Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia

In response to environmental concerns, over the past two decades, many environmental organisations, government entities, wood product manufacturers and other companies in wood products supply chains have developed standards to encourage consumers to purchase wood originating from certified sustainab...

Full description

Bibliographic Details
Main Authors: A. G., Nor Suryani, Othman, Mohd Shahwahid, Puasa, Ahmad Fauzi, Radam, Alias, R. P., Vlosky
Format: Article
Language:English
Published: Forest Research Institute Malaysia 2011
Online Access:http://psasir.upm.edu.my/id/eprint/22823/
http://psasir.upm.edu.my/id/eprint/22823/1/Assessment%20of%20chain.pdf
_version_ 1848844590615887872
author A. G., Nor Suryani
Othman, Mohd Shahwahid
Puasa, Ahmad Fauzi
Radam, Alias
R. P., Vlosky
author_facet A. G., Nor Suryani
Othman, Mohd Shahwahid
Puasa, Ahmad Fauzi
Radam, Alias
R. P., Vlosky
author_sort A. G., Nor Suryani
building UPM Institutional Repository
collection Online Access
description In response to environmental concerns, over the past two decades, many environmental organisations, government entities, wood product manufacturers and other companies in wood products supply chains have developed standards to encourage consumers to purchase wood originating from certified sustainable forests. This paper focuses on the chain-of-custody (CoC) component of certification. A study involving sawnwood manufacturers in Malaysia was conducted to determine an accurate cost of obtaining a Malaysian Timber Certification Council (MTCC) CoC certificate. There are three types of costs to obtain a MTCC–CoC certificate: (1) cost to meet CoC standard or requirement (an indirect cost), (2) auditing cost (a direct cost) and (3) surveillance visit cost (a direct cost). Results indicated that the cost to meet CoC standard is the major component involving 96% of the total cost of certification, whereas the auditing and surveillance visit each only involved 2% of the total certification cost. None of the three CoC costs were statistically correlated with company size (as measured by annual sales) but there was a statistically significant relationship between cost of surveillance visit and company size when measured by annual production.
first_indexed 2025-11-15T08:33:21Z
format Article
id upm-22823
institution Universiti Putra Malaysia
institution_category Local University
language English
last_indexed 2025-11-15T08:33:21Z
publishDate 2011
publisher Forest Research Institute Malaysia
recordtype eprints
repository_type Digital Repository
spelling upm-228232015-10-06T07:10:43Z http://psasir.upm.edu.my/id/eprint/22823/ Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia A. G., Nor Suryani Othman, Mohd Shahwahid Puasa, Ahmad Fauzi Radam, Alias R. P., Vlosky In response to environmental concerns, over the past two decades, many environmental organisations, government entities, wood product manufacturers and other companies in wood products supply chains have developed standards to encourage consumers to purchase wood originating from certified sustainable forests. This paper focuses on the chain-of-custody (CoC) component of certification. A study involving sawnwood manufacturers in Malaysia was conducted to determine an accurate cost of obtaining a Malaysian Timber Certification Council (MTCC) CoC certificate. There are three types of costs to obtain a MTCC–CoC certificate: (1) cost to meet CoC standard or requirement (an indirect cost), (2) auditing cost (a direct cost) and (3) surveillance visit cost (a direct cost). Results indicated that the cost to meet CoC standard is the major component involving 96% of the total cost of certification, whereas the auditing and surveillance visit each only involved 2% of the total certification cost. None of the three CoC costs were statistically correlated with company size (as measured by annual sales) but there was a statistically significant relationship between cost of surveillance visit and company size when measured by annual production. Forest Research Institute Malaysia 2011 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/22823/1/Assessment%20of%20chain.pdf A. G., Nor Suryani and Othman, Mohd Shahwahid and Puasa, Ahmad Fauzi and Radam, Alias and R. P., Vlosky (2011) Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia. Journal of Tropical Forest Science, 23 (2). pp. 159-165. ISSN 0128-1283
spellingShingle A. G., Nor Suryani
Othman, Mohd Shahwahid
Puasa, Ahmad Fauzi
Radam, Alias
R. P., Vlosky
Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia
title Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia
title_full Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia
title_fullStr Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia
title_full_unstemmed Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia
title_short Assessment of chain-of-custody certification costs for sawnwood manufacturers in Peninsular Malaysia
title_sort assessment of chain-of-custody certification costs for sawnwood manufacturers in peninsular malaysia
url http://psasir.upm.edu.my/id/eprint/22823/
http://psasir.upm.edu.my/id/eprint/22823/1/Assessment%20of%20chain.pdf