How I shook up the timber market: My journey with VonWood

In the early 2000s, I witnessed firsthand how outdated methods in traditional industries create barriers. The timber industry is no different, relying heavily on manual processes and complex trade routes. This often results in buyers facing challenges in accessing fair prices, transparent transactions, and efficient supply chains.

A conversation with a friend who had been in the timber trade all his life highlighted these issues. His frustrations were evident as he described the systemic inefficiencies and opaque pricing. This planted the seed of an idea that would later become VonWood. The COVID-19 pandemic further emphasised these problems, with timber prices skyrocketing and businesses locked into high-rate contracts. This served as inspiration for us, where we saw the potential of digital transformation for the timber trade, similar to how digital platforms revolutionised the purchase of airline tickets, rental cars, and hotel bookings.

Despite being traditional, the timber industry saw significant innovations in the 20th century. McKinsey reports key advancements like switching from horse-drawn transportation to motorised trucks, doubling productivity between the mid-1950s and mid-1960s. The introduction of chainsaws and motorised fellers further doubled productivity over the next two decades. Mechanisation from the 1980s onwards saw automation, prompting a 300 percent increase in productivity per worker in leading countries like Sweden. However, big innovations faded in the early 2000s, leaving the timber industry lagging in digitisation.

Simultaneously, timber demand has increased, driven by construction growth and a shift toward sustainable practices. According to Global Wood Markets UK, timber demand is expected to grow by 78 percent by 2025, underscoring the need for efficient supply chains and fair market access.

Launching VonWood was challenging. Our early platform needed significant improvements, which was a tough but valuable learning experience. The conservative nature of the timber and construction industries meant introducing a digital marketplace was met with skepticism. Initially, adoption was slow, but persistence paid off. As we demonstrated the value and efficiency of our platform, engagement increased. Today, VonWood active members are in the hundreds and growing, and our revenue has grown by over 300 percent in the past 12 months. This underscores the industry's growing recognition of the need for innovation.

Digital platforms address core inefficiencies in the timber industry. Our platform enables buyers to submit requests for timber, which are anonymously processed and presented to multiple suppliers, ensuring market-based pricing. Suppliers, ranging from sawmills to local middlemen, can place offers on these requests. Once an offer is accepted, VonWood facilitates the transaction, provides financing options (VonWood Pay), and offers logistic support. This comprehensive approach minimises errors and streamlines the process for both buyers and suppliers.

Leveraging technology, smaller buyers gain access to the same market opportunities as larger players. Real-time data on timber availability and pricing allow informed purchasing decisions, levelling the playing field. Digitising the supply chain minimises errors and miscommunications, benefiting both buyers and suppliers.

While most of our buyers are in the Netherlands, we have a significant presence in the Nordics, Germany, and other European countries. Recently, we expanded to France and the UK, where we have seen a surge in interest. This broad geographical footprint highlights the universal need for a more efficient and transparent timber marketplace. The increasing number of active users on our platform underscores its growing popularity and trust within a once-conservative industry.

We are not alone in this market. While identifying key rivals is challenging due to the unique nature of our platform, there are other tech companies offering competing services. However, our approach of combining a digital marketplace with comprehensive financial and logistical support sets us apart, providing a holistic solution addressing multiple pain points in the timber trade.

By creating a digital marketplace, we provide timber buyers with more global market options. And as timber demand continues to rise, such innovations are crucial. Our efforts to digitise the timber trade are not only levelling the playing field for buyers but also driving the industry toward a more efficient and transparent future.

We believe that digitising the timber industry will have profound implications. It will enable buyers to source timber more efficiently and at fair prices, while suppliers enjoy streamlined operations and a hugely expanded market to sell to. A digital platform reduces downtime and improves project timelines by ensuring quicker, hassle-free transactions. Value-added services, including data analysis and logistics, offer unique capabilities, particularly for smaller buyers who were previously disadvantaged.

As timber demand continues to rise, such innovations are essential. By levelling the playing field, we aim to drive the timber industry toward a more efficient and transparent future.