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<strong>Handbook</strong> <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong> 2006 ir. R.G. Wijers/ ir. J. Raggers (external use)<br />

1<br />

<strong>Handbook</strong> <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong><br />

(Specialisation year 3 and 4)<br />

Larenstein University of Professional Education Major <strong>International</strong> <strong>Timber</strong><br />

<strong>Trade</strong><br />

Ir. R.G. Wijers<br />

Ir. J. Raggers<br />

Velp, January 2007<br />

Description and organisation of the<br />

Major <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong>


Contents:<br />

1. Introduction<br />

2. Job profile description<br />

3. Overview of themes and credits (ECTS)<br />

4. Theme marketing of wood products (year 3, term 1, 2)<br />

5. Theme timber trade and wood science (year 3, term 2)<br />

5.1 Introduction in timber trade<br />

5.2 Wood science and technology<br />

6. Theme timber and timber trade (year 3, term 3)<br />

6.1 Organisation and commerce<br />

6.2 <strong>Timber</strong> trade and technology<br />

6.3 Wood quality and grading<br />

6.4 Engineered wood products<br />

6.5 Utilisation of timber<br />

6.6 Logistics<br />

7. Module description of practical training (year 3, term 4)<br />

8. Module description of practical training (year 4, term 1)<br />

9. Theme policies and business development (year 4, term 2)<br />

7.1 Certification and illegal harvesting<br />

7.2 Business developments<br />

10. Module description of thesis (year 4, term 3 and 4)<br />

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1. Introduction<br />

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Wood is a unique material with unique properties. Not only is it much in demand for its usefulness and<br />

its beauty, it is also the ultimately renewable resource – no small advantage in a world whose<br />

population is still growing fast. Wood also represents a trade of enormous international scope and<br />

complexity. In fact, the flow of wood products is so great that it represents the world’s second largest<br />

flow of goods – one that involves long and complicated processes of transport, processing and<br />

manufacturing. Taken together, these factors represent a wealth of exciting international career<br />

opportunities in a sector that is in urgent need of skilled young people.<br />

This document describes the job opportunities and in brief the modules of the two-year international<br />

Bachelor course which is integrated within a four-year programme in Forest and Nature Management<br />

taught to Dutch students. It can also be attended as a top-up programme, or as part of another<br />

European Bachelor course. The objectives and topics of every course component and also information<br />

about the study material is given.<br />

In 2002, this education programme was initiated by Larenstein University of Professional Education<br />

and the forest- and timber industry of the Netherlands. Recent developments concerning the<br />

globalisation of the world markets and the age distribution of the professionals with in the Dutch<br />

timber and forestry sector, (a high percentage of workers on management level are above 45 years of<br />

age) results in a need of well oriented international professionals.<br />

2. Job profile description<br />

2.1 General characteristics of the profession<br />

Students who have successfully completed the programme <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong> are working in<br />

the fields of purchasing/ selling and production of wood or wood based materials and the consultancy<br />

in certified wood products.<br />

Characterisation of companies for graduates:<br />

• Large and semi large timber trade companies focused on the international market.<br />

• Multinationals trading worldwide in timber products<br />

• National and international timber producing companies<br />

• Research and consultancy company in the field of certified timber<br />

Possible job-positions<br />

In the table shown below you can see the professional groups with the starting position:<br />

Professional group Starting position<br />

• Purchasing Assistant purchaser<br />

• Quality control Quality controller<br />

• Product manufacturing Product developer<br />

• Sales Salesman, assistant sales manager<br />

account manager<br />

• Certification Assistant project manager


After a number of years graduates can develop in different ways to<br />

become specialists or generalists. Job opportunities are sales<br />

managers, purchasers, account managers or head of departments or companies.<br />

Recent developments<br />

At this moment there are a number of developments going on. A few of them are:<br />

• Globalisation of markets of timber and timber products;<br />

• Growing competition and cost-consciousness, decrease of margins (profit);<br />

• Focus on efficiency in logistics, stock management, “just in time” (JIT) delivery;<br />

• Increase in scale of companies;<br />

• Continuing developments in ICT<br />

• Certification of forests and chains because of growing awareness of the public.<br />

