CUSTOMER 



An examination of benefits to the customer will point out why the market is paying 

 for this service and why the impetus for this service has come from the marketplace. 



•There is an appreciable cost difference between unloading packaged and unpackaged 

 lumber--$0 . 17 per M board feet as compared to $2.06 per M board feet. 



The customer saves $1.89 per M board feet. Furthermore, it is estimated that the 

 yard operator realizes an additional $1.30 per M board feet savings in storage and 

 handling costs resulting from: less storage space to handle a given inventory volume 

 through higher stacking; outside storage reducing the need for sheds; no need to band 

 units for delivery. Hence, the yard operator accrues a total savings of around $3.20 

 per M board feet . 



OTHER ADVANTAGES 



Over and above cost considerations, there are the following benefits derived by 

 both the producer and the customer from packaged lumber. These also have cost 

 implications . 



Speed and flexibility of loading . --Shipping personnel at the six sawmills in 

 Montana mentioned that loading with packaged lumber permits convenient shipping of 

 order surges when the stock is already in inventor)^. 



Diamond Lumber Company of Tillamook, Oregon, uses four men to do the work formerly 

 done by 14 men. ^ Efficiencies can be gained where lesser daily volumes are handled. 



Breakage loss reduction . --When lumber is handled as a solid package, there is less 

 chance for breakage or loss of individual pieces throughout the materials handling 

 process . 



Inventory procedure . --Each lumber unit, has a prescribed volume for a given length. 

 This greatly simplifies the inventory process. Also, while permitting a systematic 

 storage method, it allows a degree of flexibility in that units can be stored where 

 convenient with the assurance that the volume will remain constant. 



A yard operator can maintain his inventor\' more easily because the units are 

 marked with number of pieces, grade, and species. When a unit is opened up or loaded 

 out, the operator is reminded how that particular item is stocked in relation to his 

 desired volume; e.g., he is reminded as to whether or not he should order more stock. 



Order assembly . --Order assembly is simplified in that pieces of lumber do not have 

 to be tallied individually. This is particularly advantageous when sales are made 

 using unit volumes for lot sizes. 



Protection in storage --The primary demand for wrapped lumber stems from the need 

 to preserve quality during storage through inclement weather. One study shows that 

 the percent of studs falling out of grade during storage because of bow and crook can 

 be as low as 4.2 percent in packaged units as compared to 12.5 percent uncovered.*^ 



^Forest Industries. 3 man packaging unit--l MM a day. Portland, Oregon, July 1964 

 ^Crow's Digest. Exposure tests evaluate lumber wraps. Portland, Oregon. 

 October 1967. 



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