Latest / The Inspired Stories Podcast / Servant Leadership in Manufacturing: Ed Determan's Approach at Pallet Service Corporation | Manufacturing Series
Transcript
- 0:04Welcome to another edition of the Inspired Stories podcast,
- 0:08where leaders share their experiences so we can learn from
- 0:11their successes and be inspired by how they've overcome
- 0:14adversity. My name is Anthony Kotaspodi and
- 0:17today's guest is Ed Dennerman, plant manager at Pallet Service
- 0:21Corporation PSC. They have been a trusted wood
- 0:25product supplier for over 50 years, offering new, recycled
- 0:29and remanufactured pallets along with custom crating and
- 0:33recycling services across multiple locations in Minnesota
- 0:37and Wisconsin. Now, Ed has been managing plant
- 0:40operations at PSC since 2011, overseeing safety initiatives
- 0:44and implementing efficiency projects that have boosted
- 0:47performance. Before joining PSC, he led
- 0:51shipping operations at Sealy and managed the lumber yard at
- 0:54Menards, gaining valuable experience in logistics and team
- 0:58building. Under Ed's guidance, PSC reduced
- 1:01lost time, injuries, facilitated a cutting edge inventory ERP
- 1:06system, and upgraded production equipment without extra labor.
- 1:11He also supervised a major plant remodel at Sealy, finishing
- 1:15ahead of schedule and demonstrating his leadership
- 1:18skills. Now before we get into all that
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- 1:49AD back benefits.com. All right, back to our guest
- 1:52today, the plant manager at PSC Pallet Service Corporation's Ed
- 1:56Determan. I appreciate you making the time
- 1:58to Share your story today. I appreciate you having me.
- 2:01Thank you. Absolutely.
- 2:03So, Ed, how did the opportunity to join PSC first come about?
- 2:10I was working at Sealy Tempurpedic.
- 2:15I was the shipping and receiving lead at that point.
- 2:19And the plant Superintendent, his name was John Roberts.
- 2:27He wasn't at the time, but shortly after he he became my
- 2:33mentor and we're still very close friends, but he got an
- 2:39opportunity to run pallet service, Maple Grove facility
- 2:44and within a month of him leaving Seeley and taking that
- 2:51role, he he poached me and brought me over as a supervisor.
- 2:57Gotcha. And so how many facilities does
- 2:59PSC have? We currently have 4.
- 3:03OK. And are you doing the same thing
- 3:05at each location or the services, the products a little
- 3:08bit different? It is a little bit different at
- 3:11each location. Each each location has something
- 3:16unique to itself. We have two in Minnesota and two
- 3:21in Wisconsin. The facility that that I run and
- 3:26operate, all we do is cut the components for pallets.
- 3:30So we don't actually build any pallets.
- 3:34And so you get the lumber in, you're cutting it into the right
- 3:38dimensions and then you're shipping it where?
- 3:42We're shipping it all over the mainly the Midwest.
- 3:45We go a little bit outside the Midwest, but a majority of it is
- 3:49the Midwest. We were originally back in 2011
- 3:53when we opened this facility, it was originally supposed to just
- 3:57be like a distribution Center for the other two facilities
- 4:00that were actually building pallets.
- 4:03And we quickly realized that we had more capacity than what we
- 4:09really needed to service those two facilities.
- 4:12So we started dabbling and selling to other pellet
- 4:15manufacturers in the area and that really took off and turned
- 4:18into a huge business for us. So if somebody is an outsider,
- 4:22I've never been inside a facility, it seems to me like,
- 4:26well, why wouldn't everybody just cut their own lumber and
- 4:30put it together? Clearly it's more complicated
- 4:33than that. It is you, it's not difficult to
- 4:36find and and buy the equipment. There's, there's a lot of
- 4:39different brands and manufacturers out there that
- 4:42sell pallet component cutting equipment.
- 4:48But the real trick is getting good and efficient at it because
- 4:53there's so little margin in the lumber itself that if you're not
- 5:00efficient at it, your labor costs are going to just swallow
- 5:03it all up. And so a lot of smaller pallet
- 5:06manufacturers, they, they just can't get efficient enough or
- 5:10keep it running long enough for it to pay for itself.
- 5:13And it's actually cheaper for them to go find the component
- 5:17somewhere else. It's really interesting to me
- 5:19because obviously there's extra freight involved, right?
