Jun 8 2007 7:56AM | Permalink | Email this | Comments (0) |
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I just returned from the Pacific Coast Builders’ Conference and had a chance to spend some time with Rod McKenzie of BlueLinx.  BlueLinx is a member of our Builder Partnerships team so we obviously discussed some pertinent business but we also talked about some of the changes that have occurred in the supply chain.  Over the past few years we have seen the “big boxes” take over from the smaller lumber yards and, of course there has been consolidation within the supply chain.  We have also heard talk about the major, national builders wanting to “shorten” the supply chain by entering into the distribution business or buying direct from the manufacturer, etc.

Well, I don’t have a crystal ball but it is safe to say that the building material supply chain is in for some changes and alterations and it will be interesting to watch and see what happen.

While I am on this subject I thought I would share a personal experience that I recently had involving the supply chain.  Yesterday one of my garage door openers broke and I determined that a small part had failed.  I called several garage door service firms to see if I could get the part and the answer was “no” because they are a service company and they would have to come out to my house and install the needed part.  This would have cost me a minimum of $109.00.  So I went to two “big box” stores in my area which proved to be fruitless because they don’t deal in parts as they just sell the whole garage door opener.  This was just as well because if they had the part it would most likely come in a package of twelve.  So I went to my last resort, the small, independent hardware store and low and behold, the owner took me into the back room and rummaged through some boxes and proudly came up with exactly what I needed for only $21.00!!

So what is my point with all of this?  It is simple, in the end the real winners in the supply chain will be those who provide real value and service to all that they call customers.  And that all members of the supply chain need to constantly evaluate the ever-changing market and their respective offering to all involved in the supply chain to ensure that they are providing real value.