The anatomy of an efficient yard

By Wally Lynch P.A.I.D. Associates

T HERE are lumber and building I material dealers in this country doing from one to four million dollars in sales per month from facilities occupying less than two square acres. A preponderance of these high volume operators is known to us under the name of Home Depot or something like that.

When one thinks about it, the stores are really two acres of lumber yard in an air-conditioned box. Therein lies the secret of an efficient yard.

They and many other successful retailers have recognized, and put into being, that the only purpose of their facility is to profitably serve their customers. The size, the shape, and the configuration can vary if the facility effectively serves its purpose.

Retailers are in the business of managing inventory as it passes from producer to consumer and getting paid for their efforts. Those who have 20,000 squarefeet underroof and 60,0OOsquare feet of yard have to treat all 80,00O square feet like one showroom. All merchandise has to be accessible, easy to locate and presented in reasonably pleasant surroundings.

Ifthe housekeeping is good, people will want to come backagain and again, particularly if they find what they are seeking.

Aside from having the right assortments, the merchant needs the right quantities at the right tirne. The days of inventories appreciating on the shelf are gone. Turnover and cube utilization are vital regarding products. Whether it's a box or a yard, that's where each retailer must provide for those products and services they will provide to their customers.

Products have more visibility than service and each one must go on a similar journey through the retailer's sales process. Four things happen to every item sold from the yard. Everything mustbe received, stocked, picked (when sold) and loaded (tumed over to the customer). The process starts with a purchase from the supplier. This sets three activities in motionwhere the merchandise will go, how often it will be ordered, and when it should be received.

The receiving process should be timed to the need for ongoing product availability to the customer. The shipment should be received with no interference with customer needs, and with consideration for demurrage costs.

The stocking process addresses accessibility, protection from the elements, security, and cube utilization. Merchants operating in smaller areas will often inventory and order merchandise every week. Thus, some lines are tuming 25 to 26 times annually accommodating about two weeks of anticipated sales as opposed to inventories managed to turn over four times a year.

Story at a Glance

How to be efficient regardless of size or shape of store or yard...techniques for moving merchandise throu gh receiving, stocking, selling and delivery to customer.

It's not the physical size and configuration of the facility that's important, but how management chooses to move merchandise through the sales process. The way merchandise is stocked dictates how it is "picked" or obtained for the customer.

Obviously the choices are by hand or machine. Either way "loading" goes on in every yard or box either to a customer or a delivery vehicle. Certainly each of these four activities of receiving, stocking, picking, and loading vies with the others for space, manpower and time slots in which to accomplishtheneededtasks. This requires management to manage these ingredients no matter what people and assets they employ.

Numerous service oriented activities go on at every lumber and building material dealer's place of business. These too musthave space, manpower, and timely execution. Some of the most frequently observed services: Special Orders. These go through regularhandling plus having to be set aside while awaiting the customer's pleasure. (A special area and possibly people may be required.)

Product Assembly. Some merchandise bought and received must be assembled for display or for a fee at the customer's request. Repairs and Returns. Products which must be repaired locally or retumed to supplier or held for inspection and disposition.

Delivery. This generally requires a staging and preloading area. (A good trick is to build a platform the size of your truck beds or mark the ground as a guide. Preload in either area exactly as you want to load the truck.)

RACKING is an efficient way to stock lumber in the yard.

Production. Items such as countertops, trusses and pre-hung doors manufactured within the yard.

Equipment. Space, manpower and management for forklifts, trucks, trailers and conveyers and their maintenance.

The efficient yard is not a physical dimension, a state of being, a group of buildings or a destination. It's more a lifetime joumey through sifting sands. The objective is maintaining pleasant surroundings for all who would buy our wares while passing product to them competitively and profitably for the company. The activity is simple with only two dimensionspeople and assets. Simple, but not easy.

Device Tracks BE Robbers

An electronic tracking device hidden in a store money bag led police to suspects in an armed robbery of a Builder's Emporium unit in Anaheim, Ca.

Developed for banks, the system features an electronic transmitter which is usually pre-concealed in loot expected to be taken by a robber. Once activated, it emits a signal to guide authorities to the device.

The manufacturer, Electronic Tracking Systems Inc., Plano, Tx., and police were reluctant to provide details of the device, since its effectiveness depends on thieves not detecting it. "I don't even want to talk about the device," said one lieutenant.

Builder's Emporium began using the tiny transmitters after a string of robberies at its stores. The two suspects allegedly hid inside the Anaheim store March 5, confronting the assistant manager after closing. They forced employees to lie down on the floor of a vault room and then tied them up, said police.

After the assistant manager opened the safe at gunpoint, the thieves emptied it of cash, including the signaling device, and fled. Employees soon worked themselves free and notified police, who pursued the suspects by helicopter and apprehended them, police said.

WRCLA Opens New Offices

Ken McClelland is the new general manager at the Western Red Cedar Lumber Association's new head office in Vancouver, B.C. Butch Bernhardt, secretary, remains in the Portland, Or., office.

A cedar marketing specialist who has worked in both the southeastern U.S. and B.C., Canada, McClelland will oversee an expanded market development program targeted at cedar product specifiers and users. Field offices will be established in the south and midwest to represent the 13 cedar producers in western Canada and the Pacific Northwest.

