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ELOAD centers have made significant changes in the way this industry shops for dimension lumber and plywood.

Gaining strength in the lean days of l98l when they were able to help the dealer who needed to make smaller, less costly purchases of lumber, reIoads have continued to grow. Al- though the early reload centers were located near the Canadian border, they are found all over the country today, owned by lumber producers, private operators and railroads. Home centers, retail lumber yards, wholesalers and industrial lumber users are customers.

Canadian lumber still dominates al- though domestic species travel through some of the centers. For example, a recently opened reload center in Eugene, Or., is serving as a contact between mills and customers in the Pacific Northwest.

Canfor U.S.A. Corp., Boise, Id., has been one of the most active lumber companies in the reload business, setting up reload facilities in key markets. At present, they are serving 30 states with eight reload centers. Four are located in the Sunbelt at Fort Worth and San Antonio, Tx., Rocky Mount, Va., and Memphis, Tn. Denver, Co., serves the mountain states area. Most of these centers cover geographical markets of 250 to 300 miles.

Management at Canfor says that they have found the process of unloading railcars, sorting units and then trucking orders to customers allows them to compete with fixed distributors in economy, speed and convenience.

Patrick Tyler, sales manager at the two-year-old Fort Worth reload center, says "The biggest advantage of the reload center for ttre home center is our ability to tailor an order to its individual needs." Timely shipments and competitive prices are other advantages which he credits to the reload center.

Tyler asserts that many customers have switched from rail to reload in the two years the center has been open. "The independent retail lumberyard owner is the backbone of our business," he adds.

Story at a Glance

Quick delivery, competitive prices and convenience arc claimed pluses for reload cen. ters...mixed or small orders are a specialty...original Canadian border locations have extend. ed, into the south and west.

When asked "Why do you use a reload center?" Ronnie Deford of Deford Lumber Co., Duncanville, Tx., replied "It's price competitive." He also likes the advantage of being able . to get items which he normally doesn't inventory when his apartment contractor customers want them, as well as the convenience of having materials held until he's ready for them.

Ken Harris, manager of Black Forest Lumber Co., Colorado Springs, Co., calls buyirig from the reload center "expedient." He's 65 miles away from a reload center in Denver and likes to be able to pick up a partial load when he needs it. Keith Weber, purchasing agent for Crissy Fowler Lumber Co., also located in Colorado Springs says, "The reload center is good for a quick stock when you run out of something."

On the east coast, Conrail operates five reload facilities which they call their lumber transfer and distribution system. The Conrail-Mathew LTD Center, a new l0 acre plus terminal in Elizabeth, N.J., is typical of their operation in that it is owned and oper- ated by an independent contractor, Mathew Andruk.

It provides ready access to the local highway network for truck deliveries and offers storage facilities including covered storage for specialty woods.

In cooperation with Canadian railroads, lumber shipmbnts in boxcars or flatcars are interchanged with Conrail for entry into the U.S. "Conrail's lumber transfer and distribution center at Elizabeth offers an excellent opportunity for shippers in Western Canada and great potential for mills and wholesalers in the U.S.," notes Charles N. Marshall, senior vice president-marketing and sales. "They find the combination of low rail transportation rates, flexible inventory control and excellent service a very attractive package."

Larry Boyles and Jeanne Smith, who operate Valley Trans Loading in Eugene, Or., are working with Burlington Northern and Southern Pacific to bring lumber and plywood to their area from Northwest mills. They feel that they can offer an advantage to wholesalers in their area who in turn pass it on to their customers.

Reload centers have less overhead than a fixed distributor. They also have exceptional flexibility and mobility. Since a reload center usually has little or no property, buildings, or equipment and minimal employees, it can be moved readily if the market area shifts.

The Canfor reload center in Denver, Co., for example, is worked by an independent operator with shipments to customers being trucked by common carriers. Joe Reininger, manager at Denver, is based in Boise, Id., handling the operation by telephone.

Reininger cites the "flexibility to enter a market readily and leave if necessary" as a great advantage for a reload center. He also believes that the reload fills a gap for a retailer between the direct shipments from the mill and the fixed distributor.

Because the reload operates more efficiently, he says they can be more competitive in offering the products and services while still maintaining the integrity of the marketplace.

Reload facility operators, wholesalers, home center lumber buyers and retail lumberyard managers throughout the country seem to agree on the benefits of the reload center. Availability of small, mixed loads, short delivery cycles, and competitive prices are all listed as perceived advantages.

What ls A Reload?

The definition is changing as the use of reload centers becomes more widespread, but the following definitions serve as a guide -ed.

Reloadl. A warehouse or distribution facility located relatively near producing regions. A reload operation purchases inventory in quantity, blends various items to customers' specifications, and reships them as mixed cars. 2. See Border Point. 3. A location where truckloads of logs are assembled from off-highway vehicles and reloaded on highway trucks or rail cars.

Border PointA location along the U.S.-Canada border to which ship ments of Canadian wood products are consigned. There they are broken down, reloaded on a truck or (ess often) a railcar, and shipped to an ultimate destination. Also called reloads or lumber transfer yards.

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