NAWLA’S THINKING AHEAD

By Steven Rustja

What doesn’t kill your business makes it stronger

NAWLA had just wrapped up its Leadership Summit early last March when the significance of the COVID19 outbreak slammed home. Attendees had no idea then, but that would be the last in-person industry gathering for the foreseeable future.

The mood in Palm Desert, Ca., was light-hearted, but the return trip from the event was much more solemn. Many of us arrived home to empty store shelves and talk of lockdowns, not knowing when we’d be able to buy our next roll of toilet paper—let alone how our businesses would fare in the emerging public health crisis.

The first line of defense at Weston Forest, and no doubt many other firms, was to preserve cash and protect the business. Not knowing what the future held, we scaled back purchases, unloaded existing inventory, and collected on receivables… then waited to see what was coming next.

It was good news—at least for our industry: Weston and its peers were fortunate to be among the businesses labeled as “essential.” We never shut down, even for a day. While the pandemic kept some pockets of the economy in a stranglehold, lumber was one area that actually flourished in the so-called “K” recovery that followed. In fact, we were busier than ever! Construction was booming. People had both the time and—thanks to cash stimulus payments and low interest rates—the money to build, renovate, and remodel in 2020. The lumber industry, in turn, clocked one of its best performances on record.

While we were grateful to have a life preserver in the middle of the “storm,” the executive team at Weston also recognized an opportunity to systematically improve our company and make it even better and stronger than before.

Necessity Breeds Invention

While Weston thankfully has been able to keep the doors open and the lights on during the pandemic, it was clear from the start of the crisis that operations couldn’t continue on as before. The world was changed, so we had to change how we conducted business, too—quite quickly and quite radically. The new realities of operating during the COVID-19 crisis meant redesigning all of our systems: from the way the order system works to the way we hold meetings down to the way the finance team handles invoice processing when working from house.

As it were, this need to reinvent the wheel was the push our company needed to implement processes and technologies that were already on our corporate “to-do” list but that hadn’t seen any real momentum up until that point. Starting with Zoom.

Zoom Boom

From a hardware perspective, Weston was ready for Zoom pre-crisis. The company renovated our office space a couple of years ago. Some of the inspiration came from NAWLA—which was already well-versed in the virtual meetings platform, although many people had never even heard of it. Because we work closely with the organization, a handful of our offices were already set up for Zoom. We added the cameras to all executive offices as part of the

A Special Series from North American Wholesale Lumber Association

About NAWLA

North American Wholesale Lumber Association is the association that delivers unparalleled access to relationships and resources that improve business strategy and performance through sales growth, cost savings, and operational efficiencies for wholesalers and manufacturers of forest products and other building materials that conduct business in North America. Learn how NAWLA can help your business at nawla.org.

renovation project, although they sat mostly dormant for a year or two. When the pandemic arrived, everyone suddenly needed another way to communicate with staff. We quickly dusted off the Zoom equipment and registered for and added new accounts.

The forum became a critical resource, as we set up daily online meetings with all salespeople at our business units. This seemed an impossibility before, with people arriving at work at various times during the morning, but it became a necessity. We also scheduled daily inter-company video updates across the entire organization. Managers now spend 10-15 minutes hashing out issues they’re facing that day. While initially a response to COVID, what these meetings have done is provide better information and narrowed the culture gap between the separate businesses. It can be difficult to develop a relationship with someone who works at another location, but the video calls have helped create unity and camaraderie despite distance.

Additionally, we used Zoom as a way to regularly check in on individual employees to see how they were coping and even relied heavily on the medium to interview and onboard new hires.

More Moves

There were other initiatives, too, that finally got kicked into high gear with the pandemic. Paperless transactions, for example, was something that we had long wanted to pursue; but now it had to get done. When we found that customers were reluctant to touch delivery slips and pens handled by someone else, we made bill of lading deliveries paperless. We also changed our new order processing flow and customer pick-up procedure.

