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Boost Margins in Value-Added Operations

4/26/2017

As a result of the improving housing market, savvy dealers are once again turning to turnkey, value-added services such as installed sales and manufacturing to ease the burden on builders and contractors while providing an edge over the competition. In the most recent ProSales 100 survey, 59 percent of the dealers in the country indicated they offer some level of manufacturing, with the leading components being pre-hung doors, floor trusses, and roof trusses1Boost Margins in Value-Added Operations

"I’m seeing more and more dealers interested in growing organically through services that are a natural extension of their business" says Rick Schumacher, editor and publisher, LBM Journal. "And manufacturing is a very natural extension for a lot of dealers."

Turnkey services are essential for serving local pros in the Omaha, Neb., area, according to Joel Russell, vice president and COO, Millard Lumber, which operates three manufacturing and distribution centers. "The unemployment rate is phenomenally low in our state, and it’s hard to find skilled labor in the construction trade. So we offer whole turnkey packages including labor for a lump-sum price. We panelize walls and floors, we do roof trusses, and we install it in the field."

Proof of Performance
Dealers around the country have been experiencing the benefits of value-added manufacturing programs in combination with smart, efficient technology. 

How to leverage business software for manufacturing efficiency and customer loyaltyMillard Lumber, for example, relies on Epicor BisTrack™ software to provide business data across the company, which helps the turnkey projects team gain efficiencies, improve profitability, and enhance customer service. They’ve seen the time it takes to report on job costing reduced from a couple days to mere minutes, allowing managers to continuously monitor project profitability rather than waiting until the end of a project.

Annandale Millwork & Allied Systems, a Winchester, Va.-based manufacturer and distributor of interior and exterior doors, windows, trim, custom architectural millwork, and framing components, turned to BisTrack software to centralize manufacturing and order management, as well as improve communication, provide more accurate job costing, ensure faster response times, and eliminate redundant data entry. "We found that BisTrack software had enough flexibility to adapt to each area of the business," says Jennifer Leonard, Annandale CFO.

Sharing Insights with Customers
"Dealers are looking at the future and saying to builders, 'We want you to succeed and we know we’ll succeed when you do. And technology is the answer,'" says Schumacher.

To read the full "Manufacturing Competitive Advantage: How to Leverage ERP Technology for Manufacturing Efficiency and Customer Loyalty" white paper, click here.

1Webb, Craig, “The 2016 ProSales 100,” ProSales Magazine, May 2016, page 64.

Posted by Graham Rigby, Director, LBM Sales, Epicor Software


 

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