How you can save on delivery costs ffi

QUESTION:

Recently a reader we had met asked: "What should a dispatcher's normal responsibilities be in a lumber yard like ours?" His yard, in the $8 to $10 million volume range, owned and operated 12 trucks. The answer given was specifically geared for his operation, but the basis of it applies to almost anyone performing the "dispatching function."

ANSWER:

Literally, one definition of "dispatching" is "to send away." Delivery is often defined as the act of sending to an intended destination. Thus, a lumber and building materials dispatcher is the sender of materials to an intended destination. In many cases, the dispatcher must meet time requirements as well. The implementation of such responsibilities revolves around the l0 basic functions listed.

Queslions on delivery costs? Send them to this magazine al 4500 Campus Dr., Suite 480, Newporr Beach, Ca. 92660. Wally Lynch will answer them in future issues. This is your chance to take advantage of his expertise in curting your delivery costs.

(3)

IMPLEMENT COMPANY'S DELIVERY POLICIES. First, does your company have one stating what your people will do for the customer? lf not, why not? If so, what should it contain?

DTRECT THE COMPLETION OF THE COMPANY'S DELIVERED SALES WITHIN THESE POLICIES. Delivery completes the sale and makes it a receivable, but not one dime can be collected until delivery is made. Liken management of delivery to management of receivables !

MAINTAIN THE COMPANY'S DELMRY LOG. Plain and simply, a list of things to be done. It's an almost indispensable planning and managing tool.

(6) MONITOR TRIPS AND DE. LMRIES. How effcctivcly are the company's pcoplc being used? What is thc average first out? How long is the turn-a-round time in the yard? How many miles are driven? What is the value of materials delivered?

(7) OBSERVE AND EVALUATE PREVENTIVE MAINTENANCE PROCRAM. Does the company have a program? Who is responsible for it being used? What is done to solve a problem when it occurs? How is a vehicle lost to maintenance replaced.?

(t) SUPERVISE DRIVER'S ACTIVITIES. Does every driver have a copy of his job description? Do drivers load, unload, drive forklifts, take orders, etc.?

(9) COORDINATE LOADING ACTIVITIES AND EQUIPMENT USE. Are deliveries staged and preloaded? Is equipment rotated among drivers? ls paper work completed?

(TO) DEVELOP DAILY P & L ON DELIVERED SALES. Do you know the value of what is delivered and what your delivery costs are? Can you tell a profitable delivery from one that loses money?

(4)

DEVELOP AND PLAN LOAD SIZES AND MAKE-UP. Prevent the most costly disease in the delivery business-"reactionitis," which generates enormous yard chaos and sale losses.

(5) SCHEDULE AND ROUTE TRIPS. Take the loaded trucks to the customer during his work hours on a mutually profitable basis.

Each of these functions will be further developed and explained in future issues. In the meantime, identify which of the above are in place at your company and which are not in evidence there. They won't all apply in every instance, but they represent a check list for any delivery operation.

"Monagement Sumeys the Black Hole ol Delivery," divided into three seporote dollar volume manuals, under $2 million, $2-5 million and over $5 million. is available for 545 from Builders Express Inc., Ib50 Plano Rd., Dallas, Tx. 75243.

Attention: Wally Lynch

We shlp to ancl from the 48 contlnental states and Into Ontarlo and Quebec, Canada wlthout Inter- llnlng. Coast-to-Coast forest products haullng ls our speclalty.

Homecenter

(Continued from page 19)

(B) For D-I-Y Customers

Evening shopping hours. Weekend shopping hours.

Services

(A) For Commercial & Contractor customers

Commodity deliveries. Fireengine special deliveries. 30day company accounts. Telephone orders. Blueprint takeoff estimates. Salesmen's visits to offices and job sites.

(B) For D-I-Y Customers

Shopping carts, lumber carts, hand baskets. Consumer credit (bank cards, etc.). Installation instructions. Assistance loading heavy purchases. Free twine, flags, cardboard car top carriers.

Availability of installation for some merchandise. Cutting services. Clinics and demonstrations,

SYSTEMS & PROCEDURES

(A) For Commercial & Contractor Customers

Contractor desk or counter. Tickets written for purchases. Tallyman loading of lumber and commodity items.

(B) For D-l-Y Customers

Central checkout. Quick check and credit appraisal. Rainchecks. Exchanges. Refunds. Price changes. Employee discounts.

