Business management and digital software are everyday parts of most organisations’ workflow.
ERP offers tools that all departments can adopt to better manage key elements of their operations, from inventory management to accounting and purchasing – with the key driver being the effective management of data that can be accessed by many users at any time.
New tools for new challenges
At the start of 2024 some of the key challenges that timber firms face are tied to IT and digital tools. “We see three key challenges as the timber industry undergoes a major transformation, says Kristian.
“Firstly, the demand for increased sustainability, secondly the need to develop new products and thirdly increased internationalisation.
“These are interlinked and it is essential they are tackled in a co-ordinated way.
“The answer to these challenges – and the wider transformation of the timber industry – is digitalisation. Digitalisation, including cybersecurity, cloud-based solutions and future-proof ERP systems to ensure international competitiveness are the major IT topics in the timber industry.
“To be able to streamline their operations, reduce their climate footprint and create greater competitiveness, wood product companies now need modern IT support to help them succeed.
“With so many changes that have taken place in recent years it has become increasingly important for these companies to adapt their operations to the future.
“Limited supply and increased costs for raw materials, transport and energy require efficiency improvements through digitalisation.
“What we are seeing in the transition to a more sustainable world is a demand for wood as an alternative to steel and concrete in property construction.
For example, wood fibre is an incredibly adaptable and attractive resource for many industries.
Its renewable nature and high environmental credentials have led to increasing pressure on the availability of it as a raw material, so managing efficiently and sustainably managing supply is more important than ever.
“Therefore, efforts to combat climate change creates unique opportunities for the timber industry. However, it also creates new demands, for example new product development and international deliveries, as well as new legal requirements and certifications.
“All of these can be efficiently managed by a smart, adaptive IT system.”
Are the costs worth it?
There are many costs involved in upgrading IT systems and embedding new ways of working and the timber sector has been under financial pressures for many years both before and after the pandemic – is the investment worth it?
“The reality is that the entire timber industry must take important steps today to maintain its profitability in the future,” says Kristian.
“The whole issue of raw material supply and prices will come to a head in the coming years.
“In addition, vertical integration has been an important component for a number of companies for some time now.
“This is especially true as we see a transition from mass-produced products from the sawmill industry to high-quality structural timber products, which significantly increases the requirements for efficiently designed processes.
“This is where a high-quality ERP system really delivers value, by streamlining and managing the entire vertical integration.
“Undoubtedly, the biggest trend is the move towards the Cloud or Software as a Service (SaaS) as opposed to managing all your IT on-site or in-house.
£As well as a technology change this is a mindset change where we should not view IT as a task but as a solution and a service that is constantly working to help make business better.”
Many companies – and individuals – are nervous about the Cloud and cyber-security, whether because of perceived loss of control or data loss risks.
How would you respond to those concerns?
“I understand,” says Kristian.
“Especially when things have been the same for such a long time.
“Many companies are still working on local systems: however, my view is that these are not only more complex to manage, but also pose a significant security risk.
“They are also difficult and expensive to maintain and keep up to date.
“However, high quality cloud-based systems can increase security and service quality, simplify updates and provide far more flexibility.
“Cloud-based solutions are not only continuously maintained and updated in accordance with current security standards, but also provide access to functionality that would represent a major expense for individual companies.
“TimberTec is pragmatic and can combine the best of both worlds, using cloud systems due to the advantages already mentioned, whilst also continuing to work with on-premises computing that is continuously synchronised with the cloud.”
As outlined by Kristian Kristian Niklasson, the shift towards a sustainable net zero future creates opportunities as well as challenges and a modern, cloud-based, industry specific ERP solution is fundamental to managing these efficiently.
More at www.timbertec.com
