MagicLogic Cube-IQ Plans Loads Faster, Reduces Damages for Arauco
Renowned forest products company Arauco is able to plan loads more quickly with MagicLogic’s Cube-IQ software. Additionally, the company sees claims for damaged loads decrease significantly.
Arauco is a global company with more than 50 years of experience manufacturing forest products. These include premium plywood, lumber and wood pulp, millwork, and a comprehensive range of composite panels that include HDF, MDF, and particleboard.
The company has production facilities in North and South America, and ships to more than 3,500 locations in North America.
Arauco is renowned for its advanced and automated manufacturing systems, and the company has a strong focus on innovation and sustainability within the forestry industry, using renewable resources.
The Challenge
Before, Arauco was planning loads manually—a time-consuming process. While planning loads, it was necessary to ensure that products were balanced optimally. Excess dunnage was another challenge, especially for a company concerned about sustainability.
The Solution
MagicLogic’s Cube-IQ software enables even complex loads to be planned accurately, following fully customizable loading rules, using minimal dunnage to ensure products are protected and more likely to arrive in perfect condition. Arauco opted for Cube-IQ Web, its hosted, subscription service that allows users to access Cube-IQ from their phone, tablet, or laptop wherever they are located. Cube-IQ Web provides all the same functions as MagicLogic’s desktop version, and is ideal for today’s more flexible working environment.
The Results
Since load planners began using Cube-IQ software at Arauco’s Mid-western mill, loads are planned on average 25-50% more quickly than planning them manually. Additionally, claims for damaged loads have decreased significantly.
When asked about their experience using Cube-IQ, Arauco replied: “Since we have started to use this program, our claims that have been processed in the past have significantly decreased this time frame because of the more balanced loads with minimal dunnage having to be built into the containers. With the success we’ve had with this program we are now moving to require all loads that are shipping (railcar in specific) should be diagrammed and approved before sending it to be loaded on the docks.”
Arauco kindly provided a table showing the decrease in claims, summarizing the total claims for their Midwestern mill.
| Cost | 2022 | 2023 |
| <$500 | 9 | 1 |
| >$10,000 | 3 | 1 |
| >$500 – <$10,000 | 13 | 1 |
| Grand Total | 25 | 3 |
Arauco pointed out: “These are only the claims for transportation issues coming out of the Midwestern mill and since we have started to run more loads through this program we are having much better results in 2023 vs 2022. Adding on to the results from this year, YTD, total claims for all mills are 7 (this includes the 3 from the beginning of this year). The total average of the claims now are less than $1,200, which is down from the previous year.”
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