Questions? Call us at 503-645-2390

Forest

The harvest planning process can be extremely complex for one of our clients.  The company must honor environmental laws and policies.  There are other considerations such as road access and available harvest equipment.  Some tracts are located in the river bottoms and are difficult to harvest in wet weather.  Soil types and rainfall can vary from site to site within the forest.

A Case Study

In one region the client company operates sawmills and a veneer plant.  The mills are geographically dispersed within a 50 mile radius.  Timberlands are sometimes located more than 100 miles from a mill site.  Each mill has different manufacturing capabilities that yield different values from the logs.  One sawmill has curve sawing capabilities that allow it to better process certain log types than other sawmills in the area.  Another facility is capable of merchandising logs to be used in the local large sawmill, small sawmill or veneer mill.

The Problem

The company faces a complex decision environment in the sourcing of logs for manufacturing.  Planners must consider profit-sensitive questions related to manufacturing efficiencies and costs, outsourcing options, log inventory constraints and transportation costs.  Literally thousands of variables are in play within this business environment.

This client understands that a comprehensive modeling tool will allow a business to make much better decisions than simply cranking options through a spreadsheet.  The Optware System is designed to maximize profit subject to the business constraints, process flows, revenues and costs.  The central technology that drives the system is a powerful linear-programming-based optimizer.

The Solution

Once the project was initiated, Optware Solutions was able to analyze the business and deliver a working system tailored to the client’s needs within six months.  The System was designed to integrate with existing information systems for much of the required modeling data.

The client uses the system for both strategic and tactical uses.  Strategic runs are often made early in the year to assess “big-picture” issues.  Tactical runs are made on a weekly routine.  Many people are involved in the process.  In some cases, intranet interfaces have been employed to facilitate data passage to the Optware System.  Individual foresters are responsible for communicating harvest availability by timber tract.  It is their insights that play a key role in the quality of the solution implementation.

Profit Optimization technology allows companies to treat dispersed operations as a single entity and to capture synergies across the business unit.  The tool provides our clients with much greater insight about their businesses and the impact of product mix and log sourcing on operations.  The results lead to an improved planning process and higher profits!

Contact Optware today to schedule a consultation
503-645-2390 | info@optware.com
  • Steve Killgore, President, McKenzie Forest Products

    “We picked up well over 35% savings in our manufacturing costs in a one year period”

  • Michael McCollum, President Procurement, Georgia-Pacific Corporation

    “We saved 1.5-2% of total fiber costs in transportation savings alone using Optware”

  • Mark Shuholm, Manager, Containerboard Division, Willamette Industries

    “Optimization allowed us to substantially improve our paper machine utilization across the Division”

  • Richard Dutchak, Engineering Manager, Loewen

    “We documented wood cost savings of just under $1,000,000 in the first year of using the software”

About Optware

Optware Solutions LLC was founded in 1991 (under the name Optware Consulting) as a company dedicated to the application of linear programming technology to the forest products industry. The first system installation was in a plywood plant in France. Optware Solutions has been a pioneer in the integration of relational database technology with linear programming.

Today, Optware Solutions offers a variety of state-of-the-art linear programming-related products and services. Optware Solutions believes that service is our business and we pledge to: place customer needs above our own, to protect confidential information, and to act in a professional manner.

Contact Us

12725 SW Millikan Way Suite 300
Beaverton, OR 97005
(503) 645-2390
info@optware.com


16 Fell Avenue South
Burnaby B.C. V5B 3Y2, Canada
(604) 210-1290
info@optware.com