These developments ask for graduates who can develop themselves in a rapid way and have the skills<br />

to learn quickly. This means that graduates have to educate themselves also after graduation.<br />

The study <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong> has been constructed in such a way that it tries to familiarize<br />

students with the most recent developments and provide them with skills to be able to handel the<br />

tasks they have to fulfil after graduation.<br />

2.2 Typical characteristics of the graduate<br />

General<br />

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Graduates in <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong> are going to work in the field of purchasing, selling, marketing<br />

and consultation of wood and wood based products. <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong>rs have a broad<br />

background and distinguishes themselves in a thorough knowledge of timber and trade.<br />

He or she:<br />

• has the skills to work in multi disciplinary teams.<br />

• is able to manage a project and give support.<br />

• works cost-consciously and is able to control costs.<br />

• works pro-active and is able to seize opportunities.<br />

Overview of roles:<br />

• Purchaser<br />

• Seller<br />

• Communication adviser<br />

• Account manager<br />

• Project manager<br />

• Controller/Inspector<br />

• Adviser<br />

• Entrepreneur


2.3 Overview of professional tasks<br />

Level of occupation:<br />

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Graduates have to fulfil a number of tasks. They are expected to fulfil the below mentioned tasks<br />

within a period of one or two years after graduation.<br />

Logistics/ organisation:<br />

• Purchasing of wood products<br />

• Order management<br />

• Stock control<br />

• Management of flow of incoming goods<br />

Financial:<br />

• Budget control<br />

• Development of price lists and offers<br />

• Administration of contracts<br />

Marketing/sales:<br />

• Sales of wood products<br />

• Advice and feasibility study of client requests<br />

• Maintenance of client relations and searching for destinations for products within client groups<br />

• Acquisition of new clients and projects.<br />

• Placing orders of clients to strategic deliverers<br />

• Informing clients on price and market developments<br />

• Market study on prices of wood products<br />

• Searching for new deliverers, products and sources<br />

• Gathering information, analysing and ordering the information to set up a business plan or<br />

marketing plan<br />

Quality control and product development:<br />

• Product development<br />

• Quality control<br />

Policies and certification:<br />

• Communicating environmental policies to employees and clients<br />

• Bringing together supply and demand of certified wood products<br />

• Counselling and offering guidance to companies who want to have COC certification<br />

• Guidance of forest owners to FSC certification<br />

• Informing and advising clients on the use of certified timber in orders


3. Overview of themes and credits (ECTS)<br />

The competencies of the profession that graduates are going to work in are translated into<br />

competencies of education. These competencies which consist of knowledge, skills and attitudes have<br />

been the foundation of the two-year study programme. Each part of the study-programme is<br />

necessary to prepare students for their future jobs.<br />

The third year comprises one term of lectures and practicals at the University of Agricultural Sciences<br />

(SLU) at Skinnskatteberg in Sweden and two terms of lectures and practicals at Larenstein’s premises<br />

in Velp.<br />

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After completing the first two terms the students will have a basic understanding of different aspects of<br />

trade (especially softwood production and trade) and a basic knowledge of wood science. The third<br />

term will go more deeply into valuating the chain of custody by processing, drying and distribution of<br />

timber and timber products of especially hard woods.<br />

The fourth term, which is spent doing practical work in the timber industry, represents the student’s<br />

first opportunity to experience real working conditions within the sector.<br />

The fourth year begins with a practical period again, followed by a training period on recent<br />

developments in international business, certification and illegal logging at Larenstein in the<br />

Netherlands. The third and fourth terms are spent on preparing a thesis on a professional, industry-<br />

based subject.<br />

Below you see a schedule of the study programme. In chapter 4 you can find more details about the<br />

varoius modules.<br />

Year 3:<br />

Period Theme Code Credits<br />

1,2 <strong>International</strong> course marketing<br />

of wood products<br />

ICM-M/1 23<br />

2 Wood science and technology WOTE-M/1 7<br />

3 <strong>Timber</strong> and timber trade TTR-M/1 15<br />

4 Practical training period 1 STG1ITT-M/1 15<br />

60<br />

Year 4:<br />

Period Theme Code Credits<br />

1 Practical training period 2 STG1ITT-M/1 15<br />

2 Policies and business<br />

development<br />

POL-M/1 15<br />

3,4 Final thesis AOITT-M/1 30<br />

60


4. Theme Marketing of Wood Products (Sweden)<br />

(year 3, term 1, 2)<br />

This theme gives basic theoretical knowledge regarding wood material, wood products, marketing and<br />

selling of wood products at different stages of trade, as well as laws and agreements in wood trade.<br />

