The Swiss forest economy has been trying for many years to improve logistics in the chain of the added value of wood. This work addresses necessary reforms to the system within the context of new institutional economics. The basic concept is explained, transaction costs of markets and hierarchies are presented systematically and the forms of governance structures outlined. The example of Swiss forest economy shows that fruitful points of departure can be developed aimed at reforming the vertical and horizontal relations between enterprises, as well as internal questions of governance. A pre-condition to achieve more efficient governance in forest economy is the reduction of restrictive institutions, whether formal or informal.