Norbord Inc. is a Toronto-based international producer of wood-based panels with annual sales of approximately US $1.3 billion. Norbord has 15 manufacturing operations in the United States, Europe and Canada.
Norbord engaged Optware Solutions to help optimize order fulfillment and inventory management for their North American OSB plants. Hundreds of discrete orders are processed through their central office every week. An order represents a truckload or railcar load of miscellaneous SKU’s.
In a multi-plant environment optimal order assignment is contingent on a number of factors including raw material availability, production capacity, manufacturing capabilities, product recipes, panel grade yields, customer requirements and the like. In addition to operating constraints there are manufacturing and transportation cost differentials between the plants.
The Optware System allows Norbord to view their multi-site business as a single entity. The optimization system interfaces easily with the order management system to provide a seamless method for allocating orders to manufacturing plants in the most effective manner.
The Optware Enterprise solution helps Norbord get the most out of their manufacturing resource and reduces their freight costs. In addition, Norbord has been able to improve the planning process and customer service through the use of this technology.
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”