confOrganiser.com - Work: ORGANISATION OF PROCUREMENT IN WOOD SUPPLY CHAIN: IMPROVEMENT POSSIBILITIES IN SOUTH MORAVA FOREST AREA

ORGANISATION OF PROCUREMENT IN WOOD SUPPLY CHAIN: IMPROVEMENT POSSIBILITIES IN SOUTH MORAVA FOREST AREA

1. Dragan Mihajlovic, University of Belgrade-Faculty of Forestry, Kneza Višeslava 1, 11030 Belgrade, Serbia
2. Jelena Nedeljkovic, University of Belgrade-Faculty of Forestry, Kneza Višeslava 1, 11030 Belgrade, Serbia
3. Nenad Ranković, University of Belgrade-Faculty of Forestry, Kneza Višeslava 1, 11030 Belgrade, Serbia
4. Branko Glavonjić, University of Belgrade-Faculty of Forestry, Kneza Višeslava 1, 11030 Belgrade, Serbia
5. Dragan Nonić, University of Belgrade-Faculty of Forestry, Kneza Višeslava 1, 11030 Belgrade, Serbia

The problem of procurement in companies engaged in the production of furniture and wood products in Serbia is complex. It depends on the organization and characteristics of forest-wood chain, regulations and overall organization and activity flows from forest as a source of raw materials to production of final products. The aim of the research is to determine the possibilities for improving the organization of the procurement within the wood supply chain in the South Morava Forest Area (SMFA).
The data were collected in the period 2014-2017, by interviewing employees of Public enterprise „Srbijašume“ (Forest Estate "Vranje") and surveying 13 representatives of small and medium enterprises and 1 large company (SIMPO joint stock company). Thus, two questionnaires were used: for interviews (8 open questions) and for survey (80 closed and Likert's scale questions, of which 17 were used for the purpose of this paper).
The employees of the Forest Estate "Vranje" stated that the current situation in the SMFA is characterized by an unfavourable structure of beech coppice forests, insufficient use of private forests, and inadequate forest openness. Respondents reported that transport companies do not meet requirements of provided services quality. Despite that the demand is higher than supply, large consumers do not use the benefits of annual contracts.
The research shows that wood sector in the SMFA comprises 131 enterprises in 2014. The majority (79.0%) of analyzed companies are micro and small, founded (64.3%) less than 10 years ago, and have (78.6%) a functional organizational structure. Of the analysed enterprises, 35.7% is exclusively engaged in sawmill and wood processing.
All companies purchase and use beech technical roundwood. Most of them (57.1%) purchase and use only beech roundwood, while a smaller number (42.9%) in addition to beech roundwood, use technical roundwood of other species (poplar, conifers, oak). Wood raw material is purchased from the public and private sectors, none of which has a dominant position in the supply. Transport of raw materials is carried out through intermediaries (92.9%) and on "bad" and "very bad" (71.0%) infrastructure. However, the majority (92.9%) of them is "partially satisfied" and "satisfied" with the quantity and quality of delivered raw materials. There is a significant presence (86.0%) of enterprises, which, in addition to technical roundwood, procure and use other wood products (fibreboards and other reproduction materials) from suppliers from other regions, except SMFA.
The current situation at the SMFA indicates difficulties in increasing the supply of raw materials without the external impetus, especially when it comes to the construction of forest communications and theincrease of mobilization of resources from private forests. Moreover, an opportunity for improvement is the signing of mutual agreements between wood supply chain participants on the shortening of deadlines for the delivery of beech technical roundwood as well as the development of individual or joint projects which could be financed from national and international funds. Furthermore, state support is necessary in terms of creating more favourable conditions for the overall liquidity of all participants in the wood supply chain.

Key words: supply chain; procurement; wood raw materials; forestry; Serbia

Thematic field: Šumarska politika, ekonomika i organizacija

Date: 10.08.2017.

Forest Science for Sustainable Development of Forests
25 Years of Forestry of the Republic of Srpska


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