The secret to your future success lies in your data. There I said it. Data is important to make decisions, eliminate waste and know what your customers want. Data doesn’t lie, but it may not always tell you everything you need to know to understand what it means. Data can be destructive if misused or misinterpreted.
Unfortunately, many pallet and lumber companies don’t focus much on their data. Or they may only look at a few key numbers. Too often, everything is just in an Excel spreadsheet. Data is only checked a few times per year for quarterly meetings. What would happen in your organization if you made 2021 more data driven?
According to the McKinsey Global Institute, data-driven organizations are 23 more times likely to acquire customers and are six times as likely to retain those customers. Here’s the kicker: data-driven organizations are 19 times more likely to be profitable.
A good data set doesn’t develop overnight. And your company and its employees must be focused on capturing, analyzing and properly using data. The good news is that there are several suppliers that have developed software to help pallet and lumber companies manage their operations, track production and do other key functions. You can always create your own software, but why re-create the wheel? That’s one of the questions that Tree Brand Packaging had to answer in its process of improving data management, analysis and storage. See the cover story on page 14.
Earlier this year, Greg Bowen, president and owner of Bo’s Pallets in Adairsville, Georgia, talked to the Enterprise about the importance of data to managing a pallet operation today. He said, “Knowing what is in a load removes all the guesswork out of sorting and repairing cores. Too many pallet companies are having to make educated guesses when it comes to core quality. Data tracking is critical to make smart decisions. Our data provides accurate counts, which is a huge advantage over any competitor that doesn’t have data tracking because I am not guessing at the deal.”
Bowen relies on production tracking software and the Mill Manager™ Enterprise Resource Planning (ERP) program offered by Innovative Data Systems (www.pallettrack.com). Software leads to better systems and analysis. And this can even help companies obtain customers and secure accounts.
The Enterprise also covered the success story of Timpack, a major pallet company in New Zealand, that completely revamped its data processes after switching to the PalMate™ ERP (https://thepalmategroup.com). The company’s legacy system relied too much on function keys and tabbing around multiple screens. Newer software makes data usage and training easier. This is important because you want software that multiple people can easily use to get everyone on the same page.
Buying a program designed for the pallet industry helps eliminate much of the customization that can drive up the cost of implementation and take more time to configure and train. Sharyn Waldron, finance and admin manager for Timpack, stated, “PalMate is an ERP tailored for the pallet industry, so we didn’t have to explain the processes involved… They already knew.”
There are even more data options in the industry than the past. A relatively recent player is Pallet Connect (www.palletconnect.com), a cloud-based ERP built specifically for pallet companies of all size. This software was developed by a Canadian pallet company trying to simplify its workflow while improving management of its clients, vendors, employees, warehouse operations and financials. Pallet Connect charges a relatively low monthly fee and is available for free for one person to try. See the ad on page 26.
Philip Varley, vice president of Pallet Connect, explained, “With our cloud-based pallet management application, you can view and run your business from anywhere on any device. Our system is designed to work across all levels and sizes of pallet companies from the smallest of locations up to mid-sized and larger multipurpose lumber and pallet facilities.”
Some of your existing suppliers may even offer good data capturing tools, such as your nailing or sawmill machinery vendors. Some of these provide improved data capturing and analysis functions as part of buying their equipment or for a one-time fee. I recently spoke with Martin VanDenack of Industrial Resources (IR). His company offers a software suite that ties into IR recycling and repair machinery as well as those belonging to other suppliers. Customers can use IR software to analyze production efficiency, compare historical data, accurately record production, and use data for payroll. See IR’s ad on this page.
Martin VanDenack identified, “The big thing that some pallet companies are not looking at is that data can give them efficiency information on machine run-time vs throughput productivity. They usually just look at the end of an eight-hour shift and conclude, we did this. But our reports help identify the total efficiency of the system based on its production capabilities.”
IR’s approach uses barcodes to track pallets throughout the process. Under the right circumstances, IR also can help facilitate data collection on sort systems without barcodes. This information is collected into an SQL database, and analysis is done using Crystal Reports. IR decided to use off-the-shelf technology so that using, analyzing and exporting the data would be fairly easy. One of the questions to ask as you evaluate software options is how easily can you get to the data and integrate it with other software products.
You will want to look at how the data is captured and ensure reliability. That is one challenge with using wireless technology in a pallet or lumber plant. VanDenack warned, “We try to stay away from wireless data collection and transfer because if something happens to your wireless router, you lose data connectivity. We usually try to use a hard-wired approach.”
So, how does better data fit into your plans for 2021? Consider developing a data and analytics team at your company. You may discover that the answers for an improved company have been at your fingertips all along.
