Problems of big data analytics in the timber trade industry

As the timber trading industry continues to evolve, the importance of data analytics is becoming increasingly clear. Big data analytics has become a valuable tool for companies to optimise their operations, make informed decisions, and stay competitive in a rapidly changing marketplace. However, the implementation of big data analytics in the forest trade industry has been problematic and companies face difficulties in collecting, analysing and using relevant data. In this article, we look at some of the challenges of big data analytics in the timber industry and why companies lack local and global market statistics.

One of the biggest problems faced by timber trading companies is the lack of standardisation of data collection. The data is generated at various stages of the timber supply chain, from the forest to the final consumer. However, this data is often collected and stored in different formats, making it difficult to aggregate and analyse it. Lack of standardisation prevents companies from having a complete understanding of their operations and the market, leading to inefficiencies and missed opportunities.

Another problem faced by companies is the lack of data on local and global markets. Unlike other industries, the timber trade industry is highly dependent on the environment and natural resources. This makes it difficult to predict market trends and it is often difficult for companies to get accurate supply and demand data. For example, changes in weather conditions, regulations or trade policy can have a significant impact on the market, making it difficult for companies to adjust their activities accordingly.

In addition, data privacy and security are additional concerns for companies implementing big data analytics in the forestry industry. The industry operates internationally and companies must comply with various data privacy regulations. The sensitive nature of data such as location, wood species and prices makes it necessary to have strong data management systems in place to ensure data confidentiality.

One of the main reasons why companies lack local and global market statistics is the lack of investment in data analytics. Many timber trading companies are small or medium enterprises and may not have the resources to invest in sophisticated data analytics systems. In addition, some managers may not see the value of investing in data analytics or lack the experience to effectively implement such systems.

Another reason companies lack local and global market statistics is the fragmented nature of the wood trading industry. The industry is made up of many small and medium-sized companies, making it difficult to get complete market data. In addition, the timber trading industry operates on a global scale and companies must obtain data from different countries and regions, each with its own unique market characteristics.

In conclusion, the implementation of big data analytics in the forest trade industry has been problematic and companies face numerous challenges in collecting, analysing and using relevant data. These challenges stem from the lack of standardisation of data collection, the difficulty of obtaining accurate local and global market data, and the fragmented nature of the industry. Companies must invest in data analytics systems and collaborate with other global companies and domestic organizations to overcome these challenges and harness the power of data analytics to remain competitive in the timber trade.

Alex Wysocki. Forest tech geek and founder of Linkiwood.