In another major shift, Weston figured out how to conduct the lion’s share of our business offsite. Although remote work is far from new, it’s certainly come a long way since last year. The inside joke used to be, especially for sales associates, a Friday afternoon “working from home” was roughly translated as “playing golf.” Now, the perception has gone from suspecting that employees are not working as hard to knowing that they’re working harder than ever. It’s no longer something to be frowned upon. In fact, it’s something that we’re likely going to continue forever, along with the other changes that have helped to address the crisis at hand but simultaneously have allowed us to protect employees and customers while enhancing our level of service.

People Power

Another one of those steps entailed strengthening our employee base. While the pandemic unfortunately left many people jobless, it created a vast pool of potential hires. Weston used this opportunity to add some top-quality talent. From sales and operations people to labor and finance people, we backfilled all parts of the organization to upgrade our workforce.

Weston, which already had a culture of including employees in the decision-making process, took that concept a step further in light of COVID. Building on its history of periodic town hall meetings and roundtable discussions, we routinely polled staff on how they were doing, how the company was doing, and how it could do better. Not only did employee surveys and other outreach help alleviate pandemic fears, it added to the drive to elevate the company to a higher level.

Have a Plan

Truth be told, Weston was humming like a well-oiled machine even before COVID; but even if you think you’ve got something operating fairly well, you need to have plans in place: contingency plans, disaster recovery plans.

Be Prepared

If you’re caught unprepared, at least be proactive. Weston was surveying the COVID situation and kicking around ideas long before an official state of emergency was declared, in what even some of our own people perceived as an overreaction at the time. Recognizing and reacting to the severity of the situation early helped us tremendously, however, as did our readiness to pivot.

We’ve proven to ourselves that the systems that we put in place not only allowed us to continue our business, but to thrive and better it.

Going forward, we’re working on a Start-Stop-Continue Plan, to consider what activities we’ll initiate or keep in place as the economy reopens and what activities we’ll no longer need once life returns to normal. We’re also drafting a plan for pandemic protocols. Now that we’ve lived through one, we’re documenting that so—whether it’s a year from now or 100 years from now—if this ever happens again, there’s a historical reference to some of the steps that whoever is running the company will need to take.

– Steven Rustja is vice president- trading for Weston Forest Products, Mississauga, Ont. (westonforest.com).

John Hedges, ex-Jewett-Cameron

Co., has joined the outside sales team at Huttig Building Products,

Portland, Or., serving metro

Portland, southwest Washington, and Columbia River Gorge. Pat Lynch has been promoted to

VP of sales for Timber Products,

Springfi eld, Or. Terry Rasmussen is new to sales at Elk Creek Forest Products,

McMinnville, Or. Paul Cheatham will retire on April 29 from Western Wood Preserving Co.,

Sumner, Wa., after 24 years with the company and more than 48 years in the industry. Eyan Lewis, ex-UFP, has rejoined

Huttig Building Products, Tigard,

Or., in outside sales. Sean Seymour, ex-MiTek, is a new building materials specialist at

Ganahl Lumber, Buena Park, Ca. Britton Bloodworth, ex-Weyerhaeuser, is now with International Wood

Products, Folsom, Ca., as business development mgr. Jim Schumacher, ex-Parr Lumber, is now sales mgr. for Roof Truss

Supply, Woodinville, Wa. Rick Kitashima, ex-KDL Enterprises, has joined OrePac Building

Products, Tacoma, Wa., as Tyvek sales specialist. Patrick Slapper is a new Tyvek specialist in

Wilsonville, Or. Chanel Donaldson is now sales coordinator for Parr Lumber Co.,

Vancouver, Wa. Roger Fossett has been appointed division commodity procurement mgr. for Boise Cascade, Boise,

Id. He takes over May 1 with the retirement of Dave Crowson. Tim

Jaeger has been named regional commodity procurement mgr. at the

Lake Oswego, Or., offi ce, eff ective with the May 1 retirement of Jack

Donovan. Jeff Olson, ex-AZEK, has joined

True Value Co., Chicago, Il., as chief fi nancial offi cer. He succeeds

Deb O’Connor, who is leaving to pursue other interests. Josh Ratcliff is now division mgr. of forest products for Do it Best Corp.,

