Episode Transcript
[00:00:09] Speaker A: Welcome to the Clear Impact Podcast brought to you by PGTI University. Thanks for joining us today. My name is Sherry Connor and I am your host.
[00:00:24] Speaker B: Well, good afternoon. We are here on the Clair Impact Podcast and we are in a series called windows and doors 301. And today's guest is Bobby Jo Henry. Welcome, Bobby Jo.
[00:00:36] Speaker C: Thank you.
[00:00:36] Speaker B: It's so nice to have you here. I know I had a lot of opportunity to interact with you, but it's always a friendly face and see you on the mezzanine. And we both have the same middle name. So why don't you introduce yourself, like tell us a little bit about your background, your education, maybe your career path and then your current role and responsibilities here.
[00:00:55] Speaker C: Okay. So I was born and raised in Tennessee. After I was married and had a daughter, I did some traveling with my husband's job. So that originally took me away from completing my education. But I knew my end goal was to always get there. So after traveling through Ohio, coming from Ohio to Florida and then back to Tennessee, I held several different roles. I thought I was going to do accounting. I decided I couldn't stand to sit behind a desk and type all day without interaction with people. So my accounting experience led me into actually my first supply chain role which was kind of all encompassing of all scopes of supply chain. So it was very intriguing to me. But as I was trying to manage everything from order entry to planning and scheduling, purchasing, warehousing, logistics, it was for a smaller company. But we started to grow, I decided I really wanted to find my niche in supply chain. So once I moved back to Tennessee, I obviously had to find a new job and I was very blessed that there was a company that was a greenfield company and they were just starting up and so they were hiring people that had all different backgrounds to try to work through their project, get the plant built and then those people would then be the first people they slotted into new roles. So it was a German based company and they are very, very, very education based. They really want you to be able to have the piece of paper and have the education background. And so I started working with my HRBP at the time and got enrolled back in school. So I went back to Tennessee Wesleyan and got my four year degree in business management with a focus of industrial management specifically because manufacturing always had intrigued me through my roles and that's the role I would be responsible for in my new job. So I had three teenage kids at home at the time, 14, 16 and 18.
[00:02:48] Speaker B: Oh gosh.
[00:02:49] Speaker C: I was working full Time. Went back to school full time and came back with my degree. Finished 16 months later.
[00:02:56] Speaker B: Nice.
[00:02:57] Speaker C: So in that role, I did a lot of international supply chain, working with commodities, working with packaging, working with chemicals. And then when I came back to Florida, it was during COVID We knew when we left, we would come back. And we came back during COVID So I was working remotely. We expected that we would remain remotely after the fact. But our president, about three months later, decided he wanted all management level back in the office, at least on a hybrid schedule. So since I had permanently relocated to Florida, that wasn't an option.
[00:03:28] Speaker B: Say, that's a little bit of a commute.
[00:03:30] Speaker C: Yeah, just a little. And so I started looking for roles in the Sarasota, Venice area. I heard lots of good things throughout the community about pgt. So I have been in a role here at pgt. Three different roles, actually, so far over the past three and a half years. So my current role is senior supply chain manager for the PGT and Windor brands. So I have responsibilities for scheduling, purchasing, stock room, and inventory management across the entire Venice campus for Windor, the glass plant, and pgt, as well as our Fort Myers production facility.
[00:04:05] Speaker B: Wow.
[00:04:06] Speaker C: Yeah. So my team's comprised of about 60 people overall.
[00:04:09] Speaker B: Okay.
[00:04:10] Speaker C: When fully staffed. And we have a lot of work to accomplish with such a small amount of people.
[00:04:17] Speaker B: Wow, that's amazing. I didn't realize that you had that scope of responsibility. So you report to Jeff Schellinger?
[00:04:25] Speaker C: No, actually, at pgt, our supply chain reports in through operations. So Chris Roof, our senior director of operations, is my direct boss.
[00:04:34] Speaker B: Okay. I love him. He's great.
