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Running Head: COMMUNICATION PLAN: THE 84 LUMBER COMPANY

Communication Plan: The 84 Lumber Company

Alejandro Suarez

MGT510

Sullivan University
Communication Plan: The 84 Lumber Company

Introduction:

This document will try to analyze the current situation affecting 84 Lumber customers

and come up with a different alternative to the delivery methods. The use of outdated equipment

has compromised our operation, possibly leading us in the wrong direction if not taken seriously.

In this document we explore the different options and possible outcomes of implementing new

changes to the 84 lumber delivery systems. The objective here is to persuade CEO of 84 Lumber

Company that implementation of new equipment can lead to greater profits, greater employee

satisfaction, and performance.

Company background

84 Lumber was founded by Joseph Hardy in 1956. The company has been delivering

building materials and has proven to be a trustworthy supplier for thousands of builders around

the nation. According to the business website, the company has successfully built long lasting

relationships with builders in all corners of the nation and they are still expanding! Currently, 84

Lumber owns and operates over 300 stores. Within these stores they have doors, trims, metal

sales, garage and mini-house packages. They recently began installation centers of wood

products. 84 Lumber reportedly has over 5000 employees nationwide and continue to hire hard

working dedicated individuals. Employees are paid commission in the form of bonuses in

addition to an hourly base pay.

About the Logistic Supplier: BLS Company

BLS is one of many carriers 84 Lumber utilizes to deliver their product. BLS has

expanded their operation and established long term contracts with 84Lumber in exchange for

loyalty and company logo displaying, on site advertisement and distribution of marketing

material. According to their company website, BLS trucking Incorporated was founded in 1980.
Communication Plan: The 84 Lumber Company

They are based out of Dayton, Ohio and are family owned and operated. Although it is a small

company, it carries a great deal of responsibility in the delivery and handling of 84 Lumber

materials and supplies. BLS and 84 Lumber have developed a working business relationship and

mutual understanding of what's necessary for them to be successful. BLS Trucking Inc. operates

more than 300 trucks and 260 employees. BLS expanded its operation to continue delivering

products and materials in over 75 locations for 84 Lumber in 16 states.

Review of current situation

The 84 Lumber Company has been utilizing the same equipment for the past 10 years.

The original investment has paid off in many ways and they just seem to hang on as long as the

equipment is operational. However, not thinking about efficiency, productivity and convenience

for employees and customers has built a barrier that is becoming harder and harder to overcome.

According to Paun, & Ăzaroiu, (2011). “If you give them more of a reason to do something, they

will do more of it, and if you make it easier to do more of something they are already inclined to

do, they will also do more of it.” It is in part about collaborative production and creative thinking

plus dedication that things can start going in the positive direction. In this matter, it has been

brought to our attention that the outdated equipment has begun to limit the capabilities of selling

to customers in a more widespread area. Also upsetting many customers as they cannot receive

their product where it is needed in a timely manner.

Current challenges

This can easily be exemplified by having to make a delivery downtown where limited

space becomes a problem for the old forklift with lesser capabilities. The company is losing
Communication Plan: The 84 Lumber Company

ground to its competitors and the respect of customers. According to Guisado-González &

others (2016) “One possible reason is that traditional technology is not able to exploit the full

potential that an expansive cycle entails.” Looking for expansion to all customers in all areas

should be in the list of focal priorities. Delivering material in long and narrow driveways has

proven to be a very difficult task for the company. This is due to the current forklifts not being

capable of side wheel driving. Many occasions have called for manual unloading of tons of

material by the delivery drivers. This added cost then goes towards labor. The average costs of

manual unloading are at a rate of $75 per 25 minutes. This added cost then ends up in the

customer’s hands. At this point the customers are no longer satisfied due to the elongated wait

and overpay for labor.

The loyal customers of 84 Lumber could potentially leave due to the lack of support from

the company. Manual unloading generates added costs, longer delivery time, as well as

unforeseen damages to products. 84 Lumber attempts to cover the situation by stating that the

deliver was done under “special circumstances”. However, that is another customer loss that

could be linked to a top builder thus being a great loss for the company. Many of the builders

wait on site for their products to be delivered. They now have to pay extra hours to their

employees although no work is being completed. These customers continuously complain to 84

Lumber headquarters as to why their products were not delivered on time. This negative chain

reaction degrades the 84 Lumber name and respectable reputability, as well as disappointing its

customers. The message becomes clear that the outdated forklifts are insufficient in keeping

costs down and customers satisfied.