Fort Wayne, In. Bobbi Krayer is a new member conversion specialist. James Woolacott has been named controller for California Cascade

Building Materials, Sacramento, Ca. Josh Martin has been promoted to national sales mgr.-lumber channel for SPAX fastener manufacturer

Altenloh, Brinck & Co. US, Bryan,

Oh. William Batts III, president, CEO and co-founder of Specrail, has retired from Porcelen LLC/Specrail,

Hamden, Ct., after 48 years in the industry. Jeffrey T. Pierson succeeds him as president/CEO. Joe Simms has been promoted to chief diversity offi cer for Stanley Black &

Decker, New Britain, Ct. Mark Tibbetts has joined APA–The

Engineered Wood Association,

Tacoma, Wa., to begin the transition to president on July 1, when Ed

Elias will retire. Iris Audit is the new bookkeeper for

Mungus-Fungus Forest Products, report co-owners Hugh Mungus and Freddy Fungus.

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Orgill Inc. enjoyed huge attendance and record sales at its Spring Online Buying Event, while rolling out a series of enhancements that made the twoweek virtual event more intuitive and user-friendly for both exhibitors and retailers.

“We are pleased with customers’ response to our second Online Buying Event, which was highly attended and drove record sales. We learned a lot from our fi rst event last fall and our team and vendors incorporated some great improvements into this event designed to make ‘working the show’ as easy and effi cient as possible,” said Boyden Moore, president and CEO.

Preliminary results for the show, which took place Feb. 8-19, indicate that more than 9,200 retailers attended the Spring Online Buying Event, and sales during the buying window topped those posted during the fall show and set another new record for Orgill Markets. In all, nearly 1,000 vendors participated in the event off ering retailers special buys, unveiling new products and helping retailers prepare for the upcoming selling season.

“I think that the success of this event is a refl ection of not only the strength of the industry right now, but also that retailers are more and more comfortable doing business in this new online environment,” Moore says. “Last year, we made the announcement that we were shifting our approach to Dealer Markets and that online events would become an integral part of our plans for shows going forward, even when we can gather in person. The results of this event clearly suggest that this is the right path.”

Some of the enhancements made to the Spring Online Buying Event included features such as more streamlined communication options for attendees to interact with vendors, adding functionality that allowed retailers with multiple stores to process orders more easily, and enhanced dropship purchase capabilities.

Another new feature added for attendees at the Spring Online Buying Event was the ability to run an EDGE Buying Report. The report allows users to easily compare their purchase history alongside all the programs and specials available during the market to help them more easily take advantage of the special buying opportunities most relevant to their businesses.

“I defi nitely think they made some big improvements over the fi rst online event,” says Dan West, brand manager at Parkrose Hardware, which has fi ve locations based in Oregon. “The ability for us to order for multiple stores was a lot easier this time, and that’s a big deal for us. I also think the overall interaction with vendors was a lot easier because everyone was just more familiar with the way the system works.”

Misty Stenger of Lumber Direct, Greencastle, Pa., noted, “I am really pleased with what Orgill has done. I certainly miss going to the live shows, but there are also things you can do during the Online Buying Event that you couldn’t at a regular show. There is a certain convenience to sitting in your offi ce and being right next to your POS terminal, or being able to run down to your sales fl oor to look at things while you are browsing the show. There were fi ve of us working the show and it seemed to be a lot easier for us than at the fi rst Online Buying Event. Part of that is because we are more familiar with how it works, but we also appreciate the enhancements Orgill made.”

Orgill’s next dealer market is scheduled to take place in Chicago on Aug. 26-28.

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ROCK-BOTTOM specials were available throughout the 13-day Do it Best virtual spring market.

Buying Goes Over Big at Do it Best Spring Market

During Do it Best’s recent virtual spring market, member retailers were buying in large volumes not just to take advantage of show-special pricing. Due to pandemic- and recent winter storm-induced shortages, many dealers were locking in supply for up to six months in advance.

