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Digital Technologies for Forest Supply Chain Optimization: Existing Solutions and Future Trends

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Abstract

The role of digital technologies for fostering sustainability and efficiency in forest-based supply chains is well acknowledged and motivated several studies in the scope of precision forestry. Sensor technologies can collect relevant data in forest-based supply chains, comprising all activities from within forests and the production of the woody raw material to its transformation into marketable forest-based products. Advanced planning systems can help to support decisions of the various entities in the supply chain, e.g., forest owners, harvest companies, haulage companies, and forest product processing industry. Such tools can help to deal with the complex interdependencies between different entities, often with opposing objectives and actions—which may increase efficiency of forest-based supply chains. This paper analyzes contemporary literature dealing with digital technologies in forest-based supply chains and summarizes the state-of-the-art digital technologies for real-time data collection on forests, product flows, and forest operations, as well as planning systems and other decision support systems in use by supply chain actors. Higher sustainability and efficiency of forest-based supply chains require a seamless information flow to foster integrated planning of the activities over the supply chain—thereby facilitating seamless data exchange between the supply chain entities and foster new forms of collaboration. Therefore, this paper deals with data exchange and multi-entity collaboration aspects in combination with interoperability challenges related with the integration among multiple process data collection tools and advanced planning systems. Finally, this interdisciplinary review leads to the discussion of relevant guidelines that can guide future research and integration projects in this domain.

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Acknowledgements

This research has received funding from the European Union Seventh Framework Programme (FP7/2007-2013) under grant agreement no. 604286 and called “FOCUS” (Advances in Forestry Control and Automation Systems in Europe). The authors wish to acknowledge the contributions of the members of the FOCUS consortium. Further funding was obtained from the Project “NORTE-01-0145-FEDER-000020 (TEC4Growth—Pervasive Intelligence, Enhancers and Proofs of Concept with Industrial Impact)”, financed by the North Portugal Regional Operational Programme (NORTE 2020), under the PORTUGAL 2020 Partnership Agreement, and through the European Regional Development Fund (ERDF).

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Correspondence to Johannes Scholz.

Appendix

Appendix

List of papers for the literature review and their classification

Author

Year

Title

Type

Digital technology

Processes of FbSCs

Value chain type

Akhtari and Sowlati

2015

Hybrid simulation and optimization approaches to tackle supply chain complexities—A review with a focus on forest products supply chains

Journal

Interoperability and integration

Procurement

Lumber

Akhtari et al.

2014

Optimal flow of regional forest biomass to a district heating system

Journal

Planning systems

Procurement

Biomass

Alam et al.

2012

Modeling Woody Biomass Procurement for Bioenergy Production at the Atikokan Generating Station in Northwestern Ontario

Journal

Planning systems

Procurement

Biomass

Alayet et al.

2016

Centralized supply chain planning model for multiple forest companies

Journal

Planning systems

Procurement

Lumber

Andalaft et al.

2003

A problem of forest harvesting and road building solved through model strengthening and Lagrangean relaxation

Journal

Planning systems

Procurement

Lumber

Andersson et al.

2008

RuttOpt—A decision support system for routing of logging trucks

Journal

Planning systems

Procurement

Lumber

Andersson et al.

2016

A model approach to include wood properties in log sorting and transportation planning

Journal

Planning systems

Procurement

Lumber

Arraiolos et al.

2011

ICT deployment strategy in Aquitaine WSC: The ExploTIC breakthrough

Conference proceedings

Interoperability and integration

Procurement

Lumber

Audy and D’Amours

2008

Impact of benefit sharing among companies in the implantation of a collaborative transportation system—An application in the furniture industry

Book

Interoperability and integration

Distribution

other

Audy et al.

2011

Cost allocation in the establishment of a collaborative transportation agreement—an application in the furniture industry

Journal

Interoperability and integration

Distribution

other

Audy et al.

2007

Virtual transportation manager: a web-based system for transportation optimization in a network of business units

Conference proceedings

Interoperability and integration

Procurement

Lumber

Audy et al.

2012a

Planning methods and decision support systems in vehicle routing problems for timber transportation: a review

Report

Planning systems

Procurement

Lumber

Azouzi and D’Amours

2011

Information and Knowledge sharing in the collaborative Design of Planning Systems within the Forest Products Industry: Survey, Framework and Roadmap

Journal

Interoperability and integration

Procurement

Lumber

Bajgiran et al.