Risk of involvement
Communication Plan: The 84 Lumber Company

In general, risks linked with the major constraints in this case are budget, time

constraints, and implementation of new equipment knowledge base requirements. These

constraints involve a certain amount of risk; therefore risks will normally have an effect on the

advancement of the plan at hand. On the negative side, 84 Lumber could agree that time to

implement any changes in the delivery system must be immediate and must not have an effect on

our customers, at the present or in the pressing future.

The budget is also limited; the company could agree to spend millions in return for better

quality deliveries, access to more customers and a new and improved company image. Investing

the hours in the training of personnel responsible for delivery would also be required. Without

proper examination of risks this plan can be expected to give an unworthy and unviable

examination of a project with lack of direction. A key component of this document is to

demonstrate the probability of success by implementing these changes.

Opportunity for growth

The utilization of new forklifts with added capabilities must be taken seriously and

carefully. 84 Lumber must strive to achieve greater dynamic capabilities in order to satisfy all

segments of the market. According to Perdomo-Ortiz, Gonzalez-Benito, & Galende, (2009).

“…firms build different types of dynamic capabilities to create competitive advantage by

following a path of accumulation and learning.” This use of dynamic capabilities is the

difference between an expanding operation and a shrinking business organization. The use of

specialized equipment with astonishing productive capabilities such as the side wheel driving

forklifts exemplifies a significant increase in dynamic capabilities. In a study made by Zollo &

Winter, in 2002, dynamic capability is defined by “a learned and stable pattern of collective
Communication Plan: The 84 Lumber Company

activity through which the organization systematically generates and modifies its operating

routines in pursuit of improved effectiveness’’

Communication Plan

Main Proposal:

After careful review, 84 Lumber is evaluating the acquisition of new equipment in return

for increased customer satisfaction.

Roles entitled

The following roles entitled have been identified to receive the message.

The CEO/CFO along with top executives

Regional managers, area managers all included in the upper management group

Labor workers, delivery drivers

Customers

Objective one:

Make aware of the importance of the acquisition of new forklifts with better capabilities

to our CEO and top executives. The relevance of this investment will significantly change

the fate of the company. This message will be passed on to the whole organization from

top to bottom in the form of verbal and written communication.

Goal one:

The CEO and top executives approves the decision of acquiring this new equipment.

Objective two:
Communication Plan: The 84 Lumber Company

Make upper management aware that this new technology will most likely generate a new

wave of customers. Redirection of man power will be necessary to allow for proper

training and forecast proper growth with proper hiring to fill the new gap.

Goal two:

84 Lumber internal customers shall learn to utilize this new technology whilst adapting to

changes in demand and handling.

Objective three:

Customers become aware of improvements. The importance of the acquisition impacts

regular and special deliveries as well as possible savings. The subsequent consequence of

this investment will significantly impact the safety and improved handling time of

material.

Goal three:

Customers are made aware of these changes. Customers embrace the company for

making the decision to acquire this new technology in a great effort to satisfy even the

most difficult customer.

Key messages

The messages will focus on encouraging customers to stay loyal. With updated

equipment the negative chain reaction will be broken down and sales will be reestablished.

Message to CEO:

The current status of 84 Lumber’s equipment is degrading to the company. Thus, new

forklifts are needed for speedier and less damaging delivery. There are 300 stores, each store

needs 2 forklifts. These forklifts run about $30,000 per unit, meaning an $18,000,000 investment
Communication Plan: The 84 Lumber Company

is required. It is costly but it is crucial for the future development of the company. This will be a

long lasting investment that will require training and support as well as capital financing. The

risk of not implementing these changes is much more exorbitant than the $18,000,000 originally

invested.

Message to regional managers:

A large investment is being made by the 84 Lumber Company that will require you to

redirect man power from localities to allow for proper training of this new equipment. These new

forklifts run about $30,000 each so please beware that caution must take place. The cost benefit

of these forklifts has been proven and the decision has been made to upgrade the fleet.

