What’s Your Problem?Best Practices in Forest Management

Winning Technologies in Winning Technologies in ForestryForestryJanuary 2007January 2007

Doug JonesDoug JonesDirector, Client ServicesDirector, Client Services

Road Map:

•Overview

•Solutions over time and across regions•Evolution of management challenges•Global perspective

•Final Remarks

Corporate Overview

Remsoft Spatial Planning System

Remsoft creates and supportsthe world's leading softwarefor sustainable, spatial management planning.

Clients in five continents

• North America• Europe• Australia• South America• Asia

Remsoft’s clients include

International PaperCanforUPM KymmeneWashington StateRayonierStora EnsoBowaterSuzanoMeadWestvacoForestry TasmaniaPotlatchWeyerhaeuserGMOPlum Creek Timber CompanyHancockGlobal Forest Partners

Over 200 million acres world-wide

The Remsoft Spatial Planning System

Commercial off-the-shelf3 fully integrated products

• Spatial Woodstock• Stanley• Allocation Optimizer

Solutions over time and across regions

What were the challenges of the time?

What solutions were provided over time?

How were the solution needs similar and different between geographic regions?

Early to Mid 90’s

Software - Woodstock• Developed as a simulation forest modeling

system• Optimization added in 1992• DOS based system

Pre-Windows User Interface:

Early to Mid 90’s

Geography• Eastern Canada, Alberta

Challenges and Solutions• Forest estate modeling • Sustained yield and coarse ecosystem

objectives• Management complexity increasing • Finance was not the driving force

1995…2000

Software - Stanley• Developed for spatial modeling• ESRI GIS coverages…e00 files• Linked with Woodstock

Spatial Harvest Scheduling

1995…2000

Geography• USA – Champion International, Temple-Inland

Challenges and Solutions• “Commercial” optimization model• Detailed financial modeling

BUT….• Adopting SFI – spatial constraints

1995…2000

Geography• Canada – Domtar, Fraser Papers,

Weyerhaeuser, Ontario Gov’t…

Challenges and Solutions• Optimization being accepted • Regulative environment – including

spatial constraints• Evaluate policy – what is the cost?• Spatial scheduling is time consuming

2001

Software – Spatial Woodstock• Analysts’ toolbox• Spatial integration for improved data

interchange, reporting, mapping• ESRI standards• Fully integrated solution

The RSPS Interface

2001

Geography• New Zealand and Australia

Challenges and Solutions• Financial modeling• Differences between countries• Some firsts:

• Carbon modeling• Short-term models• Allocation modeling

2003

Software – Allocation Optimizer• Wood allocation modeling• Demand and supply• Fully integrated with Remsoft system

Wood Fiber Allocation

Sawmill

Sawmill

Pulpmill

Chip By-product

Purchase Logs

DestinationDestinationss

Forest Forest ProductsProducts

Forest Forest OriginsOrigins

Residual Residual ProductsProducts

External External ProductsProducts

2003

Geography• New Zealand

Challenges and Solutions• Approach to land valuation• Demand drives value• Strategic, long-term modeling

2003

Geography• Eastern Canada – J.D. Irving and others…

Challenges and Solutions• “Short-term”, detailed wood allocation

model• More value from the resource• Mergers and aquisitions• Supply problems; react to market

conditions

Present day….

Geography• USA, Canada, Aus/NZ, South America…

Challenges and Solutions• Land valuation – selling and buying• Business objectives• Land appraisal – income approach• Flexibility

• Multiple investors • Varied regions, forest composition, data• Turn around time• Common system

Present Day…

Geography• Brazil and Uruguay

Challenges and Solutions• Wood supply issues• Fully integrated solution• Supply chain modeling• Tight information linkages between forest and

mill(s)

The Future…

Challenges and Solutions• Ecosystem and non-timber values

• Spatial landscape modeling• Carbon modeling• Linkage to other technologies

The Future…

Challenges and Solutions• Ecosystem and non-timber values• Fully integrated planning solution

• Supply chain modeling• Moving more towards operational planning• Different users of the system

The Future…

Challenges and Solutions• Ecosystem and non-timber values• Fully integrated planning solution• Software framework

• Linkages with other technologies• Standard business applications, reporting

Thank you

Doug JonesDoug JonesDirector, Client ServicesDirector, Client Services