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Huntsville Lumber streamlines their loading process for increased profitability with Demountables

Huntsville, AL – April, 2008 - “It was a staging nightmare. There was only enough warehouse space to stage a half truckload of our product. We would stage part of an order and load it when the truck returned. Then, while the truck waited we would pull and load the rest. With two trucks making four trips a day we were wasting a lot of time and doing unnecessary work.”

That’s how John Krause, Huntsville Lumber’s General Manager summed up their delivery dilemma before implementing the Demountable Concepts System which enabled each of their two trucks to quickly switch between interchangeable bodies.

Here are three basic challenges Huntsville Lumber’s delivery operation faced and how Demountable Concepts provided the solution that ended their “nightmare.”

1. Slow loading process – since only half the order could be staged, pulling and loading the second half caused loading to take much longer than necessary.

The Demountable Solution: now upon returning to the warehouse drivers “swap” an empty body for a fully loaded body and are back on the road in around 5 minutes.

2. Employee downtime – loading could only be accomplished while trucks were at the warehouse. Two driver/helper teams lost an hour of time each while loading for the four trips they made each day.

The Demountable Solution: a second body is loaded at the warehouse while the truck makes deliveries. The need for staging product has been eliminated.

3. Double handling – limited space caused a two-step loading process that resulted in double handling and rush loading.

The Demountable Solution: the full order is now loaded directly into the body it will be delivered in without rushing. Staging is no longer necessary.

The chart below shows how Huntsville Lumber also added $30,600.00 of profitability 
to their bottom line by implementing the Demountable System.
Labor Savings

 

Annual labor cost for downtime of each driver/helper team 
($10/hr each; 4 hrs per/day; 5 day week; 52 week year)

$20,800

Annual savings: downtime eliminated for two teams using Demountables

$41,600

Demountable System Investment

 

Second body, two base frames and chassis lift

$27,500

Demountable System for two trucks

$55,000

Annual investment (amortized over five years)

($11,000)

Annual Savings Produced by Utilizing Demountables

 

Two trucks equipped with chassis lifts and four bodies

$30,600