E-commerce is building West Fraser's market share.

Situation
West Fraser, an integrated forest products company, originally supplied the Asian and European market with Kraft paper and linerboard products through its pulp and paper division, Eurocan. They had even located the mill at a deep-water harbour for easy access to shipping lines.

The volatility of the foreign market prompted them to change their strategy. West Fraser moved their focus to North America.

Challenge
To validate their commitment to the new strategy they needed to set up distribution centres to service their expanding customer base. An accessible inventory management system would be essential to control the flow of product from manufacturing to warehousing to the customer.

Solution
Lakeside unveiled SuperSearch to West Fraser. This proprietary online program opened a gateway to virtual warehousing, online ordering by West Fraser's customers and real-time tracking of product in the warehouse, over the road and by rail anywhere it was needed across North America.

Virtual warehousing is a combination of bricks and clicks. To provide this, Lakeside is setting up regional warehouse facilities close to West Fraser's customers. These facilities house inventory that has been allocated to major account customers and open stock that is available to any customer. As the paper rolls and linerboard are dispersed to the virtual warehouse system, the data is entered into Lakeside's SuperSearch system. The system handles information down to the detail of roll number, weight, and PO number that allows West Fraser to monitor every single item in the warehouse.

In a secure section of SuperSearch, designated West Fraser personnel can log on to their virtual warehouse and see their entire inventory, including product that is en route from their manufacturing facility. In fact, a click on their desktop gives West Fraser more information than they would have standing in the actual warehouse.

As items are ordered and shipped, the status of the product continues to be monitored online through SuperSearch – right down to the waybill and truck or rail car#.

Lakeside has expanded access to the virtual warehouse to enable West Fraser to market and sell their product online. West Fraser sales representatives are given passwords for customers. The customer – not the sales rep – logs on to call-off or order inventory for immediate delivery. Once an order has been submitted, the system generates and sends a confirmation instantly.

New customers are given a timed password to view and select from open stock inventory available in their region.

Through their partnership, Lakeside and West Fraser are continuing to develop systems applications that will increase customer service levels and expand West Fraser’s market share in North America.

Results
Sixty days after the initial presentation, West Fraser’s first Virtual Warehouse was up and running. Mark Thomson, West Fraser’s Transportation Manager, says, “The system is already paying dividends.”

• Customers receive delivery of orders within 24 hours.
• One month’s planned throughput was 8,500 metric tonnes.
• With Lakeside’s assistance, West Fraser was able to move 14,500 metric tonnes.