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Forests 2013, 4(4), 1171-1198; doi:10.3390/f4041171
Article

The Impact of Industrial Context on Procurement, Management and Development of Harvesting Services: A Comparison of Two Swedish Forest Owners Associations

Received: 12 September 2013; in revised form: 29 November 2013 / Accepted: 5 December 2013 / Published: 11 December 2013
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Abstract: Increasing demands to harvesting production and quality require improved management practices. This study’s purpose was to analyze the impact of industrial context on procurement, management, and development of harvesting services. Using interviews, functions were modeled at two forest owners associations (FOAs) with outsourced harvesting services. One FOA had its own sawmills, requiring frequent harvesting production adjustments to meet varying volume demand in the short-term. The long-term uncertainty was however low because of good visibility of future demand (>6 months). The other FOA did not own mills and produced wood according to fixed six-month delivery contracts. This meant few short-term production adjustments, but long-term uncertainty due to low visibility of future demand. Demand uncertainty resulted in corresponding needs for harvesting capacity flexibility. This could have been met by a corresponding proportion of short-term contracts for capacity. In this study, however, a large proportion (>90%) of long-term contracts was found, motivated by a perceived contractor shortage. It was also noted that although contractor investment cycles (4–6 years) matched the FOAs’ strategic horizons (3–5 years), contractors’ investment plans were not considered in the FOAs’ strategic planning. The study concludes with a characterization of different FOA contexts and their corresponding needs for capacity flexibility.
Keywords: logging; contractor; wood procurement; operations management; function modeling logging; contractor; wood procurement; operations management; function modeling
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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MDPI and ACS Style

Erlandsson, E. The Impact of Industrial Context on Procurement, Management and Development of Harvesting Services: A Comparison of Two Swedish Forest Owners Associations. Forests 2013, 4, 1171-1198.

AMA Style

Erlandsson E. The Impact of Industrial Context on Procurement, Management and Development of Harvesting Services: A Comparison of Two Swedish Forest Owners Associations. Forests. 2013; 4(4):1171-1198.

Chicago/Turabian Style

Erlandsson, Emanuel. 2013. "The Impact of Industrial Context on Procurement, Management and Development of Harvesting Services: A Comparison of Two Swedish Forest Owners Associations." Forests 4, no. 4: 1171-1198.


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