The Crippling Effect of Survey Data - Paper Recycling Conference - 10-15-12

Survey-Based Market Information: Negatively Affects PerformanceSurvey results lack credibilitySusceptible to manipulationThe real price industry paysStrains trading relationships ©2012 Forest2Market®, Inc. 2

Survey-Based Market Information: Negatively Affects PerformanceSurvey results lack credibilityDo not reflect your experienceThe real price industry paysCannot support decisions on any level ©2012 Forest2Market®, Inc. 3

Survey-Based Market Information: Negatively Affects PerformanceSurvey results lack credibilityAmplify the effects of marginal tradesThe real price industry paysCreates artificial price volatility ©2012 Forest2Market®, Inc. 4

Survey-Based Market Information: Negatively Affects PerformanceSurvey results lack credibilityNot codified; no standardsThe real price industry paysCreates artificial price volatility Wreaks havoc with financials ©2012 Forest2Market®, Inc. 5

Survey-Based Market Information: Negatively Affects PerformanceSurvey results lack credibilityVariable & unknowable margin of errorThe real price industry paysForget about forecasting ©2012 Forest2Market®, Inc. 6

Survey-Based Market Information: Negatively Affects PerformanceSurvey results lack credibilityReflect market’s sentiment and forecastThe real price industry paysErodes decision-maker’s confidence ©2012 Forest2Market®, Inc. 7

Does This Describe Your Business?• Fragmented supply chain• Thousands of participants• History of antagonism between buyers and sellers• National and international influences• Commodity business that is affected by local markets• High distrust of current pricing services 11

A History of Delivering Value 12

A History of Delivering Value 2001: Stumpage Price Service 13

A History of Delivering Value 2001: Stumpage Price Service 2006: Forest2Mill: Raw Material Benchmarks – US South 14

A History of Delivering Value 2001: Stumpage Price Service 2006: Forest2Mill: Raw Material Benchmarks – US South 2007: Forest2Mill: Raw Material Benchmarks – Pacific Northwest 15

A History of Delivering Value 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 16

A History of Delivering Value 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 17

A History of Delivering Value 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 18

How Does Market2Mill Work?• Transaction data only  No survey, no calling  Every customer transaction is reported• Standardized  Collection and reporting (apples to apples)  Audits• Participation required to receive data  Data comes directly from customers (buyers and sellers)• Deep industry participation  Target 90%• Meet DOJ Anti-trust requirements ©2012 Forest2Market®, Inc. 19

Mill Identifies High Cost Winner OCC - Net FOB Sellers Dock July 2012 - Chicago$140$120$100 $80 $60 $40 $20 $- Avg Mill 1 Mill 2 Mill 3 Mill 4 Mill 5 Mill 6 Customer Mill 8 ©2012 Forest2Market®, Inc. 25

Data• Data is submitted by all participants:  Monthly data submission of prior month’s transactions  Electronically submitted in any format (xls, csv, xml, etc.)  Transaction level data from accounting or fiber systems – Inbound purchasing/receiving transactions for mill participants – Outbound FTL scale transactions for supplier participants• Forest2Market analysts quality check the data:  Validation of receipt  Fitness tests: volume norms, price norms, etc. ©2012 Forest2Market®, Inc. 30

Data• All 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. ©2012 Forest2Market®, Inc. 31

ContactPete StewartFounder, President and CEOOffice: 980-233-4011pete.stewart@forest2market.com Scan with your mobile phone for contact informationForest2Market®, Inc.14045 Ballantyne Corporate Pl., Ste. 150Charlotte, NC 28277Website: www.forest2market.comBlog: http://blog.forest2market.com

The Crippling Effect of Survey Data - Paper Recycling Conference - 10-15-12

by Forest2Market, Inc. on Oct 17, 2012

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The Crippling Effect of Survey Data - Paper Recycling Conference - 10-15-12 Presentation Transcript