Summary
¦ Now could be the ideal time to install new software.
¦ Software customisation is a key factor for timber companies.
¦ The right software can also help relieve legislative burdens.
In the present economic climate, laying out money for a new software system might seem expensive or counter-intuitive, particularly if you are trying to cut costs. But this is a false economy. If the software can demonstrably save you costs elsewhere, it will inevitably pay for itself. And now could be the perfect time to install a new software system, to make ready for when the market does pick up. For timber merchants, it’s all about getting smarter.
Increasingly, timber merchants and suppliers are recognising that they need to make the best use of the tools available – and are pushing software suppliers to do that. The latest version of Kerridge Commercial Systems’ market-leading K8 software, for example, offers full and flexible functionality for timber whether for importers, distributors or merchants, through the supply chain, from purchasing and stock management to selling and delivery management.
Today, the myth that it’s impossible to stock control timber is largely redundant. People do recognise that even if it is difficult, it is achievable with the right software system.
Virtually any system will now deal with basics like sales, stock control, reordering and accounts but it’s the finer details that are differentiating one software supplier from another. The system needs to be able to express the timber in whatever terms the customer understands. But, from a stock control point of view, it also needs to be something that the merchant can use; the two terms are unlikely to be the same. At the same time, you have to be careful you’re not crossing any Trading Standards boundaries – you can’t sell redwood as hardwood, for example, so you need to have constraints within the system to keep things on a level playing field.
Ease of understanding and use is also paramount, with the operator being guided, where necessary, to record the vital information required to complete the task in hand.
Customisation is key
Customisation is another key factor for timber companies. While many companies are classified as ‘timber merchants’, there are also many styles of operation, so the software must be configurable to suit each and every style. It may be that a company is a bulk supplier to other merchants, in which case, how it handles and supplies that timber might be completely different from a merchant with a high street retail presence. Software has to be sufficiently customisable to bring out the correct style of operation that a particular merchant wants to operate.
For example, the temptation might be to capture as much information as possible because that’s what computers do best – store and analyse information. If a particular attribute is limited to a specific group of products, customers, suppliers or branches, then can that attribute be set within the software at the correct level for the business?
Take timber stocked to tally, for example. If customers never ask for a product by tally length and there is no stock management benefit, then the system shouldn’t force all timber products to be tally controlled. The level of detail at which to hold stock can be varied from product-to-product and branch-to-branch. Or it is only necessary to control by tally length those timber products at branches where the customer asks for specific lengths.
Delivery management
Historically there is a lack of understanding that software can handle all these things and people are often pleasantly surprised that it can. Software is also important for controlling efficient delivery management. Transport costs are an ever-increasing percentage of the cost of sale, so any system that helps in the efficient planning and execution of deliveries will help in identifying where delivery costs can be minimised. You need to make sure your vehicles are as full as possible, without being overloaded, when they leave the yard. Timber is a relatively bulky, low-cost item but it is still expensive to move around and anything you can do to make your transport fleet more efficient will be to your benefit.
Having the right software system can also help relieve the legislative burden many companies face. Systems have to be completely integrated. Small tasks, like entering information to meet legislative requirements, often grow into larger ones. So if the information can be obtained from the main software system rather than being dual-maintained separately just for that one task, so much the better.
With software companies increasingly developing their products to reflect the changing needs of their customers, it makes ever more commercial sense for timber merchants to make sure their systems are as up-to-date as possible. So, isn’t it about time you started getting smarter?
