TimberTracks™ was born of necessity. The forest industry has rightly been managing its supply chain costs for years. Logging contractors have watched their peers exit the industry and their own profit margins compressing. These financial stresses have been a part of generally deteriorating relationships between contractors and their customers. Contractors want to get paid more and their customers want to pay as little as possible.
What was missing from rate conversions is why should contractors get paid more or why should their customers pay less? Each side was largely negotiating in positional manners without understanding the predicament of the other. Instead of focusing on working together, they were focusing on trying to outdo each other. It has become a race to the bottom.
TimberTracks™ was built on the premise that the rhetoric is not doing the industry any favours. If contractors want to get paid more, they need to present hard facts that objectively demonstrate not only why but also provide solutions that minimize the cost impact to their customers.
The first step in building the facts is to understand your own business first. As a generalization, contractors are operators first and business people second. Success is often measured by loads of logs or volume of trees fallen or some other operational based metric. Financial factors are things their banks want to see. As the saying goes, “You can move logs or you can make money moving logs.”
Relying solely on operational metrics to determine success can lead to poor economic decisions for long term business success. Hauling logs that extra wet day might be good for your customer but is hard on your equipment, costs extra money, and stresses your workers.
Successful contractors know what operational factors make them money and which ones lose them money. They learn how to explain these issues to their customers and manage their businesses accordingly.
TimberTracks™ is the tool to help contractors firstly understand their own performance and what operational factors help and hurt them. Second, it provides insights into how they stack up against their peers with similar operating factors.
Have you ever wondered why your customer is ignoring your request for increased rates? It is most likely they think you run an inefficient operation. TimberTracks™ gives you the tools to demonstrate how you are performing against similar circumstances in the past and how you are performing against other contractors in similar circumstances. It might be you. Or you might be as good or as better than your peers. If the latter, it becomes a compelling case when you can objectively demonstrate it is not you but the operational circumstances, the “logging chance”, that is the problem. If it is the former, then you know where you are having issues and can get assistance, whether from your customer or your peers, to fix them. No rate adjustment required. Just a more efficient business.
TimberTracks™ is your solution to an efficient and profitable logging business.