:l$^"'ttDA MOULDERS & GRINDERS

Land of DINEH Reputation by Product PONDEROSA

PINE

Fine Textured/ Kiln Dried

NAVA.PINE Premium Quality

Lumber

Half Pak HIL.

NAVA-PAK

Handi-cut/ Home Ctr. Brds.

Half Pak PLL. and PJ/{.

NAVATRIM Premium Mldgs. and Millwork

Bundled/Unitized/

WAYN E GARDNER eiecutive vice president

Ivnen ASSocrATroN of b

u costs and thus reduced profits were found to be theft, excessive phone use, insurance, equipment break downs, moving stock within the yard excessively, shipping full loads on trucks, substance abuse problems. i:i:ilii!i!ii:ll:iJl:l:iii:li:lil:i:li;iltill:lii:itil:i:illlii:ll:iiiili:lr{l Thot's How lt Goes! til:'i:Lfil:i:t$fiilili:!:l',,!t::.l.ililii'irilli:ltlllill:lllttli!::,'.i!lll''t

Southern California recently concluded a series of area meetings in the various marketing areas of the association. Results of a survey conducted earlier revealed cost control was the subject uppermost in everyone's mind. Thus, the area meeting's subject was cost control.

This was the first time a roundtable type of meeting was conducted. Each company represented was asked to discuss cost control and how they handled various aspects of it within their own organization.

It came as no surprise that inventory control was considered to be a major problem. Many ideas were discussed including the following. Trying to keep adequate inventory to handle the customers, but not excess merchandise. Having the inventory on computer was a big help. Actual usage figures can be seen and thereby the inventory can be handled more effectively. Some yards do a very effective job visually. Moulding and upper grades of plywood seemed to be items not thought about too often. One firm's representative mentioned having a fairly large amount of stock in one grade and only having sold I I sheets in a year. His feeling was that it could be dropped and he wouldn't lose any substantial amou'nt of sales. Inventory turn is the productivity of your capital. Make it turn faster. One way of doing this is to eliminate slow moving items.

Accounts receivable was also a major concern. The following were among ideas expressed. Extending credit is the riskiest part of any business. Watch the accounts, don't let any big ones get ahead of you and consider placing the small accounts that string out on a COD basis. One member said that letting someone else handle his accounts receivable rather than himself has brought the average days outstanding down and his losses to zero. Credit becomes too personalwe let our friends do us in. So think about it. Also be sure to file the preliminary notices on all jobs. It's your protection as a supplier. You jeopardize, if not lose altogether, your lien rights if no preliminary notice is filed.

Suggested remedies included the following. All material going out the gate should be checked by either a checker at the gate or someone in the yard other than the person who built the load, but not the truck driver. Customers not allowed to load their own material unless someone else (an employee) checks it out. Chips installed in phones so that only calls to local areas can be placed, thus eliminating excessive long distance calls. Preventive maintenance on all equipment can be a real money saver in time and equipment costs.

Wholesalers particularly were concerned with shipping full loads, although it might mean more than one stop for the driver. One retailer was going to get another split roller truck so he could take offa 4' load from either side, making drop shipments possible to different locations.

The meetings were very productive for all who attended. The area meeting presents the opportunity for every lumber distribution member or nonmember of the association to get together and trade ideas. And that is a very real function of the association to the industry.