The Significance of IoT Technology in Improving Logistical Processes and Enhancing Competitiveness: A Case Study on the World’s and Slovakia’s Wood-Processing Enterprises

Abstract

The wood-processing industry currently does not sufficiently use modern technologies, unlike the automotive sector. The primary motive for writing this article was in cooperation with a Slovak wood processing company, which wanted to improve its logistics processes and increase competitiveness in the wood processing sector through the implementation of new technologies. The aim of this article was to identify the positives and limitations of the implementation of Internet of Things (IoT) technology into the wood processing industry, based on a secondary analysis of case studies and the best practice of American wood processing companies such as West Fraser Timber in Canada, and Weyerhaeuser in the USA. The selection of case studies was conditional on criteria of time relevance, size of the sawmills, and production volume in m3. These conditional criteria reflected the conditions for the introduction of similar concepts for wood-processing enterprises in Slovakia. The implementation of the IoT can reduce operating costs by up to 20%, increase added value for customers, and collect real-time data that can serve as the basis for support of management and decision-making at the operational, tactical, and strategic levels. In addition to the secondary analysis, methods of comparison of global wood processing companies, synthesis of knowledge, and summarization of positives and limitations of IoT implementation or deduction were used to reach our conclusions. The results were used as the basis for the design of a general model for the implementation of IoT technology for Slovak wood processing enterprises. This model may represent best practice for the selected locality and industry. The implications and verification of the designed model in practice will form part of other research activities, already underway in the form of a primary survey.

Industry 4.0 towards Forestry 4.0: Fire Detection Use Case

“…Based on industry 4.0, the authors of [30] introduced the concept of forestry 4.0. they showed the implementation of forestry 4.0 with multi-domain systems. The authors of [31] discussed the advantages and limitations of using IoT for wood processing in industry. Many studies discussed industry 4.0 in several field including economic and business [32], information sharing [33], technologies and applications [34], future trends [35] and industry 4.0 in the wood industry [36] (https: //awfsfair.org/2019/04/industry-4-0-in-the-wood-industry-beyond-the-buzz/).…”

“…However, many studies have been done in connecting industry 4.0 and forestry 4.0 with the help of advanced technologies such as IoT, Artificial intelligence, robots, vehicles and etc. [37], industry 4.0 application to forestry [30], wood processing [31], digitization in wood supply [38]. The authors of [39] discussed Internet of improving the forest sustainability.…”

A Systematic Review on Technologies and Industry 4.0 in the Forest Supply Chain: A Framework Identifying Challenges and Opportunities

“…Several technologies are applied in the production phases of the forest supply chain. Šulyová and Koman [58] proposed a platform that applied IoT technology in wood monitoring wood processing in sawmills. This platform integrated RFID technology monitors, QR codes, a mobile application called SmartTree, a website, and a Cloud platform to provide real-time data to support management and better decision-making.…”

“…Simulation [36,69] IoT [54] UAV [51,52] Data analytics [52] TLS [51] GPS [51] Smartphone application [51] Forest inventory ALS [53] UAV [51] TLS [51] Smartphone application [53] Planning Simulation [40] Machine learning [55] Procurement Simulation [56,57] Blockchain [70] Harvesting Simulation [56] UAV [51] TLS [51] RFID [51] GPS [51] Smartphone application [51] Production-sawmill Simulation [36] AI [59,60] Machine learning [55] IoT [58] GPS [58] RFID [58] Smartphone application [58] Could technology [58] Production-biofuel factory Simulation [50,61] GIS [50,61] Production-bioethanol factory GIS [44] Production-biomass energy plants GIS [46] Transportation-forest chips Simulation [32,35,39,42,43,63], GPS [42], GIS [39,42,43,63] Transportation-wood/timber Simulation [33,…”

Determinants preventing the implementation of green growth and sustainable development in enterprises in the Slovak wood-processing industry

“…The wood-processing industry has a long tradition in Slovakia and represents one of the most important traditional industries on which it is possible to build the development of ecoinnovation in the conditions of the Slovak Republic (Šulyová and Koman, 2020).…”