2017

Forest harvesting planning under uncertainty: a cardinality-constrained approach

Journal

Planning systems

Procurement

Lumber

Beaudoin et al.

2008

Hierarchical forest management with anticipation: an application to tactical–operational planning integration

Journal

Planning systems

Procurement

Lumber

Beaudoin et al.

2010

Negotiation-based distributed wood procurement planning within a multi-firm environment

Journal

Planning systems

Procurement

Lumber

Beaudoin et al.

2007

Tactical supply chain planning in the forest products industry through optimization and scenario-based analysis

Journal

Planning systems

Procurement

Lumber

Bredström et al.

2010

Annual planning of harvesting resources in the forest industry

Journal

Planning systems

Procurement

Lumber

Broman et al.

2009

Supply Chain Planning of Harvest and Transportation Operations after the Storm Gudrun

Journal

Planning systems

Procurement

Lumber

Broz et al.

2017

Strategic planning in a forest supply chain: a multigoal and multiproduct approach

Journal

Planning systems

Procurement

Lumber

Cambero et al.

2015

Strategic optimization of forest residues to bioenergy and biofuel supply chain

Journal

Planning systems

Procurement

Biomass

Carlsson and Rönnqvist

2007

Backhauling in forest transportation: models, methods, and practical usage.

Journal

Planning systems

Procurement

Lumber

Carlsson and Rönnqvist

2005

Supply chain management in forestry-case studies at Södra Cell AB

Journal

Planning systems

Procurement

all

Carlsson et al.

1998

Operative planning and dispatching of forestry transportation

Journal

Planning systems

Procurement

Lumber

Castonguay and Gingras

2014

FPInnovations’ FPSuiteTM Monitoring Tools: an integrated platform to monitor the entire forest supply chain

Book

Process data collection tools

Procurement

Lumber

Chang and Gaston

2014

The competitiveness of Canadian softwood lumber: a disaggregated trade-flow analysis

Journal

Planning systems

Sales

Lumber

Chauhan et al.

2009

Multi-commodity supply network planning in the forest supply chain

Journal

Planning systems

Procurement

Lumber

Chauhan et al.

2011

Supply network planning in the forest supply chain with bucking decisions anticipation

Journal

Planning systems

Procurement

Lumber

Czabke

2007

Lean thinking in the secondary wood products industry: challenges and benefits

Other

Interoperability and integration

Production

other

D’Amours et al.

2008

Using operational research for supply chain planning in the forest products industry

Journal

Planning systems

Procurement

all

Dansereau et al.

2010

Sustainable Supply Chain Planning for the Forest Biorefinery

Journal

Planning systems

Procurement

Biomass

De Meyer et al.

2015

A generic mathematical model to optimize strategic and tactical decisions in biomass-based supply chains (OPTIMASS)

Journal

Planning systems

Procurement

Biomass

De Meyer et al.

2016

Considering biomass growth and regeneration in the optimization of biomass supply chains

Journal

Planning systems

Procurement

Biomass

Dems et al.

2017

Annual timber procurement planning with bucking decisions

Journal

Planning systems

Procurement

Lumber

Dems et al.

2015

Effects of different cut-to-length harvesting structures on the economic value of a wood procurement planning problem

Journal

Planning systems

Procurement

Lumber

Devlin et al.

2008

Timber haulage routing in Ireland: an analysis using GIS and GPS

Journal

Process data collection tools

Procurement

Lumber

Dong and Wang

2010

Optimization of Timber Procurement and Logistics

Conference proceedings

Planning systems

Procurement

Lumber

Eker

2011

Assessment of procurement systems for unutilized logging residues for Brutian pine forest of Turkey

Journal

Planning systems

Procurement

Biomass

El Hachemi et al.

2009

A heuristic to solve the weekly log-truck scheduling problem.

Conference proceedings

Planning systems

Procurement

Lumber

El Hachemi et al.

2011a

A heuristic to solve the synchronized log-truck scheduling problem

Journal

Planning systems

Procurement

Lumber

El Hachemi et al.

2011b

A hybrid constraint programming approach to the log-truck scheduling problem

Journal

Planning systems

Procurement

Lumber

Epstein et al.

1999

A system for the design of short-term harvesting strategy

Journal

Planning systems

Procurement

Lumber

Epstein et al.

2006

A combinatorial heuristic approach for solving real-size machinery location and road design problems in forestry planning

Journal

Planning systems

Procurement

Lumber

Ezzati et al.

