How you can save on a, delivery costs

This month lltally Lynch continues a discussion of the responsibilities of the dispatcher of materials for deliverl by a lumber and building moteriol dealer. Last month's column emphasized thot, regordless of volume or location, the functions of a dispatcher depend upon the delivery policy management spells out-ed.

The delivery policy makes dispatching a feasible job whether it is a full time or an additional duty job. Delivery costs for almost any company in the business represent from ?.00/o to 25 9o of its daily operating expenses. Hence the need to spell it out.

Basically, there is a need for both an internal and an external policy. The former tells the employees what the company expects of them and the latter tells the customer what they may expect from the company. Begin with the part the company wishes its people to play.

(I) WORK HOUR PARAMETERS:

Bear in mind that the main customer for most delivery dealers is the contractor who begins his work day at 7 a.m.

(2) CEOGRAPHIC PARAMETERS:

The industry neither develops, records nor publishes delivery costs, but they are the key to setting the delivery trading area. Most dealers must carry at least $20 in sales value per driven mile to make money on delivered sales. Thus, within a l0 mile radius a $400 delivery is usually profitable -farther out it is a loss.

(3) SCHEDULING: Picking, staging and preJoading all take time and even your best customer will understand that. Fully loaded trucks have the greatest profit potential. Build scheduling around the capabilities of your people and their equipment. Generally, orders received and planned in the a.m. can be delivered in the p.m. and vice versa for orders received in the p.m.

(4) PRE.LOADING, STAGING AND TURN TIME: When trucks and drivers are not being used for delivery and driving, their combined cost still goes on at about $20 per hour. Therefore, "turn time" in the yard will be the least when materials are staged and pre-loaded. Generally, one man dedicated to picking and loading should be able to handle 20 stops and 6 to 8 turns or loadings per 8 hour day when planned.

(5) BACK ORDERS: The customer immediately forgets what was delivered on a timely basis for that which is back ordered. Have a method to substitute or cancel unless customer is willing to wait.

(6) VEHICLE USE: Maintenance costs are soaring and in many instances represent better than 5090 of vehicle ownership costs for the year. Lack of preventive maintenance and driver vehicle rotation are the main culprits. Assign drivers to vehicle responsibilities and use.

(7) TWO MAN DELIVERIES: A second man or helper on the truck generally adds about 3590 to the cost of the delivery. Generally speaking, all deliveries can be made with one manthe driver with occasional and/or intermittent help at the job site. Two men are needed when something like wallboard, shingles and underlayment must be hand or machine placed after delivery is made.

(8) SIGNATURE REQUIREMENTS: Delivery completes the sales, but in most states only if you can prove it. Know what the law requires and protect your company.

External delivery policy is developed from the internal progrnm, plus competitor postures and customer needs.

(l) DELIVERY PARAMETERS: Set forth days of delivery, geographic boundaries and charges, if any.

(2) DELIVERY SERVICES: Indicate availability of various services at job site after delivery is made and charges, if any.

(3) DELIVERY SCHEDULES: List time table for deliveries either by day of the week and location, or elapsed time from order placement until completed.

(4) BACK ORDERS: One missing piece from an order can stall construction. Let customer know how "back orders" will be handled before they occur.

Such policies won't solve all of your delivery problems, but for all those concerned, they will make a "yard long" job 35" ol routine and l" of "special handling."

"Management Sumeys the Black Hole of Delivery," divided into threeseparate dollar volume manuals, under $2 million, $2-5 million and over 55 million, is available for $45 from Builders Express Inc., I1550 Plano Rd., Dallos, Tx. 75243, Attention: Wallv Lvnch,

Western Hardwood Annual

Tremendous strides in gaining legislative support for the proper public management of the adler resource were reported by the Western Hardwood Association at its annual meeting in Reno, Nv.

Outgoing president Marvin Noble, Noble and Bittner Plug Co., Hebo, Or., was awarded an honorary gavel in recognition of the work done during his two year term.

George Powell, who aided in founding the association and served as president during his years as sales manager for Cascade Hardwood, Chehalis, Wa., received a lifetime membership in recognition of his 30 years of service. Jack Kohl, Kohl, Inc., Wilsonville, Or., received a certificate of appreciation for three years as a board member and past president.

Ed Mason, Great Western Lumber Co., Everson, Wa., was elected president. Paul Myers, United Forest Products, Portland, Or., was named vice president, and Jack Kohl Jr., Kohl, Inc., treasurer. Rod Remington, Goodyear Nelson Hardwood Lumber Co., Inc., Sedro-Woolley, Wa.; Charles Slocum. Pacific Coast Hardwoods, Inc., Portland, Or., and Juel Sheldon, Ross-Simmons Hardwood Lumber Co., Longview, Wa., were elected to three year terms on the board of directors.

The Sept. 26-28 meeting was held at Harrah's.

TEAMING up for 1985 new ollicers ol the Western Hardwood Association are (top photo. lefl to right) Paul Myers. vice president; Ed Mason, president; Jack Kohl, Jr., treasurer; (lower photo) board members Rod Remington, Charles Slocum, Juel Sheldon.