Diversify Risks in the Global Timber Market
By Sharanya

The Exporter's Take on How to Diversify Risks in the Global Timber Market

November 4,2022

It is common knowledge that many sawmills sell globally. Export sales to distant markets often use middlemen who act as a filter for information on how the market is performing. This means that exporters often have incomplete knowledge of the market, and that can put them at a disadvantage. To understand the risks associated with the industry & mitigate them to the best effect, one must first understand the situation.

Buyers often send inquiries that lack complete information. This results in mills ignoring and missing the tender. Given the current situation of volatile markets, there are two things to keep in mind for flexibility & diversification in the global timber trade:

  • Working directly with leading industrial customers and distributors around the world and increasing your margins by 2-5% on average.
  • Supporting market decisions based on quantitative data directly from the market.

The most crucial risks faced by exporters include non-transparent markets, endless paper-based processes, and filtered market access & sales processes. By implementing a supply chain automation platform like Timber Exchange, these risks can be mitigated to a large extent.

How Can Timber Exchange Help Exporters?

Timber Exchange is a high-trust trade community that offers four core features such as advanced supply chain tools, a smart B2B marketplace, an updated market data hub, and trade finance & compliance. By making the most of these features, exporters can enhance their end-to-end supply chain in the following ways:

  • Track global market performance & identify opportunities using data
  • Tendering timber directly from importers or sawmills globally
  • Automate manual & paper-based processes from the inquiry to the delivery of the cargo
  • Outsource trade finance tasks such as cargo inspection & L/C management and remittance to experts

The exporter’s side can make well-thought trading decisions based on the recent data from global buyers, making around 5,500,000 Euros per year and getting up to 183x Return on Investment. To know more about Timber Exchange & understand how you can mitigate the risks, book a demo with the team today.