CMPC Mininco implements Savcor Zenith to maximise overall efficiency of Forest Management
The Business Challenge – Maximizing Overall Efficiency of Forest Management
Forestal Mininco, forestry arm of the Chilean forest products group CMPC manages 565 million hectares of pine and eucalyptus forests. The wood is used in their own production facilities to produce pulp, paper and sawn goods for the global market. CMPC is one of largest integrated forest companies in South America.
Mininco’s management team saw that complex business processes in forestry planning did not always match the reality and there was opportunity to improve the efficiency by perfecting the business processes and implementing IT solutions that are able to capture the business reality. Their main aim was to have a solution that covers all stages of the value chain from contracts to payments with a seamless integration to their corporate SAP system. Accurate and real time stock management was also considered an important part of the project. The team believed that better, more efficient and real time forest management would improve their financial results.
CMPC Mininco worked with Savcor Forest of Sao Paulo to implement a solution that maximized the efficiency of the forest management activities. The solution provided by Savcor used its Zenith modules for Contracts, Operational Control, Stock Management, and Financial Management to fully integrate the business processes and to add flexibility – with the goal of maximizing the overall efficiency of forest management.
The Savcor Zenith Forest Management Information System can be applied to any forest management situation – plantation establishment, inventory, operational planning, harvesting, logistics, investment planning, biodiversity, certification, chain of custody and many more.
The Benefit – Accurate and Real Time Management of 9.4 Mm3 of timber per year
Through the use of Savcor’s solutions, CMPC Mininco is better able to control the value of their timber flow, which has resulted in a transparent and efficient management of their key asset. Total value of timber that is handled by the Zenith solution is around US$38 million per month.
While the financial benefits are important, there are several softer benefits that impact Mininco’s complex value chain. These include integrity of information which means that risks of errors are minimized; accuracy of stock and activities valuation providing correct basis for payments and flexibility to implement new functionalities resulting in fast and low cost of further evolution of the management processes. All this gives Mininco solid basis to maximize profitability of their forest operations and the relationship with their clients and service providers.
Mr. Felix Contreras, the Administrative Manager of CMPC Mininco comments that the improvement project of the forest management system was a strategic decision. We evaluated potential solution providers very carefully. Savcor was selected because of their international focus supported by a very strong local forestry and IT competencies. “Since we implemented Savcor solutions, we are able to have full control of the forestry assets that were once managed in various stand-alone systems including spread sheets. As a result we have greater efficiency and this has resulted in profitability gains.”
10 May 2011