[00:04:35] Speaker C: Yes, I do, too.
[00:04:36] Speaker B: All the leadership here is great.
[00:04:38] Speaker C: So, yeah, it's been an amazing place to work. I always say the people you work with have to be like family because you spend more time with them than you do at home with your real family. And I really find that that that's the culture that we have here. And that's one of the things that's really kept me pursuing more here. Learning more, when it came in windows and doors was not my expertise from a supply chain perspective. I had dealt with metals before from the commodities business. Glass is something that I had to learn from the ground up, obviously, new manufacturing. And my husband has been a project superintendent or a GC for 25 years. So I knew the construction side of the world very well. But not specifics to windows and glass.
[00:05:20] Speaker B: Yeah. It's more complicated than people realize. I think.
[00:05:23] Speaker C: It's very much so. I still tell myself every day I have so much left to learn. People ask me a question and I'll be like, I don't know, but let me go find out for you. Because that's easier than saying, go ask someone else, because then I still don't know the answer.
[00:05:38] Speaker B: Right. That's what I do, too. So what we're going to be talking about in today's segment is really around glass volume and sourcing. Because glass is such a huge component of our product, most people are ordering windows and doors with glass in them. So it's a pretty fundamental piece. And through different conversations, I've. And now totally know that this is you. Yeah. This is your wheelhouse. So do we have more than one glass supplier?
[00:06:07] Speaker C: We do. We actually have multiple glass suppliers depending on glass type. So we have an outsource supplier for any glass that we can't personally build in house at our PGT glass plant. That's usually based off size and weight because we do have restrictions in our operations facility here at the glass plant. So we do have outsource suppliers that we bring in finished glass from in racks and literally just drop it in the window or the door. But we also do then have multiple vendors as well that we outsource raw glass and components from to utilize here in our glass plant.
[00:06:38] Speaker B: Okay. And so that's just smart, right? You don't want all of your eggs in one basket.
[00:06:43] Speaker C: That is correct. If there's one thing you learn in supply chain, it's that you really put variety and opportunity out there. One of the things that we strive very hard to do every day, we consider that our operations team as our customer. We are of a service team and a service unit to the operations team. So our goal is that we protect risk of material outages in several different capacities. One of those definitely being having multiple suppliers.
[00:07:11] Speaker B: Right, that makes sense. And so just I love numbers and I love wowing people with numbers. And so I'm going to pick your brain.
[00:07:18] Speaker C: Okay.
[00:07:18] Speaker B: So how many trucks slash, you know, sheets of raw glass do we get, like, on a weekly basis here?
[00:07:25] Speaker C: Yeah, so we have only one unloading dock at our glass plant because glass plant comes in very large packs and they're very heavy. So we have one dock that we can unload in. So we have to schedule trucks in a very streamlined way to ensure that they get in and out. So we have about 30 slots available on a weekly basis to unload trailers over the past four to six weeks. We're averaging right now about 26 trucks of glass per week. And you have to remember, that's 40 to 44,000 pounds per truckload.
[00:07:59] Speaker B: Oh, gosh. Okay.
[00:08:01] Speaker C: And it also equates to about 6,000 sheets. So we have a very diverse offering here at pgt, being custom. So we have to order in different sizes. We have to order in different thicknesses. We have to order and build a truck to maximize the weight of the truck. So we do that by picking and choosing what adds up to max out that truck that we're going to need within that day.
[00:08:27] Speaker B: Okay. Wow.
[00:08:28] Speaker C: Yeah.
[00:08:28] Speaker B: And so different colors, too, right? Because it is. Because our glass, like, we don't tint our own glass. The glass is tinted in the float process. So if you need blue or green or bronze or whatever, that all has to be correct.
