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A Customer-Orientated Profitability Model for an Australian Timber Company

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CONTRIBUTORS:
  Author Palmer, Peter
  Author Selen, Willem
PROCEEDINGS TITLE:
  Second World Conference on POM and 15th Annual POM Conference
YEAR: 2004
PUB TYPE: Conference Paper in Proceedings
PAGES: n/a - n/a
SUBJECT(S): production planning, timber industry, customer orientation
DISCIPLINE: Business/Management
HTTP:
LANGUAGE: English
PUB ID: 103-404-553 (Last edited on 2004/07/09 17:42:18 GMT-6)
SPONSOR(S):
 
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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