World first “tree to customer” ™ supply chain delivers savings of ten percent
“Project Canopy is already reducing harvesting and distribution costs. Other benefits, for example from improvements in land use efficiency, are expected to result in total annual cost savings of more than ten percent.”
Carter Holt Harvey Forests chief executive, Jeremy Fleming
“The forestry industry is highly spatial. GIS systems are used extensively to manage large land and forest holdings. The unique intellectual property developed with Oxygen is based on achieving tight integration between spatial data held in GIS databases, and SAP applications used in the wider business.”
Carter Holt Harvey Forests business planning manager, Roger Kay
Challenge
- Integrate geographical information system data with other cost data, so true costs can be tracked from planting the tree right through to delivery on customer order
- Match supply and demand, so orders can be matched to trees suitable for harvesting
- Optimise weekly production schedule based on constraints such as distance, customer price and contract agreements
Solution
- SAP applications are the major ‘solution building blocks’, integrated with ESRI’s ARC GIS products
- Webmethods is used as the integration platform between the core internal systems and the systems of external suppliers
- Key SAP applications include APO, Project Systems, Sales and Distribution, Finance, Profitability Analysis, Materials Management and Service Management
- Business Workbench is used to bind together the complete solution, integrating the data from GIS and SAP systems, as well as data from an Oracle-based land yield database which holds all information on CHH Forests land holdings
Return on Investment
- Total annual cost savings in excess of ten percent
- Integration of SAP applications with spatial data allows operational plans for Forestry, Engineering, Harvesting and Distribution to be viewed as a single plan.
- Demand matching minimises external procurement
- Reduced harvest and distribution costs
- Improvements in land use efficiency
- Reliable, consistent fibre supply improves customer satisfaction
Downloads
Download the full Case Study here: Canopy at Carter Holt Harvey
Customer Profile
Carter Holt Harvey
Carter Holt Harvey is one of the largest diversified forestry and wood products companies in the region, comprising 65 subsidiary operating companies, employing more than 11 000 staff at 100 locations.
Business Profile: Carter Holt Harvey is one of the largest diversified forestry and wood products companies in the region, comprising 65 subsidiary operating companies and employing more than 11 000 staff at 100 locations. In addition to its extensive forestry interests, Carter Holt Harvey is a leading supplier of wood and building products.
Pulp & Paper: A division of Carter Holt Harvey, Pulp & Paper is Australia’s only producer of kraft market pulp, and a leading producer of kraft liner board and fibre cement pulp. Pulp & Paper has assets of over one billion dollars, employs over 1 000 people and has annual revenues of $735 million.
