crippling effect of survey data
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Slide 1
The crippling effect of survey data Paper Recycling ConferenceChicago, Illinois2012
2016, Forest2Market, Inc.
Survey-Based Market Information: Negatively Affects Performance2
Survey results lack credibilityThe real price industry paysSusceptible to manipulationStrains trading relationships
2016, Forest2Market, Inc.
Survey-Based Market Information: Negatively Affects Performance3
Survey results lack credibilityThe real price industry paysDo not reflect your experienceCannot support decisions on any level
2016, Forest2Market, Inc.
Survey-Based Market Information: Negatively Affects Performance4
Survey results lack credibilityThe real price industry paysAmplify the effects of marginal tradesCreates artificial price volatility
2016, Forest2Market, Inc.
Survey-Based Market Information: Negatively Affects Performance5
Survey results lack credibilityThe real price industry paysNot codified; no standardsCreates artificial price volatilityWreaks havoc with financials
2016, Forest2Market, Inc.
Survey-Based Market Information: Negatively Affects Performance6
Survey results lack credibilityThe real price industry paysVariable & unknowable margin of errorForget about forecasting
2016, Forest2Market, Inc.
Survey-Based Market Information: Negatively Affects Performance7
Survey results lack credibilityThe real price industry paysReflect markets sentiment and forecastErodes decision-makers confidence
2016, Forest2Market, Inc.
What do we know about this business?8
2016, Forest2Market, Inc.
What do we know about this business?9
2016, Forest2Market, Inc.
What do we know about this business?10
2016, Forest2Market, Inc.
Does This Describe Your Business?Fragmented supply chainThousands of participantsHistory of antagonism between buyers and sellersNational and international influencesCommodity business that is affected by local marketsHigh distrust of current pricing services
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2016, Forest2Market, Inc.
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A History of Delivering Value12
2016, Forest2Market, Inc.
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A History of Delivering Value13
2001: Stumpage Price Service
2016, Forest2Market, Inc.
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A History of Delivering Value14
2001: Stumpage Price Service
2006: Forest2Mill: Raw Material Benchmarks US South
2016, Forest2Market, Inc.
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A History of Delivering Value15
2001: Stumpage Price Service
2006: Forest2Mill: Raw Material Benchmarks US South
2007: Forest2Mill: Raw Material Benchmarks Pacific Northwest
2016, Forest2Market, Inc.
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A History of Delivering Value16
2001: Stumpage Price Service
2006: Forest2Mill: Raw Material Benchmarks US South
2007: Forest2Mill: Raw Material Benchmarks Pacific Northwest
2008: Forest2Fuel: Delivered Price Benchmarks Wood Feedstock Price Index
2016, Forest2Market, Inc.
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A History of Delivering Value17
2001: Stumpage Price Service
2006: Forest2Mill: Raw Material Benchmarks US South
2007: Forest2Mill: Raw Material Benchmarks Pacific Northwest
2008: Forest2Fuel: Delivered Price Benchmarks Wood Feedstock Price Index
2009: Mill2Market: Lumber Market Analysis Service Lumber Market Quarterly Benchmark
2016, Forest2Market, Inc.
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A History of Delivering Value18
2001: Stumpage Price Service
2006: Forest2Mill: Raw Material Benchmarks US South
2007: Forest2Mill: Raw Material Benchmarks Pacific Northwest
2008: Forest2Fuel: Delivered Price Benchmarks Wood Feedstock Price Index
2009: Mill2Market: Lumber Market Analysis Service Lumber Market Quarterly Benchmark
2011: Market2Mill:Recovered Fiber Service
2016, Forest2Market, Inc.
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How Does it Work?Transaction data onlyNo survey, no callingEvery customer transaction is reportedStandardizedCollection and reporting (apples to apples) AuditsParticipation required to receive dataData comes directly from customers (buyers and sellers)Deep industry participationTarget 90%Meet DOJ Anti-trust requirements
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2016, Forest2Market, Inc.
Data: Unsurpassed Detail PriceFreightOriginType of sellerType of buyerMode of transportMiles
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2016, Forest2Market, Inc.
Recovered Fiber Monthly Reports21
OCC and DLK; MP and SOP next quarter
2016, Forest2Market, Inc.
Recovered Fiber Monthly Reports22
Contract and spot separated.Simple reports based on a 42,423 verified transactions.
2016, Forest2Market, Inc.
Recovered Fiber Quarterly Benchmark23
2016, Forest2Market, Inc.
Winners and losers?24
2016, Forest2Market, Inc.
Mill Identifies High Cost Winner25
2016, Forest2Market, Inc.
Broker Identifies Low Realizations Winner26
2016, Forest2Market, Inc.
Differences Between Waste Streams Winner27
2016, Forest2Market, Inc.
How Do Your Freight Costs Stack Up?
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2016, Forest2Market, Inc.
We handle the data, while you handle your business.29
2016, Forest2Market, Inc.
DataData is submitted by all participants: Monthly data submission of prior months transactionsElectronically submitted in any format (xls, csv, xml, etc.)Transaction level data from accounting or fiber systemsInbound purchasing/receiving transactions for mill participantsOutbound FTL scale transactions for supplier participantsForest2Market analysts quality check the data:Validation of receiptFitness tests: volume norms, price norms, etc.
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2016, Forest2Market, Inc.
DataAll submitted data subject to periodic audits.Data is secure.Data is confidential; external/internal firewalls periodically audited to ensure only authorized persons can access.All reports adhere to anti-trust guidelines.
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2016, Forest2Market, Inc.
Contact32Pete StewartPresident & [email protected]
Forest2Market15720 Brixham Hill AveSuite 550Charlotte, NC 28277
2016, Forest2Market, Inc.