Using Market Data to Promote Better Decision Making in the Timber Industry

The timber industry has a lot of grey areas when it comes to pricing. Distributors determine the price of timber based on publicly available information, which is determined by the market demand. Increasing distributor and retail access to global market performance creates a transparent industry, allowing lumber yards, building suppliers and garden centres to plan when and at what price to work with when planning for the year. The steps building suppliers, garden centres and retailers in the timber and lumber industry can take to make the most accurate decisions are as follows:

  • Identifying what your company requires
  • Evaluating all domain-related data
  • Analyzing the data from all perspectives
  • Using historical data to forecast outcomes
  • Finding the best solution and knowing which path to take
  • Coming to a final decision

Timber, building supply and garden centre businesses around the world must make strategic and operational decisions across units in order to function more effectively. Poor planning without thorough analysis and a strategic approach can have a negative impact on the business and result in client loss. As a forward-thinking company, Phoenix Solutions does not rely on traditional decision-making processes and legacy systems. Our consultants and VCFOs understand that to keep up with rising market demands, they must move forward by leveraging real-time data analysis that extracts value from business in motion from reputable sources and by leveraging the Phoenix Ecosystem.

Reasons to Analyze Market Data for Better Decisions

Efficient decision-making is based on several factors, the most important of which is the data available about the market at the moment. Some of the reasons you should entrust Phoenix to monitor market data regularly in order to make profitable business decisions include the following:

  • Making decisions based on facts, no assumptions
  • Risk assessments to support cost reductions and prevent loss
  • Being agile, flexible, and having the ability to pivot
  • Statistics in Real Time
  • Phoenix VCFOs are industry veterans with the ability to utilize historical data in forecasting and revenue models.

Market data provides a clear picture of the industry's current state across all verticals. By tracking and analyzing such data, your company can obtain information and use it to strategize business plans and objectives. This, in turn, will aid in increasing profitability by providing long-term risk management and lowering total expenses by avoiding unforeseen situations. Market data can provide critical insights into cost management while also providing an idea of the best-performing regions across various industry segments allowing you to determine new geographic areas to buy or sell to and streamlining the export/import process.

Depending on your company's priorities, you should investigate specific factors that validate your insights and provide enhanced decision-making support. These are some examples:

  • Estimates of Market Size (Growth & Historic Trends)
  • Important economic indicators
  • Pricing trends in your region and across the country (Globally if you're an international company)
  • Insights into Production
  • Insights into Inventory and Logistics
  • Insights into Export/Import
  • Statistics on Shipping and Container Line Performance

Finally, decision management based on data-driven insights can yield significant business benefits while mitigating associated risks. Building suppliers, garden centres, and lumber yards can work with the Phoenix Ecosystem and utilize valuable market data to help you keep track of production, inventory, export/import levels, consumption, and logistics. The Phoenix Ecosystem provides resources to cover all the critical aspects of the value chain that benefit buyers and sellers in the global building supply, garden centre, timber, and related SMB sectors.

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