HomeCenter Merchant

BILL FISHMAN

Bill Fishman & Atliliales l1650lbe1aplace electronically transferred san oiel;,ba,.-gilza retailer's accounts payable plier's accounts receivable.

lA nsHIgn Mary Jones ar store unit V No. 105 scans a customer purchase of a model C300 hammer. A few minutes later another cashier, Betty Smith, also scans a purchase of a model C300 hammer. Automatically the computer is triggered, indicating that the store has reached the reorder stage for the C300s. The computer immediately cuts a purchase order. Within seconds that order is transmitted electronically to the supplier.

The supplier fills and ships the reorder. The master carton is stickered with a UPC label that indicates there are 24 C300 hammers inside.

When the order arrives at the receiving dock of store No. 105, the receiving clerk checks the contents of the master carton and scans the UPC label electronically, authorizing payment to the supplier. Funds are then

This technology does not lie somewhere in the future. lt's here. Now. It's being used in the supermarket industry and the mass merchandising industry. Get ready. It's on the way to the home center industry.

The key ingredient in the process is called EDI (Electronic Data lnterface). lt enables the retailer's computer to talk to the supplier's computer and the banking computers. A lot of cooperation from retailers and suppliers is required for it to work. Most of all it requires standardization.

The process starts with UPC (Universal Product Codes) printed on the packaging of the merchandise. For the system to work for the benefit of the entire industry, these codes must be identical for each retailer. (Unlike SKU numbers which are different for each retailer.)

The communications must now be compatible from the rctailer's @mputer to the supplier's computer and cvcntually to both bank's computers.

Some rctailers today are utilizing the Eagle System which is one of the compatible EDI systems. More are on the way. But, the industry must make a move now to demand compatibility of the systems before we become entangled with a mish mash of electronic data that brings us no more than additional paperwork and obsolete expensive equipment.

L-P tion heart and construction common have tight knots and the natural variations of color and pattern which distinguish them from cedar and pressure-treated lumber. It s an upscale look At a down-to-earth price.

LP Desert Dry Redwood is kilndried so you can offer economy and lf you think it's someone else's problem, you're wrong. You will be involved in UPC and EDI in the very near future. Not with 100% of your product offering. Maybe never with lumber items. But, a large portion of your fast-moving hardlines will be on a system. performance every step of the way. By taking the moisture content down to 19 percent or less, the load is lightened and you get more board feet on every truck Desert Dry Redwood loses nothing but water in the process On the job, joints stay tight and shrinkage is controlled. from the to the supIt also maintains a superior resistance

Coming in March at rhe 1989 Home Center Show, every retailer and every supplier will have an opportunity to hear and be heard on the topic of UPC and EDl. Three professional programs are scheduled to discuss the benefits and the pitfalls of this electronic phenomenom.

We still have humongous auto repair bills because the automobile industry never got together to make sure the bumpers line up. Computer system obsolescences in our business have wasted hundreds of thousands of dollars for retailers in our industry. Don't let it happen again. Get involved now. Keep up with tomorrow's technology.

August 1 988

Merchandising

Moulding ( '1! '1tt ! ' r' -

Irtion fbr rctuilers. \\ \1\1i) \'s adr.crtising kit contains 12 llrgcs of' atl slicks, instructions ancl it re-ordcr fbrnr. F-ach ed is tlrgcte(l llt pronloting rioocl ntoulcling and nlillwork sales. "IIorv to Mcrchanclisc Short t.cngth \1or-rltlings. " ri hich provicles thc rctailcr ri ith sor-rrtcl techniqLles on selling short length nloulclings tcr both the br-riltlcr ancl the clo-it-roursell-cr. is another sale s lrid ri hich has becn popular with retailers.

The Wood \loulding & \lillwork Proclr-rccrs .'\ ssocialion is conti n r.ral11' r"rpdating its ntcrchitt.ttlising ltitls to nrore cfl'ectivcll, work with builcling ltateriuls rctlilers. "\\'c rl elconre sr.rggcstions fioltt rctailcrs across the country on itenls thel nlight ncecl. or \\'a)s \\e can intpror.c or.rr literature ancl other ntitterials." Tonlasko crplai ns.

For litrtlter ittlttrtttcttirtrt tttttl u ltrttt' lis!, t'orrttttt tltc Ll ttod ,)lorrldin,q ,-l ,\l i I tt'o r k It rocl u t c r.s'1 ssr tt i tt I i rt rt, I ). ( ). l]o,r l.tl 7,\. Prtrtluttl, Or. 971)5ctl.

How To Move Mouldings

o Maximize tie-in sales by displaying moulding in related decorative product dePartments such as wallpaper or Paneling or hobby sections.

o Provide customer conveniences such as moulding wall charts, a giant size ruler for measuring or color coding of profiles.

o Display short lengths Prominently and price by the Piece.

o Be knowledgeable about the product.

e Sell wood moulding as a decorative product. not just as a building material.

o Sell ideas along with wood moulding including suggestions for home projccts such as Picture frames by utilizing "500 Wood Moulding Do-lt-Yourself ProJecIS.

o Keep literature near moulding display.

o Promote aggressivelY, esPecially in the fall which is the best season. Tie moulding into advertisements for related Products such as paneling and wallPaPer.