2015

An optimization model to solve skidding problem in steep slope terrain

Journal

Planning systems

Procurement

Lumber

Flisberg et al.

2009

A hybrid method based on linear programming and tabu search for routing of logging trucks

Journal

Planning systems

Procurement

Lumber

Flisberg et al.

2012

FuelOpt: a decision support system for forest fuel logistics

Journal

Planning systems

Procurement

Biomass

Föhr et al.

2014

Cost-Benefit Analysis for Forest Biomass Supply Chains by Using RFID-Technology and Interchangeable Containers

Conference proceedings

Process data collection tools

Procurement

Biomass

Forsberg et al.

2005

FlowOpt—A decision support tool for strategic and tactical transportation planning in forestry

Journal

Planning systems

Procurement

Lumber

Frayet et al.

2007

Agent-based supply chain planning in the forest products industry

Journal

Planning systems

Procurement

Lumber

Frisk et al.

2010

Cost allocation in collaborative forest transportation.

Journal

Interoperability and integration

Procurement

Lumber

Fritz et al.

2010

FlexWood: Description of standards.

Report

Interoperability and integration

entire supply chain

Lumber

Gautam et al.

2014

Value-adding through silvicultural flexibility: an operational level simulation study

Journal

Interoperability and integration

Procurement

Lumber

Gautam et al.

2015

Modeling hierarchical planning process using a simulation-optimization system to anticipate the long-term impact of operational level silvicultural flexibility

Journal

Planning systems

Procurement

Lumber

Gerasimov and Sokolov

2014

Decision Making Toolset for Woody Biomass Supply Chain in Karelia

Journal

Planning systems

Procurement

Biomass

Ghaffariyan et al.

2013

Analyzing the effect of five operational factors on forest residue supply chain costs: A case study in Western Australia

Journal

Planning systems

Procurement

Biomass

Gronalt and Hirsch

2007

Log truck scheduling with a tabu search strategy

Book

Planning systems

Procurement

Lumber

Gruber and Scholz

2005

GIS-based Planning of Forest Road Networks

Conference proceedings

Planning systems

Procurement

Lumber

Guignard et al.

1998

Model tightening for integrated timber harvest and transportation planning

Journal

Planning systems

Procurement

Lumber

Gunnarsson et al.

2004

Supply chain modeling of forest fuel

Journal

Planning systems

Procurement

Biomass

Häkli et al.

2013

Challenges and possibilities of RFID in the forest industry

Book

Process data collection tools

entire supply chain

other

Henningsson et al.

2007

Optimization models for forest road upgrade planning

Journal

Planning systems

Procurement

other

Hirsch and Gronalt

2008

Optimization techniques to reduce empty truck loads in round timber transport

Journal

Planning systems

Procurement

Lumber

Holweg et al.

2005

Supply Chain Collaboration: Making Sense of the Strategy Continuum

Journal

Interoperability and integration

entire supply chain

other

Holzleitner et al.

2011

Analyzing time and fuel consumption in road transport of round wood with an onboard fleet manager

Journal

Process data collection tools

Procurement

Lumber

Jerbi et al.

2015

Optimization/simulation-based Framework for the Evaluation of Supply Chain Management Policies in the Forest Product Industry

Conference proceedings

Interoperability and integration

Procurement

Lumber

Jones and Ohlmann

2008

Long-range timber supply planning for a vertically integrated paper mill

Journal

Planning systems

Procurement

Pulp & Paper

Kangas et al.

2008

Decision support for forest management

Book

Planning systems

Procurement

Lumber

Karlsson et al.

2006

RoadOpt: A decision support system for road upgrading in forestry.

Journal

Planning systems

Procurement

Lumber

Koch and Unrau

2012

Final report FlexWood project.

Report

Interoperability and integration

entire supply chain

Lumber

Kong and Rönnqvist

2014

Coordination between strategic forest management and tactical logistic and production planning in the forestry supply chain

Journal

Planning systems

Procurement

Lumber

Kong et al.

2015

Using mixed integer programming models to synchronously determine production levels and market prices in an integrated market for round wood and forest biomass

Journal

Planning systems

Procurement

Biomass

Korten and Kaul

2008

Application of RFID (radio frequency identification) in the timber supply chain

Journal

Process data collection tools

Procurement

Lumber

Kühmaier and Stampfer

2012

Development of a Multi-Criteria Decision Support Tool for Energy Wood Supply Management

Journal

Planning systems

Procurement

Biomass

Kurniawan et al.

