How you can save on G a, delivery costs

IrHE DUTIES of any manager are to I plan, execute and monitor the assignments the company has made with the personnel and assets provided. In the case of the dispatcher, the people are drivers, yard men or loaders, and the assets are trucks andlor fork lifts. The major planning steps in managing delivery are listing and logging what is to be delivered, when, where and to whom, load planning and make-up and, finally' routing and scheduling to accomodate the customer and, at the same time, minimize company costs.

The Delivery Log, plain and simply, is a list of things to be delivered along with to whom, when and where. It's a listing of things to be done recorded at the time they are received by the dispatcher. It gives anyone in the company a ready reference on what's to be delivered. It is the framework of a load planning process. It need not be complicated. Lined sheets with columns for date,/time received, customer, location, order and time/date needed are adequate.

Load Sizes & Make-Up Very feworders placed by one customer for delivery to one job site at one time will fill a 16' to 20' flat bed or dump truck. Major exceptions to this are framing loads and/or full house sheet rock orders. These ordinarily occur on average in less than 2090 of all the deliveries made. The dispatcher needs time and support from top management to plan full truck loads going in one general direction or carrying, if not fully loaded, at least enough of a load for four stops, and more if possible. The fuller the truck, the lower the cost per delivery.

Taking an order by phone, putting it alone on the first available truck and sending it out to satisfy one customer will probably do just that, but it is the most expensive delivery to execute.

Scheduling & Routing A reasonable delivery policy provides for orders received in the a.m. to be delivered in the p.m. and vice versa. This allows not only time enough to enter, pick and stage an order, but also should provide for enough orders going in the same direction to fill one truck or have at least four stops on it. Since most contractor customers begin their day at7 a.m., doesn't it make sense, if your company wishes to serve your customer best, that you begin your daily delivery scheduling to coincide with your customer's work day? Think about it. Such planning by the dispatcher makes more delivery time available daily. Furthermore, it will make the picking, staging and loading a routine matter and should, if properly executed, insure that the company's trucks and drivers are productive.

"Management Sumeys the Black Hole of Delivery," divided into three separale dollar volume manuals, under $2 million, $2-5 million and over $5 million, is available for $45 from Builders Express Inc., 11550 Plano Rd., Dallas, Tx. 75243. Altenlion: Wally Lynch.

Osmose Relines Marketing

Osmose Wood Preserving Co. is launching a national brand awareness campaign for 1985 with a newly redesigned bright yellow end tag marking each piece of treated wood.

The end tag is supplementary to their Preferred D^aler Program and technical hot line (l-800-522-WOOD). According to John Horton, director of advertising and communications, this number has generated tens of thousands of calls with over 8990 of the callers wanting to know the names of the Osmose Preferred Dealer near them.

Horton says a growing number of lumber dealers, both large chains and independent yards, have commented on the need to do more to distinguish and identify their product to the contractor and the general consumer.

"In conducting marketing research," he adds, "we found that not only rvere do-it-yourselfers eager to have the opportunity to purchase a branded pressure treated wood, but that retailers were just as eager to have the opportunity to sell a branded product, supported by a full-scale national marketing effort."

Free plans, dubbed the Osmose "Great Plans Series," another phase of the campaign, have been revamp-

ENC0URAGEMENT for do-it-yourselfers to tackle proiects requiring pressure treated ed. They present not only line drawirrgs of projects, but also step-by-step photos of construction details.

An original series of how-to videos accompany these plans. Professionally filmed, produced and narrated, the full+olor video tapes take consumers step-by-step through the construction process in a 'home deck clinic."

An important feature of the plans and videos, notes Horton, is their modular features. "There are mixand-match modular components for addon planters, benches and rail styles. Consumers can obtain project materials lists for these variations."

Going hand-in-hand with the new plans and videos is a large advertising campaign aimed at both consumers and the trade. A unique feature of this national public relations &rmpaign is "The Osmose Handyman," a professional media spokesperson who will travel the nation appearing on television and radio talk shows, giving how-to tips-and, of course, the Osmose 800 number for free plans and dealer refenals.

Bankrupt Evans Gets Loan

Evans Products is continuing to operate Grossman's and Lindsley home center stores with $50 million financing provided by Ienders despite the company's Chapter ll bankruptcy.

All stores had remained open although inventories were low and cash flow was a problem. The loan will enable the chains to ready for summer do-it-yourself business, according to a company spokesman.

A bankruptcy petition was filed when Evans Products was unable to renegotiate $600 million in loans and suppliers were reluctant to continue to provide materials. In addition to the home center stores, Evans Products includes Evans Transportation Co., which was not included in the bankruptcy.

These are part of the seven divisions ofEvans Products, one ofabout 40 companies controlled by financier Victor Posner, a Miami Beach, Fl., multimillionaire. Other Evans Products units included in the bankruptcy are PIC Holding Co., Evans Financial Corp., HMC Funding Corp., Evans Steel City Inc. and Rand Acceptance Corp.

With the Chapter ll filing, the company will operate with court protection from creditor lawsuits while attempting to work out a plan to pay its debts. The total debt of the units filing is around $5,10 million. Evans Products listed the single largest amount of debt, $381.2 million, with assets of $212.1 million.

