Winning Hand

Industry pundits weigh in on Harvard's recent LBM supply channel study and offer a glimpse into how dealers can stack the deck in their favor to ensure viability and profitability in the future.

12 MIN READ
From file "064_pss" entitled "MMwinhnd.qxd" page 01

From file "064_pss" entitled "MMwinhnd.qxd" page 01

In fact, Baker says, the shifting paradigm for serving builders creates more niches, such as installed sales, for dealers of all sizes and markets to increase sales and revenue. “It’s not an issue of serving either the big builders or small contractors,” he says. “It’s a matter of where to invest your money.” —Rich Binsacca is a contributing editor for PROSALES.

EDITOR’S NOTE: To obtain a free copy of the Residential Supply Chain in Transition report from the Joint Center for Housing Studies at Harvard University, visit www.jchs.harvard.edu/ publications/industrystudies/index.html.

Service Trends The largest home builders are demanding more and different “premium” services and manufacturing capabilities from their dealers, forcing suppliers to consider sacrificing free services that such builders find unnecessary.

SOURCE: HARVARD UNIVERSITY BUILDING PRODUCTS DISTRIBUTION STUDY, RESIDENTIAL SUPPLY CHAIN IN TRANSITION (W04-3), JOINT CENTER FOR HOUSING STUIDES AT HARVARD UNIVERSITY, FEB. 2004.

Getting Leaner Large pro dealers are slowly increasing their use of bar codes and POS scanners to achieve more efficient inventory management, an initial step to integrated, real-time solutions along the entire supply chain that many consumer retailers are already engaging.

SOURCE: HARVARD UNIVERSITY BUILDING PRODUCTS DISTRIBUTION STUDY, RESIDENTIAL SUPPLY CHAIN IN TRANSITION (W04-3), JOINT CENTER FOR HOUSING STUIDES AT HARVARD UNIVERSITY, FEB. 2004.

Shifting Base Large-volume home builders are not only increasing their share of housing starts and closings, but represent a growing percentage of a dealer’s—especially a large dealer’s—revenue.

SOURCE: HARVARD UNIVERSITY BUILDING PRODUCTS DISTRIBUTION STUDY, RESIDENTIAL SUPPLY CHAIN IN TRANSITION (W04-3), JOINT CENTER FOR HOUSING STUIDES AT HARVARD UNIVERSITY, FEB. 2004.

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