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News & Magazine Articles |
| The Evolution of Inventory Control - Patrick Jenks |
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| As seen in the Magazine Hardwood Matters 2006 - a NHLA publication |
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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 |