Mappost’s innovative timber transportation solution earns “Zelta čiekurs” award

On December 7, 2023 Mappost received the prestigious "Zelta čiekurs" ("Golden pinecone") award in the Innovative Entrepreneurship category. This recognition is attributed to our innovative timber transportation logistics and optimization solver, developed in collaboration with Latvijas valsts meži (LVM).

The award ceremony, hosted at the Latvian University of Life Sciences and Technologies, was attended by the President of Latvia, and representatives from the forestry sector.

"Zelta čiekurs" Award

The "Zelta čiekurs" award stands as the highest honor in the forest industry, recognizing the exceptional contributions of professionals over the past 20 years.

Awarded in five categories, including "Lifetime Achievement," "Innovative Entrepreneurship," "Scientific Contribution to Industry Development," "Contribution to Industry Development," and "Sustainable Management," this award acknowledges the pivotal role of the forestry sector in Latvia's national economy.

Forestry Sector in Latvia

The forestry sector in Latvia provides stability through employment, tax contributions, significant contributions to the national GDP, exports, and renewable resource extraction. In 2022, the added value of the forestry sector constituted 7.0% of the country's GDP, employing 41 thousand individuals.

According to Agriculture Minister Armands Krauze, the "Zelta čiekurs" is the highest recognition for achievements in the forestry sector, honoring professionals who uphold traditions while pioneering sustainability and future economic endeavors. The award reflects not only the laureates' accomplishments but also the pride in Latvia, a nation blessed with rich forests that require responsible and sustainable management for the benefit of all.

Timber Transportation Logistics Optimization for Efficient Delivery Planning

In response to the complex logistical challenges of delivering timber products to over 200 clients from several thousands of timberyard locations across the whole country, Mappost's innovative solution optimizes the planning of 700–800 deliveries daily.

This process involves meticulous coordination of available stocks, resources, customer commitments, road accessibility, and business-related conditions. In addition to dozens of industry-specific constraints, the system takes into account the carrying capacity of each road segment and forecasted weather conditions at the time of delivery when planning. As a result, the deliveries are not only efficient but also responsive to the dynamic conditions of the forestry sector.

Additionally, the Mappost solution takes into account company-specific details, for instance, acknowledging the necessity for drivers to commence and conclude their shifts within a specified distance from their individual homes.

Addressing Real and Intangible Costs

The Mappost solution goes beyond traditional logistics by addressing both real and intangible costs in the timber transportation process. It employs a sophisticated evaluation system, considering tangible costs like hourly rates, fuel prices, and consumption (distance costs), alongside more abstract expenses such as engagement costs for an additional vehicle or penalties for violating time window or road weight limitations. The solution incorporates special mathematical modules that assign a value to each timber batch in the yard based on assortment type and days since harvesting.

By implementing a system of soft and hard violations, scenarios are compared, enabling the automatic optimization and selection of the most optimal logistics scenario. This advanced approach allows the system to mimic the everyday decisions of logistics specialists to weigh factors like the financial sacrifice required to deliver a specific 7-day old timber batch today, adding a nuanced layer to the decision-making process.

Cost Efficiency and Environmental Impact

Beyond the immediate benefits of optimized delivery planning, Mappost's solution contributes to cost savings and environmental sustainability. By automating transportation task assignments and route planning, the system significantly reduces the company's resource expenditure and, consequently, the overall cost of timber product deliveries. Moreover, the innovative solution actively supports a reduction in CO2 emissions, aligning with environmental considerations in timber transportation processes and overall company ESG goals.

Integration into Existing Platforms for Enhanced Functionality

While functioning as a standalone development project, Mappost's logistic solver is integrated into LVM GEO platform as well as logistics and supply chain information systems, enhancing and complementing its existing functionality. These integrations provide additional added value and support for the logistics and supply process.

"Thanks to LVM's high standards, the project became an example of ESG, as environmental, social and good governance factors were taken into account. The created optimization solution for the needs of LVM is unique in that neither in European forest management nor elsewhere in the world is there an equivalent solution that would ensure the optimization of the specific conditions and data sets of the forest sector logistics"

Martins Vimba, CEO of Mappost

Gratitude for Recognition and Our Team

We extend a sincere thank you to the Ministry of Agriculture of Latvia for recognizing Mappost's contribution to this vital industry with the "Zelta čiekurs" award.

This accomplishment is a reflection of the dedication and expertise of our outstanding team. Their relentless pursuit of innovation has enabled us to make significant contributions to the forestry industry in Latvia. We are very proud to be part of a community that values forward-thinking solutions and sustainability!

Last but not least, we extend our deepest gratitude to LVM for entrusting us with the challenge of delving into the intricate specifics of the forestry industry and solving this immense multi-constraint optimization problem. Being selected as a partner by an industry leader like LVM aligns with our expertise in tackling substantial optimization challenges.

If you have a complex problem awaiting a solution, don't hesitate to reach out; solving large multi-constraint problems is our specialty!