FOSTERING STRONG RELATIONSHIPS WITH LOGISTICS PROVIDERS IS PIVOTAL IN COMPLETING THE BUSINESS SUCCESS PUZZLE

One thing all of us in the hardwood industry can count on is change. Except for the NHLA grades, every-thing is always in a constant state of change. How you identify, accept, and adapt to the change makes all the difference.

One topic not commonly discussed is logistics. However, it is one of the four key areas our businesses depend upon, and we need it to survive. We must transport logs/lumber to our facilities. We must manufacture and sell lumber from said raw materials. Then we must get that product to our customers, whether across the street, in North America, or worldwide. Enter the logistics puzzle.

Domestically, transportation and logistics have had a dramatic change to accommodate the just-in-time inventory desire of customers. What once were full truckloads of a single thickness, grade, and species have morphed into highly mixed truckloads with specific delivery dates, pushing the inventory burden back to the sawmills and concentration yards. Meeting these delivery needs re-quires a network of trucking firms and strong relationships who can provide the right equipment, well-maintained trucks, the correct tarps, well-insured, and quality and safety-conscious drivers.

Similar to creating critical relationships with customers, equipment suppliers, mechanics, and loggers to keep your operation running smoothly, a reliable trucking outfit goes a long way to servicing your customer base successfully. It should garner the same strategic plan.

We have found most of our success does not come from the low-cost trucker but from the trucker who shows up on time and with the correct equipment to haul our lumber on relatively short notice.
That trucker is an extension of our brand. The lumber needs to arrive clean, dry, and on time. The delivery process is your customer’s first impression of your business! A substandard result can make procuring the next order difficult or generate potentially costly lumber claims.

Looking at our industry from a macro sense, I question if we don’t pay enough attention to the “last mile” providers that are a vital link to our customer relationships. Should we as an industry band together and help these companies define industry-wide standard operating procedures for transporting kiln-dried hardwoods and similar products? Every time I see a Central Oregon Trucking Company truck headed to the East Coast or a Roehl Trucking Company taking Alder to Wisconsin, I think, could that guy benefit from being able to haul a load of White Oak to LA or bring back a load of Walnut to Portland? Even if you are helping a competitor deliver a load of lumber in a macro sense, the bigger issue is we are keeping hardwood lumber relevant by assisting one another in coordinating the efficient and proper transportation of hardwood products.

I am reviewing the growth in Mexico. What makes lumber more expensive to ship there? One thing is having to unload at the border at a freight forwarder, then the forwarder reloading a Mexican truck to cross the border and deliver the goods in country.

At Cascade, we are just starting to deliver lumber to our customers on the same truck, avoiding these charges and delays. Yes, I am divulging a slight competitive advantage. But, if a lot of companies could figure this out, would the industry benefit by delivering lumber at competitive prices to keep solid hardwood relevant in Mexico? You bet.

Internationally, the challenges loom larger than the space in this column permits. Forwarders provide invaluable services in moving our goods around the world. Without a solid forwarder, customs delays, demurrage charges, and distressed inventory thousands of miles away can all increase your logistics costs in a hurry.

Innovative solutions that the right forwarder can offer include ware-housing options, vessel tracking options, and repeatable document preparation, all of which help to minimize logistics costs. Having a credit-qualified, trustworthy customer where payments are not required in advance of the document’s release also helps. Relationships matter.

Relationships and networking regularly come up as part of complex solutions to new challenges and changes in our industry. One of the most significant benefits of NHLA membership is the networking opportunities created at the Annual Convention and the immediate connection of NHLA membership when meeting someone new. My suggestion is to expand your horizons at these networking events. The logistics companies provide us with a service that is often taken for granted. We are guilty like any other company here. Cascade now sees how logistics firms are critical to our success as business improves. We plan to strengthen these relationships and cultivate new ones in 2024 to serve our customers better.

Thank you for taking the time to read my article. I hope you, your family, and your business are all well.

Take care,

Jon Syre, NHLA Chairman | Cascade Hardwood