Practising in co-operation with enterprises are included. After the course the students will have sound<br />

knowledge of the relation between market demands and the different stages of production: forest-<br />

industry- market. The course will be given in English and is also open for foreign students.<br />

Objective and contents:<br />

After the course the student should have knowledge of:<br />

• Marketing of wood and wood products in a domestic and international perspective<br />

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• The connection between market requirements and the different stages of production process;<br />

Forestry – Industry – Market<br />

• Legislation and agreements in woodtrade (incl. arbitration, contracts, negotiations and cultural<br />

aspects)<br />

• Wood properties relevant for the processing industry and the final wood usage (including<br />

technical and aesthetic characteristics in comparison with alternative materials).<br />

• Swedish wood from an ecological and environmental perspective. Certification of forest<br />

management and wood processing.<br />

• Sustainable forest management and environmentally adapted silviculture and harvesting.<br />

5. Theme <strong>Timber</strong> <strong>Trade</strong> and Wood Science (year 3, term 2)<br />

Description of objectives<br />

After completing the courses of this theme the student should be able to:<br />

• recognize important timber trade species<br />

• understand important timber flows<br />

• analyse the different actors (with their functions ) within the forestry – wood industry chain<br />

• understand physical and mechanical characteristics of wood and its relation to end-uses<br />

5.1 Introduction in timber trade<br />

This introduction shows an overview of the timber business in different countries/continents.<br />

Characteristics of different types of business will be discussed and also relations between forest<br />

management and timber processing.<br />

Topics of the course: structure of Dutch timber industry, softwood business in Western- Europe,<br />

hardwood business in Western- Europe, forest management and timber processing in Surinam, forest<br />

management and timber processing on the Solomon Isles, Forest management and timber processing<br />

in Fiji Isles.


5.2 Wood science and technology (WOTE)<br />

This course is an introduction to the understanding of wood. Main<br />

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emphases are on the relation between the structure of wood, its different physical-, mechanical<br />

characteristics and the different end-uses.<br />

Topics of the course: structure of trees, variation in trees, anatomy of hardwoods and softwoods,<br />

determination of timber, ultra-structures, density of wood, moisture and wood, shrinking and swelling,<br />

moisture content, equilibrium strength and durability.<br />

6. Theme <strong>Timber</strong> and <strong>Timber</strong> <strong>Trade</strong> (year 3, term 3)<br />

Objectives<br />

After completing the courses of this theme the student should be able to:<br />

• understand and analyse the chain of custody of timber and timber products<br />

• how to create added value to timber and timber products within the chain of custody<br />

• understand the relations between customer and suppliers<br />

• write and present a business plan<br />

• present him/herself as a sales man/woman<br />

6.1 Organisation and commerce<br />

The emphasis of this subject lies on the commercial aspects of the timber business and the<br />

organisational structures of the companies involved in it. A number of visiting lecturers discuss the<br />

organisational structure of the timber processing industry, the pricing of goods, and the terms of sale<br />

and trade. Commercial skills are trained in practice. By the end of the course, students will be fully<br />

conversant with the balance sheet produced by a typical timber company and have to present their<br />

own business plan.<br />

Topics of the course: purchasing, sales, cost price calculation, marketing and communication,<br />

financing, investments, introduction of new products.<br />

6.2 <strong>Timber</strong> trade and technology<br />

The overall objective of this course component is to examine the timber trade against the process<br />

whereby wood is transformed from lumber to semi-finished products. To do so, it focuses on the main<br />

issues in primary wood processing: round wood, sawing, drying, and raw-material moulding.<br />

Topics of the course: Creating added values to timber products by sawing, drying and distributing.<br />

Why drying timber? Who’s drying timber? Internal or external drying, moisture in wood, drying factors,<br />

kiln drying equipment, air drying defects, principles of sawing and moulding, practical organisation of<br />

sawing, differences between sawing of softwoods and hardwoods.<br />

6.3 Wood quality and grading<br />

This course explains how the quality of sawn wood is described, and outlines different systems for<br />

grading timber. The quality of hardwood and softwood is examined together with their determinants.


