Pooling freight capacities to enhance wood supply for a network of sawmills

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Abstract

The forest industry plays a key role in the economy for the province of Quebec, Canada, contributing $5.8 billion to its gross domestic product in 2023. All costs presented in this study are in Canadian dollars, except where noted. Forest operations are carried out by public and private companies involved in timber harvesting, wood processing, and silviculture, including tree nurseries. Forest cooperatives, organizations owned by their employees, are an important contributor to the Quebec wood supply system. They are involved in a wide range of operations and are active in all major forest regions. Like most companies, their operations are sometimes constrained by insufficient transportation capacity due to a shortage of drivers. One potential solution would consist of aggregating transportation capacities across cooperatives. However, few studies have documented the benefits of mutualizing trucking resources, and the lack of demonstrated benefits may hinder the implementation of collaboration in transport operations. This study aims to investigate collaborative timber transportation planning. A case study involving three forestry cooperatives examines the impact of pooling trucks for wood transportation from the forest to sawmills. A mathematical model designed to minimize transportation costs is proposed to measure the benefits of such a strategy. Results demonstrate a 1.2% reduction in transportation costs from eliminating subcontracting requirements when trucks are pooled among cooperatives. Although case specific and influenced by the local availability of contract trucks, these findings highlight the potential for efficiency gains and cost savings through freight capacity pooling, while promoting sustainable practices and enhancing competitiveness for forestry companies.

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