Wood, an essential natural resource in human civilization, remains widely used despite advances in technology and material substitution. The surge in greenhouse gas emissions and environmental concerns accentuates the need for optimizing wood utilization. Material flow analysis is a powerful tool for tracking material flows and stocks, aiding resource management and environmental decision-making. However, the full extent of its methodological dimensions, particularly within the context of the wood supply chain, remains relatively unexplored. In this study, we delve into the existing literature on wood flow analysis, discussing its primary objectives, materials involved, temporal and spatial scales, data sources, units, and conversion factors. Additionally, data uncertainty, data reconciliation and crucial assumptions in material flow analysis are highlighted in this paper. Key findings reveal the significance of wood cascading and substitution effects by replacing non-wood materials, where they can reduce greenhouse gas emissions more than the natural carbon sink of forests and wood products. The immediate impact of short-term wood cascading might not be as robust as the substitution effect, with energy substitution showcasing better results than material substitution. However, it's crucial to note that these conclusions could experience significant reversal from a long-term and global perspective. Strategies for improving wood efficiency involve maximizing material use, advancing construction technologies, extending product lifespans, promoting cascade use, and optimizing energy recovery processes. The study underscores the need for standardized approaches in wood flow analysis and emphasizes the potential of wood efficiency strategies in addressing environmental challenges.