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[Nelson] Longtime Remsoft Client Continuously Discovering Value

BACKGROUND

Nelson Forests Limited (Nelson) is managed by Global Forest Partners LP, one of the world’s oldest and largest forestry investment managers and advisors. 

CHALLENGE

With 62,000 ha of well managed Radiata pine and Douglas fir plantations in the Tasman and Marlborough regions of NZ, Nelson generates an annual harvest of 1.1 M m3 with over 80 product grades. In addition to supplying their own sawmill, Nelson’s wood flows to 11 domestic mills and they have a significant export market to Asia through two ports. These all add up to a complex operation.

Without a model, Nelson was filling requests for customers wanting higher volumes of high-quality products assuming it would provide the highest value from the asset. Fulfilling these orders typically required a redistribution of products of variable value across the supply chain with no easy way of knowing what the overall effect these changes would have on the total value obtained from the asset. Without this information, the door was opened to make inefficient planning decisions.

Nelson was also in search of improved crew assignment, weekly harvest scheduling and delivery activities, to ensure they were getting the best margin from their operations. Spreadsheets alone were not able to provide them with the confidence that they were optimally allocating crews and deliveries or the agility to adapt to the inevitable changes once they occur. This manual process was laborious, unreliable and ultimately did not allow them to capture the full value of the resource.

SOLUTION

Having been a client for 10 years and counting, Nelson turned to Remsoft to help increase efficiency in their short-term plans and schedules. Using Woodstock Scheduler, Nelson is able to optimize their business problem and discover additional value.

Nelson can now adjust the values in their model and understand how changes in customer demand affect their overall plan, including how a changed order affects the total value obtained from the asset.  This has provided them new insight into what volumes they can supply and ensures they are making optimal allocation decisions.

With their Remsoft solution, Nelson can also consider cost, revenue and product volume KPIs to drive crew work orders and instructions for when/how to process products and where they should be delivered. This has resulted in more transparency (within the business and with their contractors/customers) , a reduction in operating costs, a better understanding of their resource and how it fits with customer demands and a more reliable supply to their customers.
Operational Planning Case Study - Nelson.pdf

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