[00:08:41] Speaker C: Yep. So we order in clear, obscure, the solar band 60 and 70, as well as in all of our tents. So we do that with just standard glass. We have to buy annealed glass. We have to buy tempering glass, plus the variety of colors. So we base that on what our capacities are, what we see the demand as being, and ensure that we have all of the different flavors. Because not only is it all of the flavors and all of the sizes and all of the components, but how do they recipe together, Right. To come up with a finished unit of glass that then goes into the window or into the door.
[00:09:20] Speaker B: So how many different kinds are there? Like, is there just a number?
[00:09:24] Speaker C: We have 15 to 18 different basic glass types. But again, they come in multiple sizes. I mean, whether you want 3 millimeter, 5 millimeter, whether it's going into a lamy only unit, whether it's going into a lamy IG unit, where it goes through insulation. So we have different sizes of the glass pieces themselves. I mean, we order 86 by 144. We order 108 by 120. So we really look at what are we making out of it and how do we optimize the yields from it. In order to understand what are the best sizes to buy in order for us to have the least amount of waste.
[00:10:04] Speaker A: We are sharing our expertise around all topics relating to the window indoor industry. Whether you are a customer selling our products or a homeowner doing research, the Clear Impact podcast provides helpful content that makes an impact. Subscribe today wherever you listen to podcasts.
[00:10:22] Speaker C: Right.
[00:10:22] Speaker B: Well, and I know, like we've had conversations around, that's where we determine the sequence of building is maximizing that glass sheet and that the XYZ cutters do all of the configuring. And so it might be this order and that order and those three units from this order all make this sheet of glass to its maximum capacity.
[00:10:42] Speaker C: Correct.
[00:10:42] Speaker B: So it's like cutting out cookie cutters. Right. With the dough.
[00:10:45] Speaker C: Like.
[00:10:45] Speaker B: Okay, I can get one more right here. Which shape is it? It's that one.
[00:10:49] Speaker C: Yep. Let's put the puzzle together.
[00:10:51] Speaker B: Exactly.
[00:10:52] Speaker C: Yeah. And so we do that for yield optimization, obviously, scrap reduction, cost optimization. So in doing that, that allows us to have the best opportunity to be successful.
[00:11:04] Speaker B: Okay. So right now I think our current lead times are running like three to four weeks, which is amazing for a custom made product. I mean, I started here during COVID and lead times were like six to eight months.
[00:11:15] Speaker C: And so. Absolutely.
[00:11:17] Speaker B: So like people are fussing about three to four weeks. Like, oh, please, that's nothing.
[00:11:22] Speaker C: Absolutely. Yeah. And it's funny how different lead times get different commitments and connections and how just those varying one or two weeks can make all the difference.
[00:11:32] Speaker B: Yeah, well, it's a structural part of the building and so you've got to get those in before you can do other things. So with that, like, what is the forecasting for you? Like, you have to be able to plan ahead, but you don't have the orders until you have the orders. So you just go by averages. And like last year we used this much or. I mean, I know you don't have a crystal ball, but I wish. Yeah, I know. Don't we all? So how do you forecast your purchasing?
[00:11:57] Speaker C: So we go at it in a couple different ways. So one process that we've defined in purchasing over the past 18 months is what we call DSSP. You know, we're all about acronyms at PGT and it stands for your dynamic safety stock program.
[00:12:13] Speaker B: Okay.
