Optware modeling software helps businesses address the procurement function. Most commonly, fiber sourcing involves the purchase of logs or other forms of fiber. The scope of an implementation for sourcing a papermill may include pulp wood, chip purchase options, sawlog purchase options, pulp purchase options, recycled fiber options, transportation costs, chipmill conversion processes, by-product yields, chip loading and transportation constraints, inventory management, energy production from wood waste, and pulping processes. Optware Systems are designed to maximize financial return 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 key to optimized procurement is buying the right fiber for your mill or group of mills at the right time. In many cases, procurement optimization is done as a part of a larger Enterprise Optimization that would include representation of the manufacturing process and trucking. Many people underestimate the leverage of this activity. Profit Optimization will help uncover hidden opportunities to improve your bottom-line.
Steve Killgore, Vice President Solid Wood, Roseburg 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”
Rosie Steenson, Manager, Containerboard Division, Weyerhaeuser Company
“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”