Topics of the course: Variation between boards, differences of<br />

features between hardwoods and softwoods, quality of timber,<br />

principles of classification, classification systems, customers and grading, quality of wood and end<br />

uses, quality control.<br />

6.4 Engineered wood products<br />

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This course on manufactured wood products examines the structure, production, properties and uses<br />

of wood-based panels such as; particleboard, fibreboard, plywood, veneers and massive laminated<br />

panels.<br />

Topics of the course: Wood based panels, laminated wood products, and modified wood products to<br />

improve natural durability.<br />

6.5 Utilisation of timber<br />

In this course different uses of timber will be outlined. We discuss examples of interior – and exterior<br />

end uses. Main question is: what are the different technical and commercial requirements of the timber<br />

in relation to the different end uses? This course has been divided into two parts: excursions to wood<br />

processing companies and lectures.<br />

Topics of excursions: stairs, window frames production, structured building, door production,<br />

production of bridges, production of parquet.<br />

Topics of lectures: garden wood, bridges, window frames.<br />

6.6 Logistics<br />

Objectives<br />

After completing the course the student is able to:<br />

• understand the importance of logistics within timber trade<br />

• calculate the costs of logistics in % of different end products<br />

• recognise developments within the logistic processes<br />

Topics: KPI, Supply chain management, demand and supply patterns, push and pull strategy.<br />

7. Module description of practical training (year 3, term 4; year 4, term 1))<br />

There are two practical training periods within the course <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong> (two times 15<br />

ECTS). A description of the practical training period is given in a separate document which can be<br />

obtained on request.<br />

Requirements for practical training<br />

The work placement has to meet with the following general requirements:<br />

• The traineeship should stretch 12 weeks.<br />

• It should take place in the field of <strong>International</strong> <strong>Timber</strong> <strong>Trade</strong>.


• The practical training has to ultimately support the<br />

accomplishment of the pre-determined learning objectives set by<br />

the students.<br />

• Those hosting the work placement should ensure proper co-ordination.<br />

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• Those hosting the work placement should arrange housing for the trainee or act as a mediator in<br />

finding a place to stay.<br />

• Those hosting the work placement should arrange transportation that might be necessary to<br />

carry out the assignment.<br />

• The student is responsible for obtaining an adequate activity description.<br />

The practical term should be an opportunity for the student to bring his theoretical knowledge into<br />

practice. The curriculum describes the programme as one in which additional knowledge is obtained.<br />

The student, during his work placement, has to both practise his knowledge and be given the<br />

opportunity to increase his knowledge.<br />

The knowledge and the skills, which should be acquired during the practical term include:<br />

• Knowledge of the production technique of the organisation (where relevant).<br />

• Knowledge of the different (wood) products produced by the organisation (knowledge of the<br />

core business).<br />

• Knowledge of the organisation and the management of the company.<br />

• Knowledge of the logistic processes within the company.<br />

• Learning to work independently on an assignment.<br />

• Adaptive skills i.e. the ability to adapt to the organisation (professional attitude, jargon).<br />

• Communicational skills i.e. maintaining professional relations with colleagues and customers.<br />

To obtain the knowledge and skills as mentioned above, there are several requirements with respect to<br />

the content, which should be met during the work placement:<br />

• The trainee has to co-operate with the production process for a period no longer than 1 month.<br />

• The work placement has to comprise a period of teamwork, as well as a period during which the<br />

trainee has to work independently.<br />

• The trainee has to work with the logistical process within the organisation and, where relevant,<br />

with the logistical operating system.<br />

• The trainee has to work independently on an assignment featuring commercial, marketing<br />

and/or logistical aspects.<br />

• The trainee needs to be in contact with suppliers and customers to acquire knowledge of the<br />

technical terms used.<br />

• The trainee has to be given the opportunity to get to know the organisation of the company.<br />

• The trainee is given the opportunity to attend meetings and seminars.