[00:12:13] Speaker C: So what we do is every quarter we look back at the usage and the demand for the past three months and get an average of what we used every week. From there, we then also look at is that trend different than the previous quarter? Because sometimes you have a high demand for colors, intense. Sometimes most of your demand is in clear. And so we have to forecast to our suppliers what we think we're going to need on an annual basis by square footage and by glass type and by color. So it was really important to me to ensure that we had a systematic way to do it. Because otherwise if you just say, here's what I'm going to expect for the year and you're not doing any reviews, if you have any market shifts, we do the same thing with aluminum extrusion and vinyl extrusion and you have market shifts, then you're going to be ill prepared for what the glass plant needs to be able to build their glass. Right. So that's the first step of what we look at. And then from there we take that information and we set a min max level based on the amount of capacity for storage of materials we have within the glass plant. So then every day we look at what is our on hand inventory, what is the demand in the system, where are we in the minmax leveling situation. And then we place orders with our glass suppliers accordingly. So most glass types come with a one to two week lead time. But the difference is, is we have to schedule glass to be ready and delivered to assembly prior to the assembly plant, putting the unit together. Right. So we can't always base that on three weeks because we don't have three weeks to get it to the assembly plant. We only have 10 to 14 days in most cases to prepare the materials, get it through scheduling, get it ran at the glass plant, delivered to the assembly plant, so they can then build the units to ship out to the customers within the lead time. And so we have three different sets of checks and balances. Again, one is our safety stock planning program, the min max levels. And then we have daily inventory counts that we compare the system to what we have on hand. We know that you know, in building glass you're going to have challenges, you're going to have fallout, you're going to have broken units. And so not only do we have to prepare for the demand as it states, but we have to over plan for that so that we can recover those units that could have a quality issue, could get broken, driving between plants, things like that. And so we use all three of those measures every single day to ensure that we are maximizing what we're bringing in, that it meets the customer demand based off of their expected flavors or requests.
[00:15:01] Speaker B: Wow.
[00:15:02] Speaker C: Yeah. One thing a lot of people don't know about PGT is that we are a hundred percent custom business. Meaning every order that comes through the door is already on a drawing somewhere. It already has a specific hole it has to go in. Right. And all of those specs are preset. And so we don't build anything to stock to say, oh, pull it out of the warehouse and ship it. So customer A could want blue glass, customer B could want green glass, customer C could want clear glass with rain or obscure glass in their bathrooms, depending on what they want their bathrooms to look like. And so every single unit on every single order has to be taken into consideration when we do that planning.
[00:15:41] Speaker B: Right. Well, it's mind boggling to me that we're able to offer so many different types and different colors. And then when you start talking about sizes and configurations and, you know, design pressure requirements and, you know, then you get into the low E and the energy, it's like mind boggling how many different combinations there.
[00:16:01] Speaker C: Absolutely.
[00:16:02] Speaker B: It's kind of crazy for what we do here.
[00:16:04] Speaker C: Yeah. And we see that the complexities that come with that. Right. Because like you say, depending on the size, the DP pressure, you know, how close are they to the water, where are they from a compliance standpoint, to be able to get certificates of occupancy, you know, all of those things have to come into play with every unit that we build. And that really drives, you know, a complexity and the complexity of the glass. I know you love your numbers. So, you know, we at any point in time have anywhere from 650 to $750,000 worth of raw glass inventory, not counting inner layer, not counting chemicals, not counting all of the other things that we have to have to build the glass. We carry that value every week. And, you know, if you look at total spend, like you said, people don't usually order doors or windows without glass.
[00:16:50] Speaker B: Right, right.
[00:16:51] Speaker C: So when you look at a total spend from our purchasing perspective relative to glass, that's about 30% of our annual spend from an expense standpoint.
[00:17:00] Speaker B: Wow.
[00:17:00] Speaker C: And so at any point in time, we could have an annual spend anywhere between 75 and $85 million on nothing except glass.
[00:17:09] Speaker B: Wow. That's crazy.
[00:17:11] Speaker C: Yeah.
It's a lot bigger and a lot more complex than a lot of people think it is.
[00:17:15] Speaker B: Well, and I know we've had conversations, and I've even had conversations recently with a MITRE executive team around the importance of maintaining those good relationships. Mike Olin and I spoke not too long ago and he was talking about, like, the supply chain impact during COVID you know, and if you're a supplier and you only have enough goods to supply two customers, but you have five customers, you know, who are the two that are going to get your goods.
[00:17:42] Speaker C: Right, right.
[00:17:42] Speaker B: And it's the ones that you have the best relationships with. And it is.