Creditors include Manufacturers Hanover Trust Co., owed $50.2 million, Continental Illinois National Bank and Trust Co. of Chicago, $31.6 million, and Bank of America National Trust and Savings, $30.4 million.

The 350 chains involved in the retail operation have had combined sales of more than $l billion. In the first nine months of 1984 Evans Products Co. reported a net loss of $34.4 million.

Takeover Move Blocked

Backed by anti-takeover measures put in place last July, Crown Zellerbach is standing firm against Sir James Goldsmith, who has purchased 8.790 of its shares. Goldsmith has said publicly that his group "should not be regarded as strictly passive investors."

W. T. Creson, c.e.o. at Crown Zellerbach, San Francisco, Ca., said "we don't think there are any actions not already in place that need to be taken to protect Crown Zellerbach from any hostile takeover bid."

In the past Sir James has attempted unsuccessful takeovers at St. Regis and Continental Group Inc., both forest products companies. The concensus among analysts is that Goldsmith seeks control of the firm's timberlands which he views as currently undervalued.

PLATEAU FOREST PRODUCTS hasjust opened for business in Albuquerque, and we're now accepting applications for experienced Lumber Tiaders.

The Stakes are High

0ur benefits include a large network of sales and purchasing, advanced computer technology relating to sales and trader assistance, partially paid health insurance, full dental insurance, disability insurance, 401-K retirement savings plan, modern facilities, and follow-up training programs. Applicants should be experienced in Lumber Trading, and be highly motivated to sales and earning commissions.

Construction Up in The West

Western construction continues to rise with both profits and work volume holding at significant levels, according to the CIT Corporation's 9th Annual Construction Industry Forecast.

Increased construction spending and lower interest rates are considered the primary factor for the continued upward trend by the survey's 910 participants, including some 50 distributors and 5l contractors from Alaska, Washington, Oregon, California and Hawaii.

Over 5090 of the dealers and 4890 of the contractors indicated there would be an increase in construction during 1985, while an average of 5390 believe net profits will increase as well.

Home Center lndustry Maturing

The nation's home improvement industry is entering a period of strong growth that is creating more career opportunities than at any time in the past, according to Stuart A. Moureau, a New York executive search consultant.

"After ten years of boom, the home center,/home improvement business shows no sign of slowing down," notes Moureau. "Today, the challenge is to plan and harness this growth, but that requires more professionalized management than the industry has had to date."

Moureau believes the industry's growth will be characterized by more acquisitions and mergers, greater marketing innovation, and a trend toward tighter management controls over staffing and inventories. "After all, these are things few companies in the industry had to contend with since Do-It-Yourself really took off in the mid-1970s. Now it has to play catch up and go professional, just like other retailing fields," said Moureau, who addressed the recent National Home Center show held in Atlanta.

"The home center business is 'semimature,' and it may begin to exper- ience difficulties with inadequate merchandising, staff turnover or overlycautious marketing, any of which could reduce growth. But few experts see this actually occurring," said the consultant.

Moureau, who likened the home center field to much of retailing, described what the industry will be like in 1995: "Larger, but far fewer chains... centralized, computerized purchasing and inventory control...greater reliance on a variety of direct marketing techniques...more innovative, in-house product development...a strengthened internal human resources function...a waning of the traditional male bias associated with home improvement..."

On the downside, the consultant said the home center industry suffers from a reputation for inbred management and a failure to compensate its people competitively. "In view of the management challenges facing the industry," warned Moureau, "it's hard to believe that companies rely on newspaper ads or word-of-mouth to recruit senior-level talent. In any event, they won't be able to attract or retain such people unless they take a hard look at compensation practices."

Housing Changes Ahead

An indepth look at the implications of changes in housing demographics, government policies, housing finance, land use regulation, infrastructure financing and the composition of the industry itself is offered in "Housing America-the Chalhnges Ahead," compiled by the National Association of Home Builders.

Slower population growth with fewer household formations and decreasing housing demands are seen for the '80s and '9G. A shift from first time to trade-up housing, dispersal of population to non-metropolitan areas and an increase in the number of elderly and super+lderly also are expected.

Household formations are expected to decline to l2l 3 million in the 1990s. New housing construction will be only about 15 million units in the 1980s and l4-15 million in the l90s because of slower household growth and more intensive use of the existing housing inventory.

NAHB expects total housing activity during the 1980s to add 21.6 million units; activity during the 1990s, between 19.5 million and 20.5 million units. In addition, the report estimates a minimum of 250,000 new or substantially rehabilitated units will be needed annually during the next 15 years to upgrade substandard housing.

Housing demand will vary widely within geographic areas with migration patterns continuing to favor the Sunbelt. Reevaluation of government aid to help low and moderate income families to obtain decent housing will be necessary. The high cost of credit will continue to discourage potential home buyers in addition to hindering rental projects.

It also is expected that meeting the increasing housing needs will require expansion, repair and replacement of highways, bridges and sewer and water systems despite the predicted infrastructure funding gap of at least $400 billion.

Large and small builders are expected to be able to hold on to their share of large subdivisions for first time buyers while the smaller builders will be maintained by the custom building market, but the outlook for medium-sized builders is uncertain. All in all, the housing market is expected to provide increasing opportunities in rehabilitation, remodeling and Iight commercial and institutional construction.