Message to area manager:

New forklifts are coming in. They are capable of side wheeling and carrying heavier

loads. This will greatly improve performance. We shall see a reduction in downtime. Manual

unloading will no longer be an issue, in addition it will increase revenue.

Message to workers:

Great news! The 84 Lumber Company has decided to take action and improve forklift

fleet. We now have ability to enter driveways sideways improving our loading/unloading time as

well as reducing the manual labor. Please be aware that proper training will be provided by the

company.

Message to customers:

EXCELLENT NEWS! The 84 Lumber Company has decided to upgrade their

technology capabilities which are certain to be safer and more efficient. With this new

technology, product damages and delivery times will be significantly minimized for your

convenience.
Communication Plan: The 84 Lumber Company

Posting options

For all top executives, the message will be dispersed in the form of formal meeting

communication method. A formal presentation will be added explaining the capabilities of the

new forklifts. Additionally explaining why it is necessary for 84 Lumber to make the transition.

The presentation will include forecast in growth for the next 5 years, original investment cost,

marketing alternatives, as well as investment options.

Upper management will be entered in a phone conference where a representative from

forklift sales will explain in detail the exact capabilities of the new forklifts. Operation and

maintenance options will be extensively explained. A one on one meeting will be established for

upper management to examine the product and functionality on the field.

Workers will receive extensive paid training, product catalogs, and recertification letters.

Needless to say, heavy monitoring will be placed until workers have a better feel for the new

equipment. The training will be paid at base minimum pay rate in order to minimize cost. The

training will be provided by certified area managers who receive certification directly from

corporate. This will provide uniformity amongst branches and localities if labor is needed.

Customer will be receiving the benefit of all company efforts. Thus will be encouraged to

stay loyal and satisfied with our service along with products.

Materials used

On site advertisement will be placed at all 84 Lumber locations. Truck posters will be

displayed on trailers, in the form of a large vinyl poster displaying both a brief message and

image. These trucks travel all day, every working day, moreover the message will be dispersed

swiftly and effectively. In-store vouchers will be printed then handed to customers with every
Communication Plan: The 84 Lumber Company

transaction, to increase customer awareness of the changes. Job site pop up banners will display

on site where customers can become aware of the changes. Cashiers and clerks, along with sales

personnel will be advised to communicate the message to all customers verbally.

Communication method

Communication will be given in a variation of forms. A combination of written

communication, verbal, phone and internet will take place. Top executives will receive detailed

formal reports with in-depth data and analyses. This data will result from upbringings in sales, in

addition to customer reviews collected by area managers. Written emails will be sent to all upper

management and staff members from corporate. After one month of the product being released, a

follow up email conference will be directed to target efficiency and acceptance in general.

Verbal communication will be used in stores, approaching customers, training labor workers and

staff members.

Conclusion

In the case of 84 Lumber, the implementation of new technologies in logistics sector

could potentially change the fate of the company. In a nutshell, customers come first and

companies face two options either invests to satisfy the needs of many or continue to operate

with original equipment and hope for an increase in profits. Customers will allocate themselves

where convenience and technology is provided. The many benefits of updating our forklifts will

greatly increase level of satisfaction and positive experience, from both internal and external

customers.
Communication Plan: The 84 Lumber Company

References

About The Company - BLS Trucking, Inc. (2017). Retrieved May 30, 2017, from

http://www.blstrucking.com/About-The-Company.php

Guisado-González, M., Guisado-Tato, M., & Ferro-Soto, C. (2016). The interaction of

technological innovation and increases in productive capacity: Multiplication of loaves

and fishes. South African Journal Of Business Management, 47(2), 43-51.

History. (2017). Retrieved May 30, 2017, from https://www.84lumber.com/about/history/

Paun, Ş., & Ăzaroiu, G. (2011). The importance of technological innovation to international

relations. Economics, Management & Financial Markets, 6(2), 295-30

Perdomo-Ortiz, J., Gonzalez-Benito, J., & Galende, J. (2009). The intervening effect of business

innovation capability on the relationship between Total Quality Management and

technological innovation. International Journal Of Production Research, 47(18), 5087-

5107. doi:10.1080/00207540802070934

Zollo, M. and Winter, S., 2002. Deliberate learning and the evolution of dynamic capabilities.

Organization Science, 13 (3), 339–351.