2011

Integration of Production and Supply Chain Strategic Planning for Renewable Resources under Sustainability Considerations: Teakwood Case Study

Journal

Interoperability and integration

Procurement

Lumber

Lappi and Lempinen

2008

A linear programming algorithm and software for forest-level planning problems including factories

Journal

Planning systems

Procurement

Lumber

Laroze and Greber

1997

Using tabu search to generate stand level, rule-based bucking patterns

Journal

Planning systems

Procurement

Lumber

Laukkanen et al.

2004

Applying voting theory in participatory decision support for sustainable timber harvesting

Journal

Planning systems

Procurement

Lumber

Leduc et al.

2012

CHP or biofuel production in Europe?

Report

Planning systems

Production

Biomass

Lehoux et al.

2007

Collaboration and decision models for a two-echelon supply chain: A case study in the pulp and paper industry

Report

Planning systems

Distribution

Pulp & Paper

Lehoux et al.

2011

Collaboration for a two-echelon supply chain in the pulp and paper industry: the use of incentives to increase profit

Journal

Interoperability and integration

Distribution

Pulp & Paper

Little and Manzano

2012

FlexWood: Design of the overall architecture

Report

Interoperability and integration

Procurement

Lumber

Machani et al.

2014

A mathematically-based framework for evaluating the technical and economic potential of integrating bioenergy production within pulp and paper mills

Journal

Interoperability and integration

Production

Pulp & Paper

Mansoornejad et al.

2010

Integrating product portfolio design and supply chain design for the forest biorefinery

Journal

Interoperability and integration

entire supply chain

Biomass

Marques et al.

2015

A comprehensive framework for developing interfirm collaboration—A study in the forest-based supply chain

Journal

Interoperability and integration

Procurement

Lumber

Marques et al.

2014

Combining optimization and simulation tools for short-term planning of forest operations

Journal

Planning systems

Procurement

Lumber

Marshall et al.

2006

Three mathematical models for bucking-to-order

Journal

Planning systems

Procurement

Lumber

Martín-Fernández and García-Abril

2005

Optimization of spatial allocation of forestry activities within a forest stand

Journal

Planning systems

Procurement

Lumber

Mesfun and Toffolo

2015

Integrating the processes of a Kraft pulp and paper mill and its supply chain

Journal

Interoperability and integration

entire supply chain

Pulp & Paper

Mirkouei and Haapala

2015

A network Model to Optimize Upstream and Midstream Biomass –to-Bioenergy Supply Chain Costs

Conference proceedings

Planning systems

entire supply chain

Biomass

Mitchell

2005

Methods of moisture content measurement in the lumber and furniture industries

Report

Process data collection tools

Procurement

Lumber

Montgomery et al.

2016

Modeling work plan logistics for centralized biomass recovery operations in mountainous terrain

Journal

Planning systems

Procurement

Biomass

Murphy et al.

2012

Current and Potential Tagging and Tracking Systems for Logs Harvested from Pacific Northwest Forests

Journal

Process data collection tools

Procurement

Lumber

Murray and Church

1995

Heuristic solution approaches to operational forest planning problems

Journal

Planning systems

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Lumber

Muys et al.

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Simulation tools for decision support to adaptive forest management in Europe

Journal

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Lumber

Myers and Richards

2003

Supporting wood supply chain decisions with simulation for a mill in northwestern BC

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Lumber

Natarajan et al.

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Optimal Locations for Methanol and CHP Production in Eastern Finland

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Production

Biomass

Ouhimmou et al.

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Optimization Helps Shermag Gain Competitive Edge

Journal

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Procurement

Lumber

Palander

2011b

Modeling renewable supply chain for electricity generation with forest, fossil, and wood-waste fuels

Journal

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Procurement

Biomass

Palander

2011a

Technical and economic analysis of electricity generation from forest, fossil, and wood-waste fuels in a Finnish heating plant

Journal

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Biomass

Palander and Voutilainen

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Modeling fuel terminals for supplying a combined heat and power (CHP) plant with forest biomass in Finland

Journal

Planning systems

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Biomass

Palander and Väätäinen

2005

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Scholz, J., De Meyer, A., Marques, A.S. et al. Digital Technologies for Forest Supply Chain Optimization: Existing Solutions and Future Trends. Environmental Management 62, 1108–1133 (2018). https://doi.org/10.1007/s00267-018-1095-5

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