Weyerhaeuser's new nationwide (omputer network promises to reshape company plicy & marketing

Plans to install one of the most comprehensive management information systems yet devised by American industry has been revealed by the wood products division of Weyerhaeuser Company.

The $2r/z million General Electric system when fully implemented is expected to substantially reshape vital manufacturing and marketing procedures of the wood products producer. Preliminary planning is already underway and equipment instal- office personnel have adequate information on which to base decisions," .he said. "There are too many question marks today in relation to profitability of specific product lines and markets."

He cited as a prime problem the need for more useful information on the profitability of specific products. He also pointed to the need for data on the profitability to the company of specific customers. He said other investigation is needed to determine

A customer file will contain permanent information such as invoicing point, rail routings, industrial classification, credit Iimit, current account status and other information. This information can be made available on demand to salesmen in the field.

All products manufactured by Weyerhaeuser are to be maintained in a mill item file. Included are complete item descriptions-width,.length, thickness, grade and other pertinent data-as well as a record of stock on hand, orders on hand, projected production and projected sales.

A similar item file is set for each distribution center. with additional information on inventory and orders in transit. Both files will contain current pricing information in terms of selling prices and handling costs.

How It Works

From an operational standpointo all information stored in the system's disc files can be recalled on relatively short notice by either headquarters or field personnel. Inventory status, current sales figures and mill schedules can be reported in" minutes.

The real-time element of the svstem will permit files to be perpetually updated as information on sales and production are entered into the system. This feature as.sures the dissemination of current information to management rather than days or weeks-old historical data.

IIISPIAYED lation, to begin in the last quarter of 1964, will be completed in 1965. o'It has become of vital concern to us that our field managers as well as home mills, distribution centers and sales offices. Seen are George H. Weyerhaeuser (lefil, executive vice president for ryood products and timberlands, and Lowry Wyatt, V.P., marketing, wood products division. the relative advantages of specific marketing techniques such as direct selling'by the carload, for example, as opposed to use of distribution centers. ooMaster edit" has been designed into the system to assist managers in making decisions. The possibility of oversale of an item is reduced for example, since the system is keyed to notice short supplies of stock.

Weyerhaeuser management has set its sights on improved profitability and customer service through'a complete overhaul of its management information procedures. Targeted for immediate attention are a redefinition of markets, a reorganization of production practices, and an improvement in the flow of information to decision centers.

George H. Weyerhaeuser, executive vice presiden! wood products and timberlands, in making the announcement pointed to the vexing problem of communicating vital management information to the field.

Hand-in-hand with marketing renovation will be a gradual turnabout of manufacturing procedure. Manufacturing will be more finely tuned to the needs of the market and permit utilization of a selective marketing approach through the capa'bility of rapid data processing.

The new \feyerhaeuser system has been designed for automatic, high-speed operation and to automatically store messges and resend information. Commercial telephone and teletype lines will inter-connect the company's 62 distribution centers in .{,8 states.

Other features include fast customer credit checks, perpetual updating of inventory records on orders received and automatic order acknowledgment.

All production scheduling is to be generated by the management information system. Weekly order inventory reports and daily exception reports will be made available to key production managers.

Distribution center and mill invoicing for direct sales is scheduled to be produced centrally by the computer complex, eliminating hand invoicing in the field and individual mill invoicing.

The new system will permit Weyerhaeuser to make better business decisions which should result in better customer service and improved profitability for the wood products division.

Douglas Fir Plywood Association has outgrown its name

The industry we represent has undergone some big changes in recent ycars. Our old name no longer fits.

Instead of rnaking plywood only from Douglas fir-and only on the West Coast-the industry now nrakcs a widc range of products from some 20 diflerent specics of wood lrnd in pl:rnts in many parts of tl-re cxxtntry.

The nt'w name lt'flccts our mcmbers' growth ancl plogt'ess.

Ert.n tlrouglt tlrt, Itrrme is ncw. ,\'ou can st.ill spc:cify Dl'PA plyrvood. 'l'hese ilrnili:rr lcttt'rs still stand for rlualit.v in 1;lyrvood certified by thc lrssociation and you'll continuc to st't' them in our grade trndemarks. Instead of Douglas Fir Plywood Association, though, the'y now stand fol Division For Product Approval. And we're still headquarters for all kinds of pl-ywood information. Wlitc us at 'facoma. Wash. 98401.