Pricing

(A) For Commercial & Contractor Customers

Full margins except on competitive commodities. Negotiable corporate discounts.

(B) For D-l-Y Customers

Market competition dictates some selling prices. Variable pricing. Pricing for logical price steps. Promotional pricing for traffic. Lower overall margins to be compensated by more inventory turns.

Promotional Activities

(A) For Commercial & Contractor Customers

Small budget. Pinpointed market easily reached by direct mail. Minimum frequency of promotions. Gifts and Pre- miums cement relationships. Booklets and catalogs effective. Outside advertising and production sources are cost effective.

(B) For D-l-Y Customers

Weekly advertising is a must. All mass media is a consideration. Special purchasing for advertising. Soliciting and administering cooperative advertising funds. In-house advertising production.

While the grass may appear greenerit's not an easy step to position from a contractor to d-i-y operation or from a d-i-y store to contractor operation. The step requires financial, inventory, and operational considerations as well as a shilt in attitude for management and staff. Don't make it a quick decision .make it a realistic one.

Coming In January

Southern Pine Special Issue

Wdler llcldr Jr., owncr, Walter M. Fields Lumber Co., Inc., Memphis, Th., and 2nd v.p. of the National Hardwood Lumber Association, has bcen named 1984 lumberman of the year by the Lumberman's Club of Memphis.

Jlm Hrycr, Bonsteel Lumber Co., Harrison, Ar., will chair plans for the 1985 Arkansas Lumberfest; Blll Mrylleld, Reynolds Supply, Smackover, lst vice chairmani Bcn Mryo, Mayo Building Supply, lnc., Bentonville, 2nd vice chairman; J. L. Mullens Jr., Mullens Builders Supply, Inc., Heber Springs, 3rd vice chairman; Rob McCown, Elk Corp. of Ar., Stephens, associate/ supplier liaison; Tom Nabholz, Nabholz Supply Co., Inc., Conway, retiring chairman.

Gerry Vavak, Leonhardt's Big L Lumber and Home Center, Oklahoma City, Ok., is a new member of the Bethany public schools board of education.

Royct Pennln3ton is now v.p., finance, at National Lumber Co., located in Springdde, Ar.

Wllllrm Murphy is the new co-mgr. at the 84 Lumber store in Smyrna, Ga.

Tommy Grooms and Blllle Crmpbcll are new at Westwood Forest Products, lnc., Climax, N. C.

C. B. "Bud" Slevens, senior v.p., Kirby Forest Products, Inc., Silsbee, Tx., is the new chairman ofthe board oftrustees, American Plywood Association.

Rlchatd Wrlght, v.p.-sales, AndersonT\rlly Lumber Co., Memphis, Tn., has completed a sales trip to Japan.

Josc Lopez is now a district mgr. for Payless Cashways, with responsibility for the El Paso, Tx., retail center.

Mac Moort, Greensboro, N. C., is a new rep. for Kapman Co. in Va. and the Carolinas. Blll Golden and John Price, Richardson, Tx., now represent the firm in Tx. and Ok.

Bod Bhfhy of Blakley Lumbcr and Carpets, Davcnport, Ok., and Bud Blakley Lumbcr Co., Chandler, wasclccted Home Builderof the Year by thc Oklahoma State Home Buildcrs Association.

Dde Boozer, Boozer Lumber Co., Columbia, S.C., recently spoke at a m€eting of the Western Building Material Association in Portland, Or.

Grbc P. Ferrrzzrno is now national sales mgr., building products div., Clairson International, Ocala, Fl., according to Rry Krye, executive v.p.

Thrmen W. Hdl, Lyman Lamb Co., Little Rock, Ar., is the new 3rd v.p. of the Mid-America Lumbermens Association; Grrdy Ollle Jr., Geo. Ollie's Lumber Co., Inc., Pocola, Ok., was elected 4th v.p.

Rel Olscn, Western Turnings & Stair, Commerce City, Qe., and his wife, kllr, vacationed in Italy and Greece.

Jrmes A. Hrrrls is the new N.E. FL. sales rep for American Standard's U.S. Plumbing Products Group.

B. Dale Srulley has joined the builder products div. of Luwa Corp., Charlotte, N.C., as operations assistant. Edwrrd W. Hglllburton, Jr. is a new product engineer.

