3 minute read
Industry Insight
Can Your Storeroom Be The Key To Success?
By MARY MATHEWS and TAMMY BECK, SII Dry Kilns, Inside Sales Representatives
It’s Sunday morning, and your heat valve is malfunctioning, and your kiln temperatures are all over the place. Even if you can get word to your kiln company, no shipments run on Sundays. The way we see it, you have four options:
• ONE: Monday morning, you alert your kiln company, and luckily, they have the exact one you need on their shelf, and they send it UPS next day. You receive the valve on Tuesday. Shipping cost: around $400. You were down for 3 days.
• TWO: To avoid shipping costs that high, you ship it UPS ground. It takes UPS 3-4 days depending on where you are located, as well as weather conditions. Shipping cost: around $50. You are down 5-7 days.
• THREE: Unfortunately, the kiln company does not have the valve you need in stock. Lead times can vary from 5-20 days for the manufacturer to build some valves. Now you are looking at being down 5-20 days on top of a next-day drop ship charge.
• FOUR: Your kiln operator has the foresight to see that if this valve went out, you would be in trouble. So, he/she went ahead and ordered one with no rush, ground shipping, to keep on your shelf. You were able to replace the valve on the Sunday it went down, and no time was lost. In addition, you also maintained the proper conditions in your kiln to avoid lumber degradation.
Obviously, the last option is the best solution to your problem. “I can confidently say that the happiest kiln operators are the ones who keep spare parts,” said Tammy Beck. “They are not bound by shipping or weather conditions, items being out of stock from vendors, and outrageous next day shipping charges.”
Examples of items that can shut you down: RTD temperature probes, valves, actuators, and electrical/control components, are easy to keep on your shelf. Other items such as motors and fans will not necessarily shut you down, but due to having to ship by pallet, you are throwing away money by ordering one at a time. For example, if you order one 5 HP motor, you are looking at around $300 to ship the required pallet it needs to go on. If you order multiple motors at once (usually up to 6 motors on a pallet) your shipping cost for that same pallet is around $450 compared to $1,800 (6 motors) in shipping charges if shipped individually
Very possibly, the most important consideration should be the cost for dry kiln downtime. For a typical 50,000 BF dry kiln, the lost revenues and missed opportunities, based on species being dried, can vary from $500 to $1000 per day. When considering costs for carrying spare parts, the potential for lost revenue can be a very persuasive discussion point for operators with management.
“We do our best to order and keep items on the shelf for all customers. But sometimes, even we run into vendor shortages or backorders. For best success, try to keep your own shelf of spare parts and look towards the kiln company as your back-up storeroom,” stated Mary Mathews.
Contact either at 1-800-KILN DRY or by email at kilninfo@siidrykilns.com.
