Monday, 14 December 2015 18:29

Do you think value or price?

When you buy lumber do you focus more on the cost of the load or the value the lumber can bring you?  We find that when manufacturers focus only on the cost of the lumber they may be missing a chance to fully understand how better lumber can improve their prduction efficiency.

We all know that we in the hardwood lumber the industry’s grade book guides us on what type of lumber can be classified in each grade category. However, within each grade there is a relatively large spectrum of value that can be derived based on each company’s needs. Another way to look at it is how many useable parts you can manufacture from each board so your product material costs stay as low as possible.

American Lumber bundlesWhen you gain higher lumber yields from the lumber you use, you can produce more products and create less waste. That saves you money!

So how can you get more valuable from your hardwood lumber supplier? Here are a few tips to keep in mind:

Seek a sales team that learns your production needs inside and out.

Find a hardwood lumber sales person who is just as interested as you are in how you produce your products, and what type and quantities of lumber you use. When conversations with your supplier evolve around how their lumber products can help solve more of your production challenges, you open the way towards finding new solutions to your challenges as well as exciting opportunities to improve.

Focus your lumber conversations away from the price you pay to the value you receive.

Shift your conversations from grade and cost to how the lumber will perform in your manufacturing process.

Many times, taking a broader approach and including different factors (such as total usable fiber, supply reliability, delivery schedules, inventory costs, waste removal and labor handling costs) can determine more precisely the overall impact the lumber you use will have on your company.

Create a value model that works for your business.

It really is more than just the cost per board foot. By continually emphasizing the overall value a lumber product can bring to your manufacturing process, your supplier demonstrates a commitment to helping you succeed. If they do this, they offer far greater benefits to your company than a simple reduction in lumber pricing.

American Lumber likes to help customers increase the value of the hardwood lumber the use. We help customers by developing custom grades just for their business so they can receive better lumber.

If you would like to know more contact us today. We are here to help you succeed.

Tony Cimorelli
American Lumber
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Last modified on Monday, 14 December 2015 18:57

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