A Customer-Orientated Profitability Model for an Australian Timber Company
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CONTRIBUTORS:
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PROCEEDINGS TITLE:
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YEAR:
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2004
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PUB TYPE:
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Conference Paper in Proceedings
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PAGES:
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n/a -
n/a
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SUBJECT(S):
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production planning, timber industry, customer orientation
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DISCIPLINE:
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Business/Management
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HTTP:
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LANGUAGE:
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English
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PUB ID:
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103-404-553
(Last edited on
2004/07/09 17:42:18 GMT-6)
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SPONSOR(S):
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ABSTRACT:
In the timber industry, production-orientation is so strongly entrenched that even today the needs of the customer are often overlooked. This paper positions the production setting of the timber industry, with the aim of developing a generic profitability model that may assist in the adoption of a customer-orientated production management approach that is better suited in today’s timber supply chains. The unit of analysis is an Australian timber company engaged in the growing, harvesting, milling, selling and delivery of softwood timber. An efficacy model is suggested, using the input measure of aggregated supply chain cost and an outcome measure of aggregated revenue, avoiding the distraction of transfer pricing and offering a more balanced view across the supply chain.
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