CLARK SHERMAN COLVIN INC.

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Gargo Facility Gives Edge

Having its own cargo dock on Oregon's Columbia River has provided Dixieline Lumber Co.'s Southern California operations with improved inventory management, quality control and cost savings.

"The main thing is it speeds up inventory turns, allows us to do justin-time buying and manage our inventory better," says Harold Fay, who joined Dixieline in 1993 as buyer for the Columbia City, Or., facility soon after it was acquired from Universal Forest Products. "What took two to five weeks by rail we can ship in six to seven days by barge. The stock comes in cleaner, fresher, and we don't have to overbuy."

There's also better quality control along the way. Dixieline has always relied on cargo shipments, Fay explains, "but on public docks, you have no control. Now we can look at the wood at any time and, if there's a problem, we can set it aside. It's been a huge plus to have our own facility."

The 8-acre Oregon facility is divided into two areas: an upper level, where Dixieline has added a lO-car rail spur and can store up to 8 million bd. ft. of lumber, and a lower level, where the barges are loaded and up to 20 million bd. ft. can be stored.

Barges depart for Long Beach and San Diego about every three weeks with 6.5 million ft. of lumber. Mosr of the wood is for Dixieline's own operations, including 10 San Diego area home centers and a l4-acre National City contractor complex with mill and truss plant. Any remaining space (usually room for about I million ft.) is available to outside companies such as Weyerhaeuser, Hampton and Willamette Industries.

Servicing about 60 rail cars a month on a custom basis for others lets the facility not only scye money, but make money for Dixieline. "It's a tremendous asset," Fay notes, "and a good advantage in the marketplace."