Creating Procurement Plans

Master the interactive lumber planning form and smart grouping system

The Interactive Lumber Plan Form

Navigate to Start New Buy to access the powerful, spreadsheet-style planning interface that transforms your lumber requirements into organized sourcing requests.

Step 1: Plan Information

Basic Plan Details

Plan Name: Choose descriptive names like:

• “Q1 2024 Framing Lumber”
• “Emergency 2x4 Stock Replenishment”
• “Spring Building Season SPF Buy”

Description: Add context for your sourcing event:

• Target completion dates
• Project requirements
• Special delivery considerations

Step 2: Product Specification Columns

Dimension Selection

Standard Framing

2x4, 2x6, 2x8, 2x10, 2x12

Engineered Lumber

LVL, I-Joists, Glulam

Specialty Products

Custom dimensions and profiles

Species Options

• SPF (Spruce-Pine-Fir): Most common framing lumber
• Douglas Fir: High strength applications
• Southern Yellow Pine (SYP): Treated lumber applications
• Hemlock: Regional availability considerations

Grade Classifications

Structural Grades

• Select Structural: Highest grade, clear wood
• No.1 & Better: Construction grade with minimal defects
• No.2 & Better: Standard construction grade

Construction Grades

• Construction: General framing applications
• Standard: Lower grade for non-critical applications
• Utility: Temporary construction use

Light Framing

• Stud: Vertical wall framing
• Light Framing: General residential use
• Economy: Basic applications

Target Pricing Strategy

Market Research: Research current market pricing before setting targets. Factor in:

• Seasonal price variations
• Volume discount opportunities
• Regional pricing differences
• Delivery and handling costs

Step 3: Quantity Planning by Length

Length-Based Inventory Planning

The form provides columns for standard lumber lengths:

• 8ft: Residential framing, partition walls
• 10ft: Standard ceiling heights
• 12ft: Commercial applications
• 14ft: Tall wall framing
• 16ft: Long span applications
• 18ft: Large commercial projects
• 20ft: Specialty long spans

Pack Quantity Calculations

Understanding Pack Sizes

Standard Pack Sizes:

• 2x4 Stud: 50-104 pieces per pack
• 2x6: 25-50 pieces per pack
• 2x8: 20-35 pieces per pack
• 2x10: 15-25 pieces per pack

MBF Conversion: System automatically calculates thousand board feet

Delivery Considerations

Plan pack quantities considering:

• Truck capacity constraints
• Storage space limitations
• Project timeline requirements
• Inventory turnover rates

Smart Grouping Logic

How LumberFlow Groups Your Items

1. Product Combination Analysis

   System identifies unique dimension-species-grade combinations

2. Automatic Grouping

   Items with identical specifications group into single sourcing requests

3. Individual Card Creation

   Each product group becomes a separate Kanban card

4. Length Detail Preservation

   All length-specific quantities maintained within each group

Grouping Examples

Example: Douglas Fir 2x8 No.2&Btr

Input Line Items:

• DF 2x8 No.2&Btr - 25 packs @ 8ft
• DF 2x8 No.2&Btr - 30 packs @ 10ft
• DF 2x8 No.2&Btr - 20 packs @ 12ft

Result: One sourcing request card for “Douglas Fir 2x8 No.2&Btr” containing all three length requirements

Example: Multiple Species

Input Line Items:

• SPF 2x4 Stud - 100 packs @ 8ft
• DF 2x4 Stud - 50 packs @ 8ft

Result: Two separate sourcing request cards (different species)

Advanced Planning Features

Volume Calculations

Automatic MBF Calculation

System converts pack quantities to thousand board feet automatically

Total Volume Summary

Preview total procurement volume before creating plan

Target Price Optimization

Pricing Strategy

Market-Based Pricing:

• Research current commodity prices
• Factor in regional pricing variations
• Consider seasonal price trends

Volume Pricing:

• Account for quantity discounts
• Plan for freight optimization
• Consider payment terms benefits

Price Tracking

After plan creation:

• Compare targets vs. actual quotes
• Track price achievement rates
• Identify best-performing suppliers

Plan Review and Creation

Preview Before Creation

1. Review Grouping Logic

   Verify how line items will be grouped into sourcing requests

2. Check Total Volumes

   Confirm MBF calculations and total procurement volume

3. Validate Pricing

   Review target prices for market reasonableness

4. Create Plan

   Generate plan and watch cards appear on your Kanban board

Post-Creation Actions

Once your plan is created:

1. Cards Appear on Dashboard: Each product group becomes a TO_SOURCE card
2. Supplier Selection: Choose which suppliers to approach for each product
3. RFQ Generation: Begin outreach with AI-assisted communications
4. Progress Tracking: Monitor quote responses and negotiations

Best Practices

Planning Optimization

Group Similar Products: Plan related items together to leverage volume discounts and optimize freight.

Realistic Timing: Consider lead times and delivery schedules when setting up multiple procurement plans.

Market Timing: Understand seasonal lumber pricing patterns and plan accordingly.

Common Mistakes to Avoid

Overly Aggressive Targets: Setting unrealistic target prices can limit supplier participation.

Insufficient Volume Planning: Account for waste factors and project overages in your quantities.

Next Steps

Dashboard Overview

Learn to navigate your new Kanban cards

Supplier Management

Set up suppliers to receive your RFQs

Advanced Workflows

Master quote evaluation and negotiation

AI Features

Understand how AI assists with RFQ drafting