Raw materials can also be optimally arranged in every storage for their intended flow and use.
Knowing the contents of your storage in detail allows you to plan and optimise the debarking feed. Being able to plan the feed based on dimension and dryness of the wood minimises material loss in debarking, such as fresh wood spending too much time in debarking.
Optimal debarking also improves chip quality. You will achieve homogenous granularity and ensure the purity of the debarking outcome.
Production will be happy with the homogenous and even raw material mix. Better control leads to less need for overcompensation with raw material whose quality is too high for the purpose, adding an extra cost factor. Accurate data of chip stack content helps meet the exact needs of production.
Full traceability enables fine-tuning the production recipes based on analytical data. It also optimises the use of chemicals as raw material quality does not need to be compensated by using more chemicals – an ideal combination of lower cost and lower environmental impact.
With the knowledge of coming deliveries, the woodyard is always ready for every truck, train or vessel coming in. Vehicle turnaround time can be shortened, allowing the trucks more productive working time.
Also, because the quality of wood is known in detail, drivers can avoid mistakes in picking the right wood.
Management benefits from accurate reporting of the consumption of both roundwood and chips, while being able to compare production results with used raw material. Integration with reception system, debarking system, ERP and BI tools ensures full end-to-end transparency of the woodyard operation.
Tieto’s TIFF (Tieto Integrated Fibre Flow), Inventory solution, is designed for the digital optimisation of woodyard and remote terminal operations. To give you an idea of what you can achieve with transforming your woodyard into a digitally run revenue generator, our calculations show that the annual savings possible at 300,000 tonnes annual pulp production can be in the scale of 1 million euro.
We will be happy to help you determine how much you could add to your bottom line through digitalising and automating your woodyard and remote terminal operations. Should we talk?