Western dealers give computers high scores

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|"?,Y:,".,?,,,'i':1.l;; ;,;,; profit margin improvement quicker billing and payroll . . better management information and decision making." Comments like these underscore how two Western lumber dealers benefited from recent computerization.

Woodward Lumber, Las Cruces, N.M., and ABZ Lumber, Denver, Co., modernized their mega-dollar building material companies this year with Aid/Man computer systems. Both say they witnessed dramatic improvements in profitability, business operations and management effectiveness.

Aid-In-Management, Inc. (Aid/Man), offers computer systems that were developed by lumbermen for lumbermen. A sub- sidiary of Builder Marts of America, [nc., the systems are presently being utilized by more than l00lumber dealers throughout the United States.

Gary Woodward reportedly found the computer paid for itself in ten months. Savings in inventory and more effective internal controls boosted gross profit margin nearly 30/o at his $10 million dollar operation.

Inventory analysis reports alerted Woodward to the fact that several thousand of his 10,000 stock items hadn't moved in one year. Now, he is in the process of reducing inventory by $300,000 to free cash and reduce carrying charges related to excess inventory.

He found that 325 of 10,000 items accounted for 8090 of the sales and that 120 of 24O0 customers brought 8090 of sales.

The program aided Woodward's truss manufacturing operation. A single, pre-fabricated roof truss order signals the computer to itemize each of its component parts, deduct them from inventory, cost the total unit and register the need to re-order parts automatically. As lumber prices fluctuate, each component number is instantly re-priced to help maintain gross profit on every succeeding order.

In other processing areas, the payroll system now does in 20 minutes what formerly took two hours. The payables system identifies opportunities for cash discounts and the receivables svstem

Story at a Glance

Lumber dealers modernize operalion with computers . . Inventory savings. better inlernal control tlme savang, accuracy termed dramatic.

prohibits sales to customers placed on credit hold.

Bob Mandel, owner of ABZ Lumber, searched for a computer system before he installed the Aid/Man unit five months ago. He was familiar with computers, having used a service bureau for years.

His $9 million operation, which dates back to 1934, saw benefits in each computerized area. "We run longer into the month before closing," Mandel noted, "which adds four days of purchases to the monthly invoices." Faster return of money boosts profitability.

Inventory management information led to more turn and profit on every stocking item. Slow movers are being deleted and overstocks trimmed.

Daily reports provide "very helpful management information," he noted. "We are integrating these financial reports into management decision making, taking advantage of receivables aged analysis, customer status, credit limits as well as the inventory system reports."

"The quotation retention system enables our desk employees to quote a job and update line items or quan-