G-P Shedding Millwork Plants, DCs

Vowing "we must return to profitability," Georgia-Pacific Corp. has reorganized leadership of its building products distribution division and will sell most of its millwork fabrication facilities and western warehouses.

G-P promises additional cost-cutting moves this year throughout the division.

The announcement came days after executive v.p.-wood products Ronald L. Paul took over the distribution division as executive v.p.-wood products and distribution. He succeeds George MacConnell, who resigned as senior v.p.-distribution and millwork.

Regional responsibilities also were reassigned. Wayne Amy, v.p.-commodity wood products, will oversee the Southeast region, commodity wood products, procurement and logistics. Joe Armetta, v.p.-sales, will oversee the Northeast and Midwest regions, and Alan Gay, v.p.-millwork and national accounts, the MidAtlantic region, national accounts and marketing & advertising.

David V. Berger, v.p.-sales, has resigned.

Weeks earlier, G-P revealed it would severely cut back in products

Canadian Giant Restructures

MacMillan Bloedel has begun a major restructuring that includes closing, selling and spinning off operations and reducing its workforce of 13,000 by 2,700.

While MB's solid wood division will remain a core business of the company, it will concentrate on higher grade products and slash employmentby 30Vo.

MB will sell its MDF plants in Pembroke, Ontario, and Clarion, Pa., and is considering selling some of its OSB operations in Canada.

It will close a wood products and paper research and technology facility in Burnaby and divest its groundwood paper business, likely through a spinoff. Is profitable packaging business, based in Montgomery, Al., also may be separated to maximize shareholder value.

Triad Buys Gemini Systems

Triad Systems, Livermore, Ca., has acquired the assets of Gemini Systems Software, San Antonio, Tx., expanding its position as an industry and regions where it was least competitive. leader of information management systems for all tiers of the LBM industry.

The plants, which assemble doors, windows and other specialty moulding products, and warehouses will be closed if no buyers are found. They employ about 1,500 or 3OVo of the division's 5, 100 employees.

G-P will continue selling millwork products and retain a small moulding facility in Baton Rouge, La., and a millwork fabrication plant in Minneapolis, Mn., but divest all others-in Arlington, Tx.; Boston, Ma.; Chicago, Il.; Cincinnati, Oh.; Frederick, Md.; Lawrenceville, Ga.; Butner (Raleigh), N.C., and Yulee (Jacksonville), Fl.

Companion warehouses in Chicago, Frederick, Lawrenceville, Raleigh and Yulee will remain open.

In the West, G-P will close 13 of its 16 DCs, serving former markets primarily on a mill direct basis.

Analysts have described G-P's distribution business as "a black hole" and a drag on its earnings. In 1996, while the company as a whole earned $914 million, the distribution division lost about $90 million.

The majority of Gemini's customers are larger, multi-location businesses. More than half of the 700+ locations it serves are operated by four chains: 163-unit Lanoga Corp., Redmond, Wa.; 107-unit McCoy's Building Supply Centers, San Marcos, Tx.; 48-unit Pelican Cos., Conway, S.C., and 48-unit Foxworth-Galbraith Lumber, Dallas, Tx.

Triad now serves more than 5.800 customers with approximately 7,700 automated point-of-sale locations.

All Gemini employees will remain in San Antonio. Eighteen-year Gemini employee Marilyn Whitman has been appointed site manager for the Gemini subsidiary.

L-P Settles OSB Lawsuit

Louisiana-Pacific has agreed to a Z0-year warranty for its Inner-Seal OSB to settle a class action lawsuit alleging the products were defective.

L-P offered to warrant the performance of its OSB sheathing products back to 1984 and ahead 20 years to the year 2017.

The company also agreed to pay the full cost of replacing any of its OSB sheathing that sustains damage due to a manufacturing defect during the 20-year warranty.

NFL Player Plays Santa

Christmas almost didn't come at Lowe's in Athens, Ga., after a thief made off with barrels full of toys donated by employees and customers.

With just weeks until Christmas, workers were unable to replace all the toys. Fortunately, Scott Adams, a football lineman for the Atlanta Falcons and previously the University of Georgia, was due to sign autographs in the store to promote the Toys for Tots program.

When he heard about the heist, he left and returned a short time later with four shopping carts full of toys for needy children.

"He had a whole truckload of stuff," said co-mgr. Kenny Ober, estimating that the toys cost between $500 and $600.

Synthetic Stucco Fights Back

Hammered by homeowner lawsuits and bad publicity, the Exterior Insulation and Finish System industry is fighting back.

The industry recently won two court battles against owners of waterdamaged homes. Manufacturers admitted there have been some problems with water intrusion in homes with EIFS systems, but traced the problems to poor quality, even noncode compliant-windows and improper flashings and sealings.

Responding to the concerns, several manufacturers have begun designing new systems with specialized drainage channels to allow any moisture to escape to the outside. The industry is also continuing to inform builders on proper installation techniques.

To exploit the perceived problems with EIFS, the competing Southwest Brick Institute recently launched a tv ad campaign attacking EIFS products. EIFS producers responded with their own series of print ads ("Bricks Don't Stand

Up," "Brick Shouldn't Make Cracks").

According to the industry EIFS has grown to over lTVo of the commercial market and more than l0%o of the residential sector.

la'TUSTOMER SERVICE is one key

\-rto any company's success. Sadly. many of us believe our service is good because we rarely receive any complaints, or because our customers are not asking for any additional services.

Think again. As wholesalers, we must be able to anticipate our customers' requirements before they do. If we don't, competitors will. Today, everyone in the marketplace can deliver top-of-the-line service and products. As a result. we cannot be passive with customer service issues. In fait, ive cannot be happy wit$ only satisfying the customer, we mudt delight the customer by exceeding tJreir expectations.

In evaluating how to improve customer service, consiiler that most often it physically occur$in our warehouses or distribution cenlers. It is here that the order is filled; It is here that we pick the right magerial, pack it to prevent damage, an@ ship it to the right address in a timefv manner.

Customer ser,fuice is the true value of warehousing; People will pay for availabilitv. Remember Tickle-meElmo dolls or;'for us old-timers, the oil embargof The warehouse is a strategic cusfomer service weapon. this requires numerous warehd$es stufled to the gills

On the contrary, the larget, centralized trend is to warehousesJthat reduce overall inventory on-har;d while actually improving service. aqd more important, reducing the total cgst of distribution. Information is mQved, and product is'shipped directly tg the point-of-use.