Application Of Radio-Frequency Identification To Improve Forest Transportation

RFID technology has been in development since the 1940s (GAO 2005). The basic system consists of a tag, a reader, and a database

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Description

Application of Radio-frequency Identification to Improve Forest Transportation Logistics

Bob Rummer, US Forest Service
Craig Rawlings, Montana Community Development Corporation

Caption: The RFID tags were attached to the Slash Bins. These are passive chips, used to uniquely identify each bin

Introduction
Forest harvesting in the U.S. is a very mature industry that faces increasing economic pressure. Global competition for commodity products like paper and lumber has led to structural changes such as mill closures and regional shifts in production. Changing land ownership and management have also shifted forest production from historically forestdependent areas. These dynamic forces confront logging businesses with significant economic challenges. Stuart et al (2006) developed a Logging Cost Index based on detailed reporting from a group of contractors in the southern U.S. Their data show that the cost of logging increased 40 percent in a 10-year period (1995 to 2005) while the price received for logging services declined by 10 percent. Contractor operations must continuously find more efficient operational models to survive.

One approach is to use new technology to improve efficiency and reduce costs. While production efficiency through mechanization has been thoroughly exploited, relatively little development effort has focused on improving efficiency through better management control of operations. The majority of forest operations contractors in the United States are relatively small, independent business units organized as sole-proprieter enterprises. Their management information systems (MIS) typically consist of monthly billings, production reports, and direct observation of daily operations. A constant challenge of the small business is to track this data in a manner that allows the business owner to manage work flow and cost recovery.

Cambium Forstbetriebe has developed a more sophisticated MIS for logging using technologies of radio-frequency identification (RFID), global positioning (GPS), enterprise resource planning (ERP) and global system for mobile communications (GSM). The Cambium Log Tracking System (LTS)1 manages information about cut logs through the forest operation from felling to customer delivery. A passive RFID tag inserted in the butt of a log provides a unique object identifier. Forest workers with readers at each processing step record various attributes of the log such as location, grade, ownership, etc. This information is communicated to the ERP system where appropriate reports are generated and shared back to inform subsequent processing operations. For example, the report of skidded logs can be used to generate a loading request for truck transport. Cambium handles approximately 70,000 m3 of sawlogs per year. The LTS produces savings through reduction in lost logs (currently 10 to 15 percent of total volume) and improved efficiency in managing reporting and accountability (Kasturi, 2005).

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Additional Information

Web Site: http://smallwoodnews.com/Docs/PDF/Supply/RFID%20Report.pdf

Category: Forestry>Forestry Equipment

Region: All US

Ad Running: 6/9/2009-6/9/2011

Ad Posted: 6/9/2009 12:26:42 PM

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