Towards a Supply Chain Integration Based Business Model:
a small Swedish sawmill longitudinal case study
30th jan. 10:20-10:40 Jarkko Erikshammar Luleå University of Technology
Sawmill Jargon
• Added value : Processes that are added on sawn, sorted and dried timber, i.e. planed, pre cut, surface treatment, etc.
• Timber yield: The yield of the forest, i.e. long, short, thick timber
• Timber optimization: optimization of single timber lumbers
purpose .
Explore the relation between components in a business
model framework in the
sawmill industry for SME,
based on the shift towards an increased focus on supply
chain integration.
Why is SCI
important
for SME
sawmills?
Low bargaining power
(Porter, 1998)
SME Sawmill
Economic Recession
Structural change (Warensjö, 1987)
Production focus (Lathinen, 2008, Bush et al, 1991)
Business model component
Description
Market position
The position of the company in the targeted and segmented market relative to competitors and the
company’s competitive advantage and also the channels used to distribute the offering.
Offering
The offering, products and services, that are presented to the customer stating the value created and the
mechanisms that are used to appropriate the value created.
Operational platform
The internal and external resources, processes and
activities to create and deliver the value proposed in the offering
What is
industrialized
house-building ?
Modern methods Off-site production
Industrialized Building
SystemsBuilding
Industrialised housing
Prefabricated housing
Project 1 Project 2
Project …
Project n
Findings .
Erikshammar, 2012
Forest Sawmill Builders
Merchant Contractor Client
Forest Sawmill Contractor Client
method.
• longitudinal case study.
• analysis of process data.
Process data 2010-2012.
Findings.
Business
model concept
Key factors
Market positioning
New customer segmentation, branding and differentiation, new channels by direct delivers instead of through resellers
Offering New revenue model not based on cubic meters, articulate offering, close customer interaction instead of passive order taking
Operational platform
Dedicate roles for supply chain coordination, A structured integration development process, defined interfaces,
technology platform for exchanged information but also to deliver products, adding value to the simple products
Supply Chain Integartion
Managerial implications
Sawmill Resources:
yield,
processes, Knowledge relations
Needs for the new Business
Model
Effective use of current relationships
External supply,
procurement, cluster
”perfect match Change
future research direction.
• explore a sawmill transition from single minded focus on raw material
optimization and increased production efficiency towards supply chain
integration.
• Business model / Planning / Operations
• Strategic / tactical / operational
thank you!
contact .
jarkko.erikshammar@ltu.se
@Jerikshammar / @Leantimber Jarkko Erikshammar
+46 920 491 860
http://www.ltu.se/research/subjects/Trabyggnad/kontakta-oss/jarkko-1.44434?l=en
