The Process of Improvement

The Wolf Organization has successfully re-engineered its business processes and implemented an ERP system, allowing the company to streamline operations and boost efficiencies up and down the supply chain.

14 MIN READ
From file "025_PSMs" entitled "PSPFwolf.qxd" page 01

From file "025_PSMs" entitled "PSPFwolf.qxd" page 01

Indeed, many of The Lumber Yard’s clients are not aware that Wolf has a cutting-edge computer system—although they know something has changed.

“Their whole approach to developing the relationship became ‘What’s the customer’s need? We’ll design the program around that need,’” says John G. Smith, vice president of production builder Forino Co. in Sinking Spring, Pa. His firm did not change its software, but began submitting its designs and takeoffs electronically. “They’re getting the information as soon as we’re done drawing it,” notes Smith. “If we finish it on a Friday, we don’t have to wait for them to come in and pick it up on Wednesday.”

Smith also notes fewer back orders and delivery errors. “I can certainly say it’s a lot less stressful. There are efficiencies in the fact that there’s no waiting [for deliveries], no having to run for a fill-in, no problem when the framer’s going to be there at 7 o’clock because he knows the lumber is coming at 8 and he’s not going to be sitting around until 10 or 11 waiting for the stuff to come. It’s there. Our subcontractors are happier working for us.”

Suppliers, too, have noticed a change—and not necessarily because of Wolf’s new computer system. Paul Watterson, general manager of engineered lumber for wholesale distributor BlueLinx, says his firm and Wolf work together to come up with more efficient ways of doing business that eventually benefit the end user. Through a vendor-managed inventory program, for example, BlueLinx owns the inventory it keeps on Wolf’s yard and bills the dealer only when product ships to its pro customers. BlueLinx also sells key lengths rather than custom-cut lumber, which means there’s less waste in the lumberyard.

“A lot of what we do to bring efficiencies to the supply chain is through process redesign rather than with technology,” confirms Brown. “Process improvements are not all technology enabled.”

A Coming Renaissance More of them will be in the future, predicts Brown. As builders get bigger—and fewer—they will become more aware of how inefficient the industry’s tried-and-true processes are, he says.

“Today,” says Brown, “we’re kind of in the infancy.” Through the supply chain, he notes, manufacturers have the most sophisticated, most efficient systems and builders have the least. “It hasn’t been important to them,” Brown says. “But as they continue to grow, they will recognize that they need a functional ERP system that wraps their entire enterprise all the way through from inventory to operations and logistics. I think our industry is poised to go through a pretty significant renaissance in the next couple of years.” —Sharon O’Malley is a freelance writer in College Park, Md.

Vital Statistics Company: The Wolf Organization

Year founded: 1843

Headquarters: York, Pa.

Number of locations: 18

Number of employees: 585

2005 gross sales: $175 million

Pro sales percentage: 98 percent

About the Author

Sharon O'Malley

Sharon O'Malley is a freelance writer based in College Park, Md. She has contributed to BUILDER for 20 years.

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