I nd ustry-specific software isntt the only solution

j-lven rHE vEARS, I have shared \-f your pain. struggles and sleepless nights with-dare I say it?-IS (Information System) or, as it is sometimes called, IT (Information Technology). I've never liked either of those descriptions. Let's move to a much broader description: ERP, or Enterprise Resource PIanni ng.

Why is it that we spend countless labor hours on budget meetings, integration methodologies. maintenance. inappropriate functionality, and the inflexibility to adapt to changing business needs? What frustrates me even more is that we allow this IT to rule our business lives with substandard performance, only to be assured, "Don't worry, your software provider will have it fixed in the next enhancement release."

I contend that LBM industry-specific solutions don't have to be your only options. A SKU is a SKU is a SKU. You're telling me that the barcode on that Victoria's Secret shelf is different from the barcode on a gallon of paint at your store? I guarantee you that walking down Fifth Avenue and visiting the Ralph Lauren store or Gucci store, that they don't have the ERP struggles that our industry does.

You don't need to have exponential budgets, either. There are solutions outside our industry that offer these ancillary benefits for us to run our day-to-day operations. They are just as efficient and also effective for our internal and external customer.

Let's look at the facts. Compare the growth of our industry in terms of dealers, market share, revenue and profitability to that of Home Depot,

Lowe's and Menards. They, like most Fortune 500 up to 5000 companies, use outside ERP systems.

The experts at your local "geek shop" have probably never even heard of your system. If you search Monster or any of the other employment networks for IT or ERP jobs that relate to our industry's specific software package, you won't find a huge pool of qualified prospects.

Why is it that some co-ops use systems like SAP, but offer their dealers different ERP solutions? I guess they never read Harvard professor Michael Porter's work on value chain and the importance of transparency to the customer in order to bring value to all stakeholders. The basis of his thesis is that Enterprise Resource Planning facilitates improvement to a company's value chain, thus generating significant competitive advantage.

ERP is the intesration of a busi- ness software solution into a company's activities and strategy. The theoretical motivation behind implementing an ERP project is to increase efficiency, thereby reducing costs and increasing profitability and customer satisfaction. In addition, there should be increased efficiencies around the supply chain, consolidation of information, and an overall business improvement, which gives those who use ERP an advantage over their competitors.

According to Porter, a company's ERP project can be assessed by the level of improvement in terms of productivity and customer satisfaction. The analysis of the data presented by ROI figures will clearly show that ERP systems provide a significant benefit to the value chain, increasing competitive advantage within an industry.

Companies like SAP and Oracle have been leaders in creating value efficiently and effectively by adapting quickly to business changes for their clients.

To better compete in the 2lst Century, dealers may want to consider more than just industry-specific ERP packages. Like most owners who grew up in this business, I have sawdust in my veins. I love the independent lumber industry and want to see all of us succeed.

- The former president of LumberJack Building Centers, Algonac, Mi., where he spent 22 years, Gordon Birgbauer is now a lumber distribution consultant, as president of AIIS/MFP, Algonac. He can be reac hed at gbirgbauer3 @ gmail.com.