How you can save on delivery costs Gt

QUESTION:

When you open or add another lumber yard, how do you know what type of trucks and how many of each you need to make deliveries?

ANSWER:

This is really three or four questions in one and there isn't enough information given to answer any of them properly without making some assumptions. You don't say how far you must make deliveries, to what type of customer, into what kind of terrain, what products and what services you will be offering nor how much in dollars you think be delivering in your first operations.

These are questions you should ask yourself before making a judgment. The proximity of any new yard to an older one must be considered also by the joint operator.

For illustration purposes, let's say that you estimate first year volume at $1,500,000, 5090 of which, or $750,000, will be delivered to contractors building homes. You are located in an area that has no sugzu sand or mountains to contend with. Your delivered customers need, and you plan to provide, these broad product categories of materials.

Framing Lumber

Mortar Mix

Windows & Exterior Doors

Boxing

Roofing

Sheetrock

Interior Trim/Doors

Fireplace Material

The customers require the seller to place shingles and wallboard on the roof and under roof respectively.

A quick review of this information indicates that for every "house" sold in total to a customer, you will require at least nine trips to make the necessary deliveries per house. Only two of these normally, framing lumber and sheetrock, will fill the bed of a 2Vz ton dump truck. The other seven deliveries will be partial loads. In addition, many of these less-thantruck-load materials require special handling and/or special equipment, like a van for millwork and a conveyor to place shingles on the roof. It looks as if at least two trucks, one a dump and one a van, plus a conveyor for shingles would be needed.

The first problem with this would be cost effectiveness. Two trucks in the 2Vz ton, 16 'to?n' range to deliver $750,000, or $325,000 annually would be a cost disaster. In addition, seven of nine deliveries to be made will not fill either truck. Thus, big expensive equipment would be idle or underutilized most of the time.

An alternative suggestion would be this. Purchase a I ton chassis with heavy duty shocks, clutch, brakes, dualrear tires, etc.In concert with the dealer, have a 12' to 13' flat bed dump rigged for stake sides with a fifth wheel mounted on the chassis. Also, with dealer's help, purchase a 20' flat bed dump (20,000 lbs.) goose neck trailer and a portable van body for the trailer.

This configuration of a I ton, trailer with dump and a forklift mounted

CHASSIS plus conversions can equal economy in lumber delivery. This model lrom van body for the trailer will cost about the same as one 2Vz tonflat bed, but the advantages to a small dealer don't end there. If seven of nine deliveries are less than a 2Vz ton, 16' dump truck load, the I ton can carry them more economically-generally 9 MPG versus 5 MPG (gasoline). When framing loads and sheetrock are delivered, the I ton with trailer working on two of nine deliveries can handle them at about the same cost asthe2Vz ton dump.

When you have windows, doors and other millwork, which you wish to protect, use the van body. It generally takes 15 minutes to set on or take off the trailer. From a practical standpoint, the trailer and van components will not wear out and require little maintenance. As business expands, a second I ton, like the first, will be the next piece to add to the configuration. This would allow expansion to a point where the trailer and van could be moving more of the time, but most of your deliveries, 14 of 18, would be made by the I ton alone at 9 MPG, with easier maintenance and lower cost plus lots of versatility. Oh, yes-a heavy duty conveyor at $700 or $800 for shingle handling woud be needed.