Wood Fiber Supply Chain Relationship Workshops July 2017

The Forest Resources Association is the only national advocacy organization for wood supply chain companies including wood consumers, landowners, and suppliers. We focus on the safe, efficient and sustainable harvest of forest products and their transport from woods to mill, and advocate on federal policies that impact the forest products supply chain. Learn more about FRA by visiting the website: www.forestresources.org

Workshop Objective To constructively identify factors that enhance, and factors that strain, the mill-wood supplier business relationship. The program works extremely well in constructively identifying the factors that enhance, and the factors that strain, consuming mill/wood supplier business relationships.

Supplier-Consumer Workshop – Introduction Designed to open communication between mills and suppliers Facilitated by FRA staff at your location Get results specific to your location

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Wood Fiber Supply Chain Relationships Workshops 2,000+ suppliers 150+ locations 25 states

Note – FRA has also successfully conducted this workshop for large landowners, with the landowners and land managers being one party, and contract loggers being the other party. There may be other applications of this proven format as well, which FRA would be happy to discuss.

Wood Fiber Supply Chain Timberland Wood Consuming Mill Consuming Mill Timberland Owner Supplier Wood Procurement Manufacturing FRA’s members

Meet separately to identify and record positive as well as strained factors. First the wood supplier group and the mill personnel groups meet separately. Under the guidance of a trained FRA discussion leader each group identifies and records those positive business factors that enhance the business relationship, as well as those factors that tend to strain the business relationship—or “opportunities for improvement.”

Meet together to review positive & strained factors Develop possible solutions Move items from strained side to positive side

Ground Rules Any factors affecting the business relationships can be aired in Workshop Sessions except those that may violate antitrust laws like: Individual contract rates Purchase prices Competitive stumpage bidding Other items that violate anti-trust law

What is discussed at these workshops? Wood quality and wood specifications Truck unloading issues Wood inventory Wood yard policies Safety Truck turn-around time NOT prices or contract rates (anti-trust issues)

Sample Workshop Schedule 3:00 PM-3:25 PM - Welcome, Self-introductions, Workshop Objectives, Ground Rules, Schedule, etc. 3:25 PM-5:10 PM – Wood Supplier Issues Breakout Session 3:25 PM-5:10 PM – Mill Issues The program works extremely well in constructively identifying the factors that enhance, and the factors that strain, consuming mill/wood supplier business relationships

Sample Workshop Schedule 5:10 PM - 6:00 PM – Dinner 6:00 PM - 7:55 PM – Final Group Session 7:55 PM - 8:10 PM – Closing Remarks, Workshop Critique, Workshop Follow-up Activities. The program works extremely well in constructively identifying the factors that enhance, and the factors that strain, consuming mill/wood supplier business relationships

FRA Supplier – Consumer Workshops Can build: Commitment Trust Reduced costs Greater efficiency

What Past Attendees Have Said: “I think it’s an excellent forum for two sides of a business that need each other to get together and understand each other’s issues” – logger “I was surprised at how simple some of the issues were to solve” – mill manager

“My advice to anyone out listening to this program would be to give it a try. I was somewhat skeptical at the beginning, because I thought it would be sort of a very controversial type meeting and that we really wouldn’t get anything done. As it turned out, we really got to some of the primary issues and found that people in the wood supply business are just like the people that work in our woodyard, and everybody wants to do the right thing and get the business done.” Chuck Bogatie, Mill Manager

Who participates? Company Personnel Wood Suppliers General manager Plant manager Unloading operator Scaler Wood procurement team Others as appropriate Total group 8 - 15 A representative sample of wood suppliers If trucking issues may surface, then some truck drivers as well Total group size 12 - 18

To conduct a workshop: Contact your FRA Regional Manager Can also contact Deb Hawkinson at dhawkinson@forestresources.org, (202) 296-3937  Cost is $1,000 workshop fee, plus FRA facilitator direct travel costs and meal / facility charges Typically $2,000 to $3,000 total cost Set workshop date ~2 months ahead of time Company commitments at this time Invitations to suppliers a month ahead of time Follow-up shortly before workshop

Workshop Experience Randy Blomberg, Blomberg Logging Chairman, FRA Supplier-Consumer Relations Committee D.J. Aderman, Futurewood Corp Vice-Chair, FRA Supplier-Consumer Relations Committee

Questions & Discussion

www.forestresources.org