The Role of Supply Chain Analysis in Market-Driven Product Portfolio Selection for the Forest Biorefinery

The implementation of the forest biorefinery in retrofit to an existing forestry company requires a strategic shift in the core business from a commodity-driven manufacturing-centric culture, to a margins-driven supply chain culture. In order to diversify the set of traditional forest products to include biorefinery products it is critical to define the associated market and competitive strategies as well as new business models. The penetration of existing mature value chains by replacement and/or substitution biorefinery products requires that supply chain strategies be implemented that create and retain value over the longer term, and secure a unique competitive position. As part of the new product portfolio definition, key supply chain criteria must be identified and considered in the value chain assessment. The role of the supply chain in defining the product portfolio definition and in mitigating risks against price volatility is examined in this paper.