8. Theme Policies and Business development (year 4, term 2)<br />

8.1 Certification and illegal harvesting<br />

Objectives<br />

After taking the courses of this theme the student should be able to:<br />

• understand the reasons for forest certification<br />

• understand the way of working of different certification systems<br />

• implement chain of custody certification within a wood trading company<br />

• use certified products as a marketing tool<br />

8.1.1 Forest and chain of custody certification systems<br />

In the last decades the certification of forest and forest products has become an important issue<br />

initiated by environmentalists and political groups. In this course different aspects of certification will<br />

be discussed.<br />

Topics of the course: Overview certification systems; the FSC certification system, the PEFC<br />

certification system, role of Dutch government in forest certification, FSC certification examples in<br />

practice.<br />

8.1.2 Certification and the market<br />

<strong>Timber</strong> trade and timber processing companies are not always enthusiastic about certified timber<br />

products. Some of them foresee only difficulties. This course will discuss the acceptance of certified<br />

products in the Dutch market.<br />

Topics of the course: acceptance of FSC- timber in the Dutch market (business to business),<br />

consumer behaviour.<br />

8.2 Business development and management skills<br />

8.2.1 Strategies of timber trade companies<br />

In this part of the programme attention will be paid to the strategies of timber trading companies. A<br />

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number of guest speakers from the work field will discuss with the students about different strategies<br />

that companies have developed to survive in the timber trading business.<br />

8.2.2 Module Management Game<br />

Learning objectives<br />

The learning objectives of Management Game have been derived from the final terms a graduate must<br />

meet and comprise the following broad areas:<br />

The graduate student:<br />

• Is able on the basis of insight and research of financial, logistic and quality data of the game<br />

company and on the basis of marketing objectives to form an opinion about the optimal<br />

application of marketing instruments.<br />

• Is able to present and defend this opinion verbally.


• Is able, to partly form an opinion on the basis of cost calculations,<br />

information analysis and investment analysis, about the selection<br />

of markets and market segments and is able to present and defend this opinion verbally.<br />

• Is able to participate in and manage the process of analyzing and opinion forming in a team<br />

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setting and is able to initiate, participate in and manage the process of decision making in a team<br />

setting.<br />

• In these processes the student will maintain a critical attitude with respect to him or her self in:<br />

- taking risks<br />

- working systematically and under time pressure<br />

- flexibility<br />

- sense of responsibility<br />

Learning objectives specified<br />

The management game aims to be an integration of marketing, finance and logistics in a simulated<br />

environment. The management game is a game of competition for an unknown branch of industry, in<br />

which five teams of three to four students, chosen randomly, will compete with each other. Every team<br />

represents the management team of a company. In the weekly management team meetings, students<br />

take decisions on the glorious or disastrous future existence of their company in competition with other<br />

teams in the industry.<br />

In order to support the process of decision-making various assignments will be made, in the course of<br />

the programme. Starting point is an English Players Manual, offering a good introduction to the game<br />

and at the same time giving you the opportunity to practise English business terms. The learning<br />

environment is the boardroom of the management team.<br />

10. Module description of thesis (year 4, term 3 and 4)<br />

The thesis should contain at least one of the following elements: matters pertaining business<br />

economics, marketing and/or markets, macro-economics or wood technology (how to produce).<br />

Not accepted are the following subjects or directions:<br />

- subjects within the field of wood biology and wood science<br />

- subjects within the field of machine engineering<br />

- subjects within the field of forestry and nature conservation only<br />

Basic rule:<br />

All subjects of the thesis are related to an existing wood industry, processor or trader in wood<br />

products.<br />

Overview of Categories:<br />

Category 1: wood<br />

processing<br />

Category 2: wood grading<br />

and product quality<br />

- yield calculations of all types of wood-processing and<br />

wood industry chain.<br />

- cost calculations of different processing stages<br />

- standards and classification of raw materials<br />

- standards and classification of end products


Category 3: logistics and<br />

transport<br />

Category 4: wood policy and<br />

certification<br />

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- use of less known species<br />

- stock management<br />

- internal logistics<br />

- problems concerning deliveries<br />

- wood policy on national level related to timber trade<br />

- certification related to timber trade<br />

- timber trade and nature conservation<br />

- timber supply

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