[00:17:46] Speaker C: And one of the things that we do on my team is we have what's called a supplier relationship management program. And we look at all of our supp, but very specifically the suppliers that make up the top 80 to 85% of our annual spend. And we take those suppliers, we ensure that either between them coming here or us going to their plant, we have at least an annual face to face, and then depending on the need, we have at least a monthly call. Some suppliers we talk with weekly, we go over forecasting, we go over supplier performance and really work to build those relationships to ensure, again, that we are protecting our risk of our materials. Right. So all of our three main glass suppliers, obviously, based off the dollars I gave you, are part of that program. And we have weekly and monthly calls with all three of them.
[00:18:38] Speaker B: Nice. That's awesome. Well, those are some big numbers and big things. Is there anything else that you think would be pertinent for people to understand about glass volumes and sourcing and how all that plays into what we produce?
[00:18:50] Speaker C: I mean, the biggest things that I look at, ensuring that we have the volume that we need and that we are sourced with the right people, is product mix, demand versus capacity. Right. So we can only build so many in a day, and we only have the capacity to build so many in a day. So from a scheduling perspective and a purchasing perspective, I have to routinely check those numbers. Right. Because if our demand gets higher than our capacity, we have to look to outsource or look for additional efficiencies within our plant to be able to increase our capacities. Or we have to really make sure that we're not over scheduling glass because if the glass is late to assembly, the assembly window or door is delayed, and then we have a delay to our customer. Right. So I guess that's another complexity that we really look at is how much of our available capacity are we utilizing with the demand that we have? Is that the right mix, or is there changes that needs to be made in either mix or efficiencies or outsourcing in order to make sure that we're successful, to get the glass to assembly.
[00:19:49] Speaker B: On time and it's not getting smaller and it's not getting less? No, we just keep adding and getting bigger.
[00:19:56] Speaker C: And yeah, you mentioned your crystal ball. So I work very closely with sales and operations planning, sales and operations execution, and we talk about, you know, all of those complexities, all of the constraints, all of the challenges, and, you know, forecasting the demand for a 100% custom business that is in the industry that we're in is very challenging. There's so many other things from microeconomics and such that influence home buying. R and R. Where are you investing your money? Right. So it has to be a very fluid and very flexible planning process in order to make sure that we're prepared to do what we need to do. Because you think based off all the market knowledge and all the history, you think ABC is going to happen. And I promise you, as soon as you hit the print button or what I now call the send button, because we do it all electronic now, that forecast is out of date and it changes. So you plan for abc, but you might get BCA and you might get def. Who knows?
[00:21:02] Speaker B: Right? Yeah. I mean, you can only do your best, right?
[00:21:06] Speaker C: Absolutely.
[00:21:07] Speaker B: And I think, you know, we've learned a lot through Covid, and we've learned a lot. And there's just so many really smart people here and a lot of wisdom and knowledge. And I think that's one of the things that makes PGT so unique, is that we do have a lot of control over the things that we can control. Like, if we can bring it in house and do it ourselves, we will. If it's better to outsource it, we will. But when those situations arise, we obviously maintain those good relationships. So.
[00:21:33] Speaker C: Absolutely.
[00:21:33] Speaker B: Well, this has been really interesting. Thank you so much for shedding some light on a topic I really didn't know very much about. You are very welcome and I appreciate your time. Thank you.
[00:21:41] Speaker C: Thank you.
[00:21:42] Speaker B: All right, have a great day.
[00:21:43] Speaker C: You, too.
[00:21:43] Speaker B: Okay.
[00:21:45] Speaker A: The Clear Impact podcast is brought to you by PGTI University. We are a part of Mitre Brands, a family of leading window and door brands united by our passion for quality and relentless pursuit of 100%. One of the missions of Mitre Brands is to unite and deliver the finest customer experience possible across the nation. Our window indoor brands deliver regionalized expertise and products. Backed by a national company. PGTI University is here to educate you, our listener, so that you can be a more informed consumer of window indoor products.
