February 6, 2018

Democratising the forest industry ecosystem

Jaakko Kuusisaari

Head of Wood and Fibre Solutions, Tieto

Tieto Forest Hub puts small players on an equal footing with the giants

In Finland, a country living largely from its forests and its forest industry, the wood and fibre supply ecosystem has hundreds of thousands of players. Tieto’s Forest Hub® now gives them all a possibility to benefit from the power and the business opportunities of a digital network, enabling everyone to do business with everyone else.

To give you an idea of the magnitude we’re talking about, Finland has 600,000+ forest owners, hundreds of forest service companies, 1,000+ harvesting companies, hundreds of transport companies and 500+ forest industry companies.

Creating a huge marketplace

Forest Hub, as the name implies, is a new ecosystem service that provides digital transparency in wood logistics and mill reception processes. Besides that, it connects everyone across the entire ecosystem.

The old way of doing business required point-to-point connections. If you wanted to buy, sell, harvest, transport or communicate with anyone else, you needed to get in touch with them separately.

Forest Hub connects everyone through standardised papiNet messaging online. This reduces the amount of manual work and human error, does away with systems not talking to each other, and avoids a huge time sink. You can use the system simply through a browser, or connect your business system directly to Forest Hub. The entire process is digitalised for convenience, accuracy and efficiency.

The small player expands its reach

If you’re a sawmill, you will have a direct link to your existing and potential sawlog suppliers. Advance information about your deliveries, speeding up and simplifying your millgate reception operations, saves you money and time. Anyone who is connected to Forest Hub is also reachable to you, fast and easy.

If you’re a power plant using biomass as fuel, via Forest Hub you can get advance information about your fuel deliveries and can better plan your stock levels. You can also send up-to-date fuel moisture measurements back to your supplier, which makes it possible for the supplier to optimise your future deliveries.

Tieto Forest Hub sales partners can offer regional or vertical satellite hubs, making it even easier for locally operating players to join. The Hub expands your possibilities to trade with companies you normally wouldn’t, finding just the right raw material at just the right time and at the right price.

The big player stands to benefit, too

The more participants there are in the Forest Hub ecosystem, the more everyone will profit.

For the big players, digitalised business interaction saves a lot of manual work, introducing new efficiencies and cost savings in their transactions with existing trade partners and reducing the likelihood of human error. Not to mention the increased number of actors with whom they can do business – which, of course, is a mutual bonus.

Roadmap into the future

While Forest Hub at present focuses on the supply chain from forest to the mill yard, in future, it will also introduce solutions for outgoing goods. The earlier you join, the more you stand to gain.

If you’re interested in multiplying your business opportunities, we’ll be happy to discuss how to best get you on board. Get in touch!

Read more about Tieto Forest Hub.

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