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Bob Kinnucan, president of Kinnucan Co. in Lake Bluff, Illinois, supplied two tips this week. Both have to do with timeliness.

Tip: Response Time Is More Important Than Ever Before

I have been a landscape contractor for 32 years and have seen many changes during that time. One of the most dramatic is the importance now placed on “response time.” Up to 10 years ago, contractors had a relatively big response time window. If a prospective customer made a query or if a current customer had a question, a contractor could take up to a week or more to respond. That has changed 180 degrees now, thanks to an increased number of competitors and the public’s level of service expectations.

Today, when customers call or otherwise request information from us, they will not wait a week, nor will they wait a day. Our policy is to get back to them instantly, if possible. To make this happen, all of our foremen and decision makers are equipped with Nextel phones/radios. If foremen cannot answer questions on location, they can contact someone who can. Similarly, requests to talk with other decision makers in the company can be accommodated, no matter where they are — in the office, at the job site, or on the road.

There is no question that the velocity of business has increased over the past few years. People want service; they want answers now, not tomorrow. Of course, part of what is driving this change is technology. Technological innovations have made real-time information and communication a reality — and an expectation.

Just because the competition is more intense, does not mean that every landscape contractor picks up on the importance of response time. I feel there are two distinct market segments out there — one that is based primarily on price and one that is based on service. If your market is price-oriented, then response time may not be as important as it would be if your market were service-oriented. For service-oriented providers like ourselves, response time has to be part of the equation and “instant” response time is part of what separates us from our competitors.

While I was in Europe earlier this year, several clients called and left messages. After getting back to the office and returning their calls, they each had a similar response. “You must have been out of the country, or I would have heard from you.” The point is that our customers expect a high level of service, including exemplary response time from us. Again, this helps separate us from the competition.

Never underestimate the importance of time. People are multitasking, taking short breaks for lunch, and literally cramming as much as they can in a day. They do not have time to make a second phone call to your office, and, chances are, if they make a second call, it will be to a competitor. My tip is — if you receive a request from either a current or prospective customer, respond to it as quickly as you can. Your current customer will expect it, and a quick response gives your company a better chance than your nonresponsive competitor of transforming a prospect into a new customer.

Tip #2: Just-In-Time Material Flow Saves Time and Money

Ten years ago, we implemented a Just-In-Time approach for both our green and hard goods. Modeled after the program used in the manufacturing industry, the approach was designed to save us both time at the job site and money at home.

Here is how it works. On the morning of the day when a job is to be installed, our delivery person picks up either plant material or hard goods from our supplier. The driver delivers it to the job site, where our installation crews have already prepared the site (because they did not have to spend time loading the material). The process works the same way as it does in manufacturing, and many of the benefits are similar, too, including lower inventory costs. Here are some other benefits:

We have eliminated our nursery holding area, including the person who supervised the area, and the costly watering system. The move also eliminated the negative impact caused by surprise freezes and periods of extended drought, both of which damage plant material.
Our cash flow has improved. We no longer purchase plant material weeks, even months, before we install it and bill for it.
Going to “Just-in-Time” eliminates the 10 to 20 percent shrinkage rate common when holding plants. No matter how careful and attentive your employees are, plant material will suffer damage when stored, and it is costly when you consider the watering and fertilizing costs involved. These costs come right out of your profit margin.
Finally, the “Just-In-Time” program saves us time. As mentioned above, our installation crews can drive directly to the job site, without having to load plants and other materials in the yard. While they are prepping the site, our delivery person is picking up the material.
T he cornerstone of any “Just-In-Time” program is scheduling. There is no advantage to having the material show up when there is no crew to install it. Communication is vital. So, too, is having good relationships with your suppliers. After all, they are the ones who take care of your inventory after you pick it out and tag it.

Submitted by Bob Kinnucan
Kinnucan Co.
Lake Bluff, IL
rkinnucan@aol.com