Our proven concept

Share of the total savings - normally summed to between 5%-20% per year of total inventory value.

The forestry industry has mapped 700.000 spares - in collaboration

It all started with one of the bigger forestry owners in the Nordics. They wanted to create a good structure in their spare parts management and started to map spare parts themselves. While they understood how extensive this work is, they realized that everyone else has to do exactly the same job and that this does not include any business-critical information. The company that had already started simply invited the others to sit around the same table and instead share the burden.

The market cap of participating forest asset owners is 50 Billion Euros and in collaboration, they have mapped a common digital inventory of 700.000 spares

Value created for asset owners in the forest industry

With this collaboration they have managed to:

  • Move purchases from the OEM and wholesalers to the direct manufacturer

  • Create a collaboration where they exchange spare parts directly between asset owners – done on a weekly basis

  • Reduce inventory

  • Mapping alternative suppliers in collaboration

  • Reduce and simply inventory requirements

  • Making each other aware of components becoming obsolete

11 different value streams

Share of the total savings (normally summed to between 5%-20% per year of total inventory value)

Production losses not included in these numbers

The pie chart above has been given to us by the forestry collaboration. By sharing this we want to communicate that it is not only a proven concept but also a well documented concept that has clearly developed to supply the collaborators with a long range of value streams.

Asset owners in collaboration changing the industry

Their spare parts collaboration has given the forestry asset owners fantastic results:

  • The companies that manufacture the components have joined their collaboration. They update their spare part data directly to their common database. The component manufacturers sit on the most valuable data: the components' master data. Most of the component manufacturers in the forestry industry are also found in the wind industry! SKF, ABB, Schaeffler etc. When we contact these component manufacturers, we can tell them their company has already applied this way of working in another sector. It’s more convenient for component manufacturers to update one database than every client.

  • By setting demands in collaboration, the asset owners have achieved the condition that companies who want to sell them a machine must have all the components in this machine mapped in their spare parts cooperation.

  • By setting demands in collaboration, the asset owners have created a standard and simplified spare part management for everyone.

  • The forestry industry has managed to have its machine suppliers join. That would mean that Vestas, Siemens, and Nordex would work directly within our spare part collaboration, updating spare part data. When visiting the forestry industry and having a guided tour of their system, one could see Siemens being part of their collaboration and being completely transparent.

We are aware that the forestry industry is a much more mature industry. Nevertheless, the achievement is a wet dream for the wind industry, and the first thing to do is to get started.