Slow but steady

By George A. MacConnell Senior Vice President, Distribution and Specialty Operations Georgia-Pacifi c Corporation

T Hg BEST phrase to describe the I building products industry outlook for 1992 may be "slow but steady," particularly after the roller coaster ride we took in 1991. With uncertainty on commodity prices and the downtum in housing starts in the first quarter this year, our industry braced itself for the worst. Fortunately, that first quarter was the bottom and the following quarters saw modest increases in new housing and renewed remodeling activity.

We're still on that slow. steadv climb back, and we're not anticipatin! any significant drops in the near fu- ture. With an expected gradual recovery in housing starts predicted for 1992, perhaps to a level of 1.2 million, retailers can see some relief in sight. Consumer confidence to undertake major remodeling activities is up as well. With today's "buyer's market" in real estate. homeowners needto make their aging homes attractive to increasingly finicky house shoppers. This bodes well for both d-i-y and remodeler-oriented yards and home centers. o Just-in-time delivery programs help control inventory costs for retailers. Can your supplier deliver when you need it and in the quantities you need?

How can a retailer succeed in the slow, steady climb in '92? By getting suppliers directly involved in his business as a key partner. Retailers should challenge their best suppliers to help solve their business problemsto come up with ideas that will increase sales and profits. This, however, cannot be a one-way street. Retailers and their employees must be willing to work hard and be open with suppliers. They can'tjust put key vendors under the microscope, but must scrutinize their sense of partnership with each other.

Here are some partnership keystones to work on in'92:.

. Is communication a two-way street? Are needs and demands addressed? Are you familiar with the services your supplier offers?

'Does your supplier have control over resources from which products are made? Is his supply dependable and timely?

' Look at how electronic technology is changing the way we do business. EDI and UPC are fast becoming part of the building products landscape. Can your supplier be a part of the new technology?

. Retailers are looking at manufacturers and suppliers to help sell products better and faster. In-store merchandising programs, displays and product training are providing retailers with differential advantages. What can your supplier offer?

' More and more suppliers are being called in to develop and manage complete programs for specific product categories.