ForestExpress launched as an independent e-commerce operation in 2000 backed by leading forest products companies including Boise Cascade Corp, Georgia-Pacific Corp, International Paper, MeadWestvaco Corp and Weyerhaeuser Co. It was conceived as a way to provide a shared, industry-wide platform for e-commerce which would facilitate “standards-based transactions” and offer a range of e-business services.

Today, ForestExpress operates as an industry-supported e-business solutions company providing business to business links and online catalogue services for forest products and paper, along with transaction services for buying and selling timber via the ForestExpress Timber Trading Center.

The central component is the Forest-Express network hub (or data exchange platform – DXP). It enables the industry to replace multiple trading partner communications with a single secure link to the hub. Trading partners can connect to as few, or as many, trading partners as they choose.

The ForestExpress Timber Trading Center hosts real-time transactions for delivered products and stumpage, enabling users to initiate offerings and choose from various formats such as reverse auctions, multi-product purchase events, and lump-sum stumpage sales. Among the benefits it cites are market and price discovery, process efficiency gains, and transport rationalisation.

To date, over 5,000 timber transactions (worth US$70m) have been hosted through ForestExpress, “creating over US$8.5m of value for customers”. And it says this is just the start as more landowners, foresters, and wood suppliers are now planning to move into internet trading.

&#8220We acknowledge the difficulty of persuading people to change the way they work, but know that those who have made the transition to internet trading are pleased with the significant bottom line results”

ForestExpress spokesperson

Managing contracts online

Meanwhile the ForestExpress Timber Contract Center enables buyers and suppliers to view or manage timber purchase contracts, match scale tickets delivered against them, print gate passes and easily communicate timber source information electronically. This is yet another step towards helping industry to reduce transaction costs, eliminate process inefficiencies, and get fast access to better information.

Each week, its ‘Scale Ticket Clearing-house’ alone is moving tens of thousands of scale tickets from buyers to suppliers.

Primary capabilities of the Timber Contract Center include the ability to create or search contracts by buying company, location or contract number; amend existing contracts and view amendment history and “drill down” to scale ticket detail. According to Forest Express, the facility reduces or eliminates data entry errors, streamlines work processes, means fewer phone calls and faxes, and eliminates manual distribution of gate passes. It is also claimed to improve transaction visibility, provide better security, and make easily accessible data that can be used to gauge performance.

“We acknowledge the difficulty of persuading people to change the way they work, but know that those who have made the transition to internet trading are pleased with the significant bottom line results,” said a ForestExpress spokes person. “With a solid foundation for e-commerce in place, we predict a busy future that centres on moving more and more of our industry’s trading and transaction support activities online