News & Magazine Articles

The Evolution of Inventory Control - Patrick Jenks

As seen in the Magazine Hardwood Matters 2006 - a NHLA publication

Last week I spoke with a gentleman who began his career as a lumberman over seventy years ago.  From the age of fifteen he learned everything about the lumber business from his father and grandfather.  I knew then that speaking to me was a man with in-depth experience and a keen insight of his trade.  I would be grateful to have only a bit of his knowledge.  While our discussions were primarily centered on fishing I asked him about the way his family managed their Hardwood Lumber operation and how they kept up with the inventory on their yard, prior to the “technology” era. 

After a while I began to understand that not long ago the word inventory control really meant HARD WORK!  Most all inventories were recorded with pencil and paper.  This method required multiple people working in the yard to keep manual records relating to log usage, lumber production and the overwhelming prep work needed to process a Green board to it’s final dried status sold to customers.  All day long an endless stream of information would be delivered to office personnel who would laboriously update inventory listings by the many different species, thicknesses and grades necessary.  I was told that “Back Then” the industry didn’t have as many classifications in grades and quantities as seen in today’s Hardwood industry.  Even with simpler classifications inventory control was still very time consuming and costly if managed the right way. 

            Fortunately for myself, this stately Hardwood gentleman was also aware how the introduction of technology has benefited the Hardwood industry over the past thirty years.  He was confident that these changes had a very positive impact on the industry with the invention of the computer, automated kilns and bigger and better production equipment. 

I could see before my eyes the time capsule that embodied this wise gentleman.  He was filled with experiences and knowledge gained through the years and also aware of the many advances in today’s fast paced world.  The world has changed a lot in today’s Hardwood industry.” he stated, as I explained to him my personal specialty was inventory control. 

Most companies today have implemented some type of inventory control system in the Hardwood industry.  Many of these systems allow a Hardwood company to manage their valuable Hardwood inventory by many attributes found in our industry.  For example a salesperson can today, with a click of a mouse or the touch of a screen, see instantly how much Red Oak, 4/4, FAS, Kiln dried, sixteen foot lengths of lumber inventory is for sale.  This can be done while talking to a customer on the other side of the world and as easily and fast as a snap of a finger. Boy, how things have changed!  Management, Sales, Shipping and everyone in Accounting can now quickly and easily see most all activities as they occur regarding lumber inventory shipments and overall production.  With today’s technology, information that is gathered out in the mill area is not recorded with pen and paper but many times collected with the use of hand held computers. 

            Companies today can take advantage of the many systems and approaches available.  Many of these systems offer a solution that has been specifically designed for the Hardwood industry.  Hardwood operations that utilize office and hand held based systems can and have taken advantage of other very helpful inventory control practices.

            Some of these practices include implementing bar code labels with their bundle tags and producing a real-time wireless environment to promote the rapid and accurate transfer of information from the plant to the office.  Today’s world offers sales and management the ability to not only receive emails and voice messages on their cell phones but now they can literally search their company’s inventory just like a salesperson at their desk and yes I said, with their phones

            Only a fortuneteller with a crystal ball can dictate the future of Hardwood inventory control practices.  I am not a fortuneteller but being an inventory control specialist I can envision what is in the near future for the industry.  It’s fairly obvious that the streamlining of information through wireless technology will continue to grow over the next few years.  Wireless printers, wireless hand helds and wireless telephone services are all pressing the technology “hot” button to provide a real-time environment in every business sector.  Again, this is what’s hot now but it will be sometime before it’s totally accepted by all business segments, including our industry. 

            RFID (Radio Frequency Identification) is just now being introduced and will undoubtedly play a major role in the future with all inventory control systems.  Major companies have gotten on the RFID wagon.  Believe it or not it’s coming to your industry as well.  Any technology that eliminates the time it takes to manually record and verify lumber in your operation is major.   With RFID you can know where everything is all the time and it’s not limited to lumber inventory.  Fixed assets like forklifts and machinery can also be tracked and all this is accomplished without spending an enormous amount of time as in days past.  RFID technology integrated with an in-depth lumber inventory system can show efficiency levels within most every segment of your mill.  This technology has many benefits other than asset tracking which will allow your company to be more productive and profitable.  And if there is anything I have come to understand it is that time is most definitely money and money, well I don’t have to explain that. 

The future looks bright for inventory control in the Hardwood industry with the introduction of new technology.  This technology empowers companies to become more productive, profitable and organized by utilizing it’s many new and exciting tools, which are available and ready for your use.

Patrick Jenks

President

Forestry Systems, Inc.

1-800-868-2559