Industry Lobby On Enviro Act

Anticipating reauthorization of the Endangered Species Act in September, the forest products industry has formed a taskforce to lobby for amendments to the act.

The National Forest Products Association. American Forest Resource Al- liance and American Forest Council are working to promote industry's position. A communications committee staffed by AFC members will coordinatepress relations including grassroots mobilization, conferences and advertising.

APA Division Mergers & Moves

American Plywood Association is reorganizing quality services and field services divisions, moving Coeur d'Alene, Id., activities toTacoma, Wa., headquarters and merging Florence, S.C., and Dothan, Al., laboratories at Atlanta, Ga.

Jerry Bird, Coeur d'Alene manager, is now in Tacoma. Jim Cole, Dothan regional manager, is managing Atlanta operations with Phil Sutton, Florence, and Jay Peters, Dothan, assigned there. Dennis Millman has moved to Shreveport, La., with the retirement of Bob Cotant, regional manager there. Steve Blankenship, Florence, is replacing him in Duluth, Mn. Bob Elliott will manage the Eugene, Or., region and laboratory when Ralph Johnson retires in the second quarter. Ed Underwood is now manager of central and westem field service divisions which have merged in Dallas, Tx.

14.8% Ganadian Lumber Duty

Provisional duties of 14.48% are tn place on Canadian lumber entering the U.S. following a Department of Commerce finding that Canada subsidizes its softwood lumber industry.

Importers of record which can be Canadian producers will post bonds equal to the duty withU.S. Customsfor lumber coming from all Canadian provinces except the Maritimes which are exempt. A final Commerce Department decisiononsubsidies is due inMay and a final decision on injury by the Inter- national Trade Commission inthe summer. No duty will be implemented if either is negative. Bonds will be retumed if this happens.

Both the cash and futures markets for Canadian lumber responded to the decision with sharply higher prices.

Fearing price increases, the National Lumber and Building Material Dealers Association's board voted to oppose the duty. They have asked the Commerce Dept. for a hearing on it.

Lumber Industry Directory

North American lumber, plywood, phone numbers and other pertinent inveneer, wood panel and treating indus- formation. Moulding, millwork, pallet, tries and secondary wood manufactur- box, container, structural component, ing segments of both U.S. and Cana- specialty product manufacturing, furdian markets are listed in the 1992-93 niture, cabinet and component manuDirectory of The Forest Products In- facturing plants are included as well. dustry.

All listings are indexed and cross

The 67th edition of the directory, referenced. Condensed briefcase size whichhasbeenanindustrystandardfor directories are available as Business over 70 years, includes every major Travel Editions. executive and division office, plant,

The directory may be ordered for mill,wholesaler,dishibutor,jobberand $197 from Forest Industries, 600 importer with narnes and titles of key HarrisonSt.,SanFrancisco, Ca.94LO7, executivesandstaffaswellasaddresses, (415) 905-2200.

UNION Planing Milland Union Forest Products, Stockton, Ca., have merged with Union Planing Mill now managing all redwood, Douglas fir, pine, cedar and hardwood lumber sales. Union Planing Millrec€ntly celebrated its 100th birthday with an open house for over 200: (1) Lucille & Ralph McClure. (2) Julie Wright, George Litlle, Dan Kepon. (3) Mignon Little. (4) John Ferrell, Phil Brune. (5) Aubie Harness, Ralph Mc€lure. (6) Don, Russ, Beth & EruceGatschet. (7) Don Waxberg, (8) Tony Moerman, Russ Gatschet, Dick McClure. (9) Jack Lloyd, Don Stewart, Ray Gratz, Ollie Mahin. (10) Eddie Mannie, Brad Harnden, Bob Harnden, Jim Eggink. (11) Gary Steiner, Dan Phipps. Union Forest Products and Union Planing Mill have operated under the same management team since Union Forest Products was founded by the late John R. 'Jack' Little in 1953. Known as the "little company,' Union Forest Products retains its machinery and real estate interests.

Treated Wood TV Advertising

A tv advertising campaign for pressure treated wood will blanket the northwest through May 9 as a joint effort of Osmose, Allweather Wood Treaters, Chemco, Inc. and Westem Wood Preserving Inc.

Targeting both the d-i-y and contractor markets, the ads will highlight the benefits and lifetime warranty of Sunwood and close with an 800 number for consumers to call to find their nearest dealer.

Both Portland, Or., and Seattle, Wa., will receive extensive exposure on prime cable channels such as ESPN, A&E and the Weather Channel. KGW and KATU-TV in Portland and KINGTV and KIRO-TV in Seattle will run the ads on various news programs. Consumer calls will be serviced by the Osmose west coast office.

1992 Dubbed A "Two-H" Year

" Call 1992 a' Two-H Year'," George A. Christie, F. W. Dodge'schief economist, said. "Homebuilding and highways are where the action is."

His figures showed January's total residential building continuing a steady climb with an lL% advance over December and 4O% above Jan. 1991. All improvementhas been in single family building, Christie noted.

"Favorable interest rates and the prospect of a tax credit for first time home buyers will keep the one family housing recovery going through 1992 even though the overdeveloped rentaf condo market remains dormant. he said.