Lelf Penson has been appointed product service mgr. for Sachs-Dolmar Division, Atlanta, Tx., according to Jim Yount, pres, l)ale Eisert has rctircd from H. E. Ketchanr Lumber Dealers, Muskogcc, Ok., al'ter 33 % y'ears. Lold Bivins has retired as mgr. of the Clhecotah branch after 291./: years.

Harry Horrocks, director of governmcnt affairs, National Lumber & Building Material Dcalers Association, Washington, D.C., and Jane Hollinshed, daughter of Joe Hollinshed, Cape Fear Supply, Fayetteville, N.C., honeymooned in the Bahamas after an Oct. wedding.

Steven l'irkins is replacing Ramon Jordan who has retircd l'rom Seiling Lumber Co., Seiling, Ok., after 30 y'cars.

Joe Kaufman, pres., Kaufman Lumber Co., Little Rock, Ar., has been named Arkansas Lumber Dealer of thc Year by the Mid-Amcrica Lumbermens Association. Darrell McFarland, International Paper Co., Fort Smith, Ar., made the prcscntation.

Gene Skrivan has joined sales at Mary's River Lumber Co., Corvallis, Or.

Mit Scott and Joe Aulds have joined sales at Willamette Industries. Simsboro. La. Lydia Watts is now supt. at the particleboard plant with Roger Randolph, new gen. foreman.

Wilson Woolley is the new director ol advertising at W. M. Barr & Co., Memphis, Tn.

Roger Redick is tlie new corporate credit mgr. at Buford White Building NIaterial Center, Shawnee, Ok.

David MacNicol is norv assistant mgr. ol Scottl-'s in Ar.rburndale, Fl. Harry Tomlinson has been promotcd to assistant mgr. at thc Haines (-ity' unit.

Bill Whited is now co-mgr. at thc 84 Lumber store in Mt. Pleasant, S.C. M.J, Robichaux Jr. and Edward R. Wedee Jr. have been added to the board of directors ol Bernard Lumber Co., Inc., New C)rlcans, La., according to James B. Goldsmith, prcs.

Iluford White, Buford White Building Material, Sharvnee, Ok., hosted rnembers of the Oklahoma Lumbermcn's Association at a barbccue dinner.

Norman J. Sicvert is the ne*' Weste-rn Wood ProdLrcts Association rep in So. Tx. and La.. based in flouston.

\\'illiam T. Robison is lhc nerv pres. of' the American Plywood Association; Ilruce E. L1'ons, r,.p. ancl gen. mgr.; l)avid L. Rogotal , r'.p., marketing; Tcrrl R. Lamp, treas; (icorge'l'. Sleet, director of quality services, and I)ennis J. Hardman, director of infornralion serviccs.

Jcrrr llrunller is rrorr lumbcr'.tlc\ rngr. at Nlanville For cst Products. West \'lonroe. La.

Clalton Blanton is norv lumber salcs rngr. for Louisiana-[)acific mills in Cia.. bascd in Wa1,'nesboro.

Duane Mulsenbocker is norv branch rngr. at thc Weyerhacuscr Co., building prodrrets custonlcr :cr\icc Lcnlcr. Houston, Tx. Darrll Knight is the- nov branch rngr. at the Shreveport, La., center, according to Tom Turner, human rcsources mgr., southern zone.

Randl Thurman is the ncw mgr. at T. H. Rogers Lr.rrnber Co., Stroud, Ok. Mikah Lipscomb is the new mgr. at the Temple- location.

William R. Jorgcnsen, Jorgcnscn-Bennett N'lanufacturing Co., Menrphis, Tn., is a new member of the board of directors of the National Hardwood Lumbcr Association.

(;. W. "Bill" Bechtold has been named sales executive lor Gardner Asphalt Corp. in So. Tx., according to Edmund W. Lanctot Jr., v.p. marketing.

Patricia L. Sacha is norv mgr., promotional services, at the home products dir'. of Rubbcrmiiid, according to Harrl C. Chapman, director, advcrtising and rnerchandising.

Jack Bland, lndiana Lumbermens Mutual Insurance Co. representative in Tennessee. has retired.

(iene Braf is now responsible for salcs/ customer service at Canadian Millrvork, Inc., I'reeport, Tr.; .lim Lougher is southcnst sales mgr. and Marvin Wood is northeast sales mgr.

Plle I|1rne is the new yard superintendent at Nlungus l;ungus Forcst Products, Clirnax, Nr ., according to Hugh l\lrrrrgus urrJ lrctldl Fungrrs.