Erie Materials delivery trucks
Erie Materials delivery trucks

While consultant Ruth Kellick-Grubbs devotes most of her recent essay for the Northeastern Retail Lumber Association on how 2016 is a year of opportunity for LBM operations, make sure to read through to the bottom. That's because the tail end of the story contains useful advice on improving your profits by getting "More Bang for Your Truck." Kellick-Grubbs writes:

Try this exercise: write down your best guestimate of how full each of your trucks are when they leave on the first run; do this for one week. Maybe it’s 90% or 60% or 30%. My best guestimate is that you’ll find an enormous amount of unused capacity on your first runs. You have great influence over these runs, and they should be best utilized each day. Imagine what capacity utilization could look like for subsequent runs.

Strive to generate at least $1.75 million in delivered revenue per truck, she says; good companies can top $3 million.

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