For the first time, Do it Best extended the online market to two weeks, March 7-19, expecting activity to outpace even the record 2020 fall market. Also held virtually, the 2020 fall show had 52% more store owner participation than its in-person 2019 fall market. The co-op attributed the growth to ease of access (no travel needed), flexibility (essentially open 24/7 for a full week from wherever they are), curiosity (attracting members who hadn’t been to a market in a while), and opportunity (great deals).

The spring market offered outstanding buying opportunities, including the popular Sneak Peek, new limited-time Cyber Steals, “beefed-up” New Item Gallery, and Market Savings Builder tool to search for the best deals within each product category. Strategic buying presentations were also offered by Do it Best lumber, building materials, and merchandising experts, as well as Knowledge Central on-demand training sessions from industry veterans.

During his kickoff message, president and CEO Dan Starr noted the record growth Do it Best has experienced over the last eight months “across the board. As you’d expect, that’s shown across core categories like paint, hand and power tools, hardware, lawn and garden, and lumber and building materials. But we moved other products at levels never seen before. For example, grills and grill accessories surged to an 85% increase. All told, eight months through the fiscal year, warehouse sales are up 28%, directs are up 24% and lumber is up 87%. And that’s all before we head into the busy spring selling season.

He added, “We’re excited to once again provide our members a virtual experience that enables them to maximize buying and savings opportunities, connect with our experts, and help ensure they’re optimized for growth heading into the new year.”

Despite the online market’s success, Do it Best is committed to holding an in-person market in Indianapolis this fall. Consequently, it has worked with the city to amend its original dates “to ensure we are all able to get together once again.” The new dates are Sept. 27-30.

LEAD SHARK Kevin O’Leary (left), co-star of ABC’s Shark Tank, spoke on business during the pandemic, then participated in a Q&A with LBM Advantage president/CEO Steve Sallah during the show.

LBM Advantage Swims with the Shark

Kevin O’Leary, co-star of ABC’s Shark Tank, advised LBM Advantage members on how to rise to the top even during a pandemic at the 500-member co-op’s recent annual buying show.

Typically held in Florida, this year’s edition took place virtually Feb. 22-24, bringing the co-op’s membership and staff face-to-online-face with hundreds of quality LBM vendors. Virtual booths enabled vendors to share product sheets, videos and other assets, along with a live virtual Zoom room to meet with Advantage members. They also had the ability to set up one on one meetings with members and staff , which resulted in a productive week.

“The virtual appointments were a bit like speed dating, but I met a lot of national sales reps and I benefi ted a lot from the three days,” said longtime member Jay Ward, Ward Lumber, Jay, N.Y.

Exhibitors off ered exclusive show specials promoted in advance, and many also had booth-only specials available to members who visited their virtual booths.

“It was essential to the show’s success that we bring our partners and members together. Even in a virtual environment, our members were able to speak with vendors, learn more about products and make deals. The technology worked well, and that made for a successful show,” said Tom Molloy, executive vice president, products and programs.

One featured speaker, Steve Frawley, Frawley Sales & Strategy, delivered a well received presentation on strategic growth.

For fun, country superstar LeAnn Rimes performed an exclusive virtual concert, and a virtual mixology lesson and trivia contest was available to members. Closing out the show, awards were presented to Advantage’s 2020 vendors of the Year, while members won several raffl e prizes.

IT WASN’T strictly business, as members were treated to an exclusive virtual concert by country music’s LeAnn Rimes.

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PROFESSOR Craig Wortmann (top left) instructed a group of 60 LBM leaders in the finer points of sales during LMC’s recent virtual “Sales Masterclass.”

LMC Hosts “Sales Masterclass”

Sixty leaders from 30 LBM companies attended a virtual “Sales Masterclass” hosted by LMC and led by the Kellogg School of Management’s Executive Education department.

For the seventh year, LMC partnered with a top three executive education institution to offer a concentrated leadership program. The session covered sales, marketing, finance, culture, innovation and negotiation, plus building skills in financial acumen, strategic planning, and leadership. During the three-day program, leaders were immersed in interactive lectures focused on sales that included small group exercises.

The class, led by Professor Craig Wortmann, took the attendees on the sales journey, where they learned how to do a self- evaluation of skills, handle objections, and develop the power of story-telling, among other skills.