Roseburg Forest Products Co. manufactures and markets a diverse line of wood products, including engineered wood products, lumber, softwood plywood, composite and hardwood panels, decorative melamine, wood pellet fuel, and other types of wood products. The privately owned company has agricultural land, a wood chip export terminal, and 20 manufacturing facilities in northwest and southwest regions of the United States. Its customers include home improvement centers, professional lumber yards, furniture and door manufacturers, and wholesale distributors throughout North America.
Roseburg Forest Products, which operates in a freight-intensive industry, spends approximately US$100 million annually on product transportation costs. In an average year, it sends 60,000 full-truckload and rail shipments to customers across North America. Facing rising energy costs and a weakened housing market, Roseburg Forest Products took a careful look at its freight operations in 2009 with the goal of reducing costs and improving its ability to compete in price and customer service.
To identify the true cost of freight and efficiently manage transportation carriers and routes, Roseburg Forest Products deployed Oracle Transportation Management, which is pre-integrated with the company’s JD Edwards EnterpriseOne enterprise resource planning (ERP) environment.
Today, the company has a solid understanding of its actual transportation costs by mode, route, carrier, and more―including accessorial charges, such as tarping fees. Based on this information, Roseburg Forest Products can analyze actual freight costs and adjust shipping pricing, up or down, to more accurately align with the company’s costs. In early deployment, the company made significant and rapid progress in closing up the US$1 million to US$2 million discrepancy between what it actually costs to ship its wood-based products and the lower rates it charged its customers.
At the same time, the company advanced its goal to compete on price and service by providing customers with expanded freight options. Roseburg Forest Products now enables customers to specify when they need their orders delivered and presents them with options for meeting those targets.
Roseburg Forest Products has counted Oracle as a strategic business partner for several years. When the time came to select a transportation management solution, the question for Chief Information Officer Daniel Coyle and his team was “Why not Oracle? Why should we look further?” Regardless, the company conducted due diligence, validating its preference via industry analyst reports and market reputation. In addition, the prebuilt integration between Oracle Transportation Management and the company’s legacy JD Edwards EnterpriseOne environment was an important benefit, according to Coyle.