Spend time on the road with drivers, as ProSales did recently, and you'll get a new perspective on what's happening with dealers today.
What does your mind's eye see when you imagine your dealership? Perhaps it's the big sign out front, or the neatness of the pallets, or the shine on the showroom floors. But ask someone who drives the trucks that regularly bring goods to your yard, and he's more likely to mention other things: The tightness of the turns in your facility. The width of your lanes. And how long of a wait there is in the left-turn lane before traffic relents and he can roll through the gates.
Spend time on the road with drivers, as ProSales did recently, and you'll get a new perspective on what's happening with dealers today. Haulers for building material distributors arguably see more stores, and have witnessed more changes at those dealers, than any other group in construction supply. LBM logistics managers often regard drivers as sales ambassadors, a status that many drivers relish–even to the point of trying to sell the pallets of chipboard that loaders put on their trailer in winter to help weigh it down on icy morning roads.
The drivers that ProSales accompanied on their routes this summer carried the same demeanor as ship's captains or airline pilots: They commanded that truck and its trailer full of goods, refusing to roll out until they were satisfied the rig was safe. They also see a stark connection between what they do and the fate of their company.
"If my truck is empty, my wallet is empty," declares Randy Henderson, a driver for Huttig Building Products in Washington state. "If that truck is full, I'm bringing food home."
Larry Almaas has driven for Huttig and its predecessor for 27 years. "I enjoy the customers, getting to know them," he says. "I also enjoy the freedom. Once I leave, I'm my own boss."
Credit: Michael Hanson / www.michaelhansonphotography.com / www.auroraselect.com
Partners in Adversity
Half a decade ago, big builders and assorted others dismissed distributors as a needless link in the supply chain. Those were the days when carloads of goods would fly out of the yard as fast as they arrived, and dealers kept storage bins full because so many products were on allocation. Then again, not long before that, some distributors would ship out a product out only when they could fill a truck that was going your way.
Today, builder demand is so low and dealers' need to conserve cash so high that distributors have become the dealer's de facto storage yard. That has been made possible by increases in the number and consistency of routes that distributors serve, as well as the speed with which they can process a request. "The customer has to have absolute predictability and absolute quality" from its distributor in order for that company to succeed, says Paul Rust, district manager of Huttig's facilities in the Pacific Northwest.
Just-in-time product delivery adds to many services that distributors have long done for dealers. They include job-lot packaging, training sales reps, providing product knowledge sessions, drafting engineered wood floor plans, and helping sell products to pro customers. Huttig is even offering a take-off service to its Northwest customers. We've reached the point where, rather than being superfluous, distributors are so closely tied to a dealer's operations that it's getting hard to tell where one link in the supply chain ends and another begins.
At its core, though, distribution is still about the logistics of bringing building materials to your store. And while logistics might not quite be the black art that UPS hails in its ads, it's not all that simple, either.
For one thing, it's very labor-intensive: Up to 60% of the payroll at distributors goes to receiving, storing, picking, loading, and delivering goods. In an ever-shrinking time window, an army of people must sort through a mountain of goods (Do it Best's warehouses hold 67,000 SKUs) to find exactly the right products for your order, put them on a pallet, and encase the goods in shrink wrap. "There's much more emphasis now on product quality," notes Brian Nunes, director of operations at ONEtree Distribution. "Something that used to be able to be sold 10 years ago–where there's nothing really wrong with it but there's a slight dent–doesn't fly anymore."
Once the goods are bundled, the complications continue. Loaders must place pallets and unwrapped items onto a trailer in such a way that: a) the pallets for the first stops are on the outside of the trailer and the last stops are inside; b) there's slightly heavier stuff on the left side of the trailer to counteract the crown of the road; c) the goods are placed on a side where the fork lift driver in a tightly configured dealership can grab them; and d) the overall weight is balanced and legal. No wonder several people interviewed described the process as being like filling in a jigsaw puzzle–but without a picture.
Distribution mixes the old and new in several ways. People rather than machines still do the picking, but computer systems help route them efficiently through the warehouse. Likewise, computerized mapping systems assist dealers in figuring out the most efficient delivery routes, but they're not totally reliable; early versions failed to notice when a road was interrupted by the Puget Sound, for instance. Even today, they don't know which stretches of the Interstate will get backed up at certain times. That's when humans trump machines.
One thing that definitely has changed is the ever-shrinking number of hours distributors need to fulfill an order. In 2007, more than half of BlueLinx's facilities required you reach them before noon in order to get a package the next day. Now 90% of them let you call as late as 5 p.m. As a result, now more than ever, the magic that is distribution takes place after dark.
Thumps in the Night
PROSALES' Craig Webb spent three days riding with drivers. Here's his photographic report.
TRACKING DELIVERIES: A day in a driver's life
PROSALES' Craig Webb spent three days riding with drivers. Here's his photographic report.
600Greg Crossland grew up in a family of truck drivers. He has worked at Wolf Distribution for four years. "This is where I'm happy," he says. "I can't be in an office every day."
600Crossland counts every piece he delivers and checks it against the paperwork that the receiving company must sign, this time at Superior Distribution in Annapolis, Md.
600A metal bar provides leverage for Crossland to tighten straps that hold down the various supplies inside the van. He then will secure the van's curtains with the dozens of belts that are attached to each curtain side.
600After a 15-minute wait, Crossland gets to enter J.F. Johnson Lumber in Annapolis, Md., and begin delivering a load of decking, ceiling tiles, and balusters.
600Nearing the end of his deliveries–with just some vinyl trim left to hand-carry into a store–Crossland picks up blocks of wood used to support previously delivered pallets and stores them in a box so they won't rattle around the truck. Wolf drivers are required to deliver their trailers back to the yard clean and organized.
600Randy Henderson's entire delivery to Lincoln Creek Lumber in Centralia, Wash., consisted of one door slab. Distributors figure a stop costs them money unless they can generate at least $150 gross profit. In this case, Huttig didn't, but it makes up for that loss with bigger deliveries to the customer on other days.
600Henderson arranges some trim in such a way that a crew member at Mountain Lumber in Yelm, Wash., can retrieve it.
600Henderson directs a crew member from Capitol Lumber in Olympia, Wash. Henderson usually watches ESPN while exercising at 3 a.m., in part so he can banter with lumberyard employees on the latest sports news.
600It took nine minutes of waiting in the left-turn lane before Henderson was able to get into the parking lot of Tanglewilde Lumber in Olympia, Wash. He needed just 12 minutes to unload the goods, close up, and head out again.
600Now that Capitol Lumber's goods have been removed, Henderson will have to re-secure all the remaining goods with straps before closing the curtain and moving on.
600Larry Almaas (foreground) joins other Huttig drivers to review the day's route. They check who is to be served, what's to be delivered, and what order those deliveries will occur. Drivers may change the order if they know a customer further down the list has a special need.
600Almaas uses a metal bar to give each tire a light thump. It helps him detect whether the tire is underinflated or could have tread problems.
600It was dry when Almaas left Auburn, but up near Snoqualmie Pass there's rain and some extensive roadwork. He typically travels 400 miles in a day.
600After making a tight left turn into the yard, Almaas has to pull his trailer's heavy curtain all the way open in order for a forklift driver at Marson & Marson Lumber in Wenatchee, Wash., to take off a shipment of I-joists.
600Some distributors believe we'll move to electronic documents, but for now, handling paperwork is a key part of what drivers do. Here Almaas gets the signature acknowledging he delivered goods to Western Materials in Wenatchee, Wash.