The purpose of this theses is to improve the profitability of the logistics firm by comparing two different logistic processes. Logistic processes that the assigning firm is considering have the same mix of actions which are carried out differently. Assigning firm is currently using the other logistic process and has basic understanding of the profits and costs that affect the process. The profits and costs of the other process for the firm are so far unknown.

Assigning firm transports lumber from forests, using trucks, to the factories and sawmills in Northern Finland. The payments for the firm are based on the lumber transported which emphasizes the importance of the effective logistic process. The processes presented in the thesis are later transformed into a ten years projects which have limited profits and costs that can be measured.

The background of the thesis consists of business and logistic process, supply chain and supply chain management and preferred project estimation theories. The amount of transported lumber, profits generated and the costs of the processes are calculated for a ten years period and scored based on the criteria the assigning firm has set up.

The outcome of this thesis is a report that contains comparison of the two different logistic process for the assigning firm. The firm chooses one logistic process which will be used for transportation. The author will take a part in measuring the outcome of the chosen process.