A Brief Analysis of the Hayward Lumber Company’s Environmental Strategy (Case Study)

1179 Words Mar 19th, 2014 5 Pages
OM 671 – Supply chain environmental management
“Green” Building
A Brief Analysis of the Hayward Lumber Company’s Environmental Strategy

1/23/2014

HLC initially looked into FSC-certified wood when custom home-builders began to generate a demand for the material. This consumer base is generally providing a service for luxury home buyers who tend to be less price-sensitive and willing to pay the higher rates in order to claim environmental friendliness. The other portion of their customer base, low-cost builders, did not show an interest in such expensive products despite the ecological appeal. In order to meet the demands of the luxury home buyers HLC dedicated a portion of their inventory holding to FSC-certified lumber,
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The article mentions that a lumberyard in the region would cost around $12 million, making it very expensive for a green builder to buy land to appropriately store excess product or safety stock. It would be time-consuming for the green builders, as well, because they may require specific requirements that HLC is used to accomodating. Taking on these extra tasks rather than sourcing from HLC would drastically reduce the time that could be spent on other projects. HLC has a long-standing history with many subcontractors for providing quality and meeting custom demands and deadlines such as specific delievery instructions to prevent cluttering construction sites. Similarly, HLC is set up specifically to handle incoming wood and abiding by certification standards. Their relationships with sourcing partners also may enable them to acquire the limited eco-label more easily than a builder could. Their plan to become a “one-stop shop” for green building is a strong one. It enables these builders to obtain the environmentally safe building materials all from one trustworthy supplier – at any time they wish due to the “just in time” approach of HLC. Easing the builder’s procurement process reduces costs further for the builders and promotes a good image of the lumber company. Educating the industry about eco-friendly building tools and materials

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