Molded Door Market Growth

\ccorrlrng to ir sLir\ cr e or.tcllre tcrl b) \lrtsonite ( orp. illtt()ltg .l .150 builclcrs und t)5 ckror rlistributor:. l()88 shoLrld contilruL- to bc rr grou tl.r

\ L'ilf tbr ntoltletl iioor sitlcs

"l.r"ctt in rihlrt lirrc'cltstcrs:ln rrill bc ir relrrtir clr lllit or slightlr rleclining hoLr:ing nrrrrkct. inclcpcr.rclcnt 11,,,,1 111111111111\'tLlfLl\ \'.lll \',,lltillLlL I,, girin:harc hr Lrtilizing nL-\\ (le\igns to bLr iltlcrs ir r.ttl I'tonrco\\ ncr\." slrirl

I)ie k I Iinz. \lrrsonitc's dirce lor ol t.l lr r-k c t r r-t g.

In l9S-. )- ol thtisc Ironrc br-rilrlcls sLlf\c\ccl inclicrrteil thill thc\ Llsc nrolclccl rloors lrs ir \tillr(iiir(l

1L'iitLlrc in thcir honrcs. \lolclctl tioots ii crc Lrscrl b1 1t) ls ir \llrtrlrrrrl lcrrtLtrc in I ()86.

\lolrlcii cjoor: l-tliic lrluirt: trcct-t n',,rr' l\"1'trl,rr irt llC\\ r{,tt\lrurliillt. \\ irilc Lhrs trlrrl ri ill e ontinLrc. Lhc irur.r'rhcr- ol ntolclr,-rl cloor': pLirehli:ccl lor thc rcprrir rrrtrl rcnrorlcling ntrrrke t ir lrflle r ltrl hr \l r.{ 'llil. l,, r.till sc\ Cn \hiirL- lloitlts l'rotll I t)t- tir

I9tl1 1 Lrrrcrrtll nrolrlecl rloors rcprcse nt 10 9 l, ot'thc totul clriors r,rscri tn rcsitlcntirrl tcpitir rtttii rcnrotlclirtg I3r I ()()l ri c pro jccl Ll\ilgc to lcl)rcscttt to cleclrv ancl insects..l)ried, trinrmed, ancl surfuced so sizes lrrc true, it's plrper"irapperl for protection in 2"r ,1", '2"x6", '2" x 8" -1,'2" dimensiorrs imcl lengths up to 20 feet.

F,rr- rtrore irtlirrmettiort rrbout I)esert I )rv Reclrvood or anv of our other gnrdes of reciu,ood, call Bob Nlosby, Redwood Sales N1anager, at (707) M3-7511.

L-P Deserl I)n Redrvmd. No krnger resen'ed for a priviiegecl feu,.

crccudvr vlcc prcrldcnl

A NgW membership category has Flbeen created by the OLA board of directors. Responding to numerous requests from individuals who are no longer active in the Oklahoma lumber industry, but wish to keep in touch with their friends and remain part of the "lumber family," the board voted to establish the new class of membership.

For an annual fee of $35 individuals who have been former members are eligible to attend all OLA events and meetings except board meetings. In addition, they will receive the OLA Monthly. Other services and benefits are being studied.

A general call has been issued to former retail and associate members or retired yard owners to contact the OLA oflice at l-800-444-1771 for membership forms.

The board also has approved setting up a credit card program for OLA members. The automated approval program can be used on Visa, Mastercard, American Express, Diner's Club, Carte Blanche and Discover credit cards as well as Telecredit and Telecheck. Information is available from the OLA oflice.

This is the second of several columns to explain what is going on economically in Texas-ed.

T He Iong-range future for Texas

I continues to be bright. For the foreseeable future, Texas will remain an international center of energy expertise. But, continuing diversification will lead to a more balanced economy. By the end of this century, Texas will pass New York to become the second most populous state in the nation.

The state will remain a good place to do business. Industrial gas and electrical costs will still be among the lowest of the l0 largest states. Commercial buildings which were overbuilt in the late 70s and early 80s have provided a wealth of low cost office space for new and expanding companies.

The growth in gross state product will consistently outpace that of the national economy. Harris County, (Houston), and Dallas County will rank third and fourth nationally in terms of new jobs created in the next 12 years.

Perhaps nowhere in Texas was the boom ofthe 70s and early 80s as strong, or the recession of the mid-eighties as deep as in Houston. But again, it's necessary to appreciate the growth that preceded the recession.

In Houston, from 1970 to 1980, population rose by 800,000. There were an average of 40,000 housing starts per year. Construction employment increased by 1000/0. Trade employment increased by 750/0. Finance employment increased by 10070. Health services employment increased by 820/0. Most dramatic perhaps was the growth in personal income which rose from $8 billion in 1970 to $32.5 billion in 1980.

Then, in early 1981, the unimaginable occured - energy prices began to fall, with the spot market price of oil in early 1986 reaching a low of near $10 a barrel. The results were predictable. Employment in mining, manufacturing and construction fell. Housing starts dropped dramatically. Expansion slowed. Commercial building came to a near standstill.

There is no question that the Hou-