- 5:23I mean, by the time the cut lumber gets to whoever's going
- 5:26to assemble it, there's been the freight of the raw lumber
- 5:29getting shipped to you and then you guys have to cut it and
- 5:33you've got your, you know, own margins to make there.
- 5:35And then there's the additional freight of now having to ship it
- 5:38out again. But the efficiencies, what I'm
- 5:40think I'm hearing you say the efficiencies that you guys are
- 5:43able to bring to the table and labor and I'm guessing also like
- 5:48lack of material waste makes this cheaper for folks to to
- 5:54just buy from you and do the assembly part themselves only.
- 5:58Yep. And then the third part to that
- 6:00pyramid is we have a sales team that are so good at cultivating
- 6:09relationships that they've been able to get into some bigger
- 6:13lumber mills that most pallet manufacturers can't get into
- 6:17because they're not big enough, they're not well known enough.
- 6:20So we've we've gotten into these mills and we built these
- 6:24relationships. And so we're we're able to bring
- 6:28in volumes of lumber that that most others aren't at, at
- 6:33potential cheaper prices. Are you guys impacted or likely
- 6:39to be impacted by any tariff talks that are going on?
- 6:42Yeah, yeah. You get this question a lot.
- 6:44Yeah, yes and, and no, it's, it's, we're, we're really just
- 6:49kind of riding the wave to see what's what's going to happen.
- 6:54It, it could benefit us because a lot of my competition for
- 6:58pallet componentry is out of Canada.
- 7:02And so that portion of it could potentially help us, but a lot
- 7:07of the raw material that we use comes from Canada.
- 7:10So I don't know if it's going to be a gain or a loss or a wash or
- 7:14or what. Just some uncertainty right now
- 7:17is sort of the best way to put it.
- 7:18Yeah. OK.
- 7:20So when you got poached from Sealy to come over to PSC,
- 7:24remind me again the the position that you came in at?
- 7:27I came in at the first shift, 1st shift Gunnail supervisor was
- 7:35my title. OK.
- 7:37And now you've worked your way up to plant manager.
- 7:40So you've correct, you're overseeing the entire shop
- 7:42operation. Yep.
- 7:45How many sort of steps along the way inside of PSC were there
- 7:50before you got to where you are today?
- 7:52So I was that, that first shift supervisor for about 8 months
- 7:58and pretty much the same time that I got hired was the same
- 8:03time that they opened the Little Canada facility and they just
- 8:06started bringing machinery in. And we're kind of trying to make
- 8:09it take off. And they had a, a hiccup with
- 8:17the leader that they had put in place and they needed to refill
- 8:22that spot. And so they, they offered me an
- 8:25opportunity to come over as the production manager.
- 8:30And at that time, it was just 8 employees.
- 8:33The, the building itself and the property was still owned by
- 8:38Drywall Supply and we were leasing from them.
- 8:43And then shortly after I got here that that relationship
- 8:47flipped to where they were leasing from us.
- 8:50We had bought the property they were leasing from us and then
- 8:52they eventually moved out a couple months later.
- 8:56And then once they moved out, that gave us a lot more space to
- 8:59be able to upgrade the production floor and start to
- 9:02grow that a little bit more. And within the first two years
- 9:09of being here, we went from those eight employees up to
- 9:14close to 3032. So it was a real rapid growth.
- 9:19And it sounds like that rapid growth came about with the
- 9:21realization that you didn't just have to supply these components
- 9:25to, you know, PSC sort of internally at the different
- 9:29locations there were you you had extra capacity and there were a
- 9:32lot of other folks out there that could benefit from what you
- 9:34had. Correct.
- 9:35Yep. And so you put a, a salesperson
- 9:39on, hey, let's start calling people, let's start finding the
- 9:42folks that maybe like our competitors that you know.
- 9:45That was, that was kind of the unique part was we, we've been
- 9:51dabbling in it long enough that that we really didn't need to go
- 9:56out and pound doors. There were people asking for it
- 9:59and we were just trying to catch up with the curb to fulfill it.
- 10:03And it wasn't up until a couple of years ago that we actually
- 10:07got to the point where we said, OK, we we actually need to go
- 10:10out and aggressively find business.
- 10:12Wow, you'd spent that much time just trying to catch up with the
- 10:16demand that already existed? Correct.
- 10:18That's fascinating. And so now in the last couple of
- 10:21years as you're going out to look for new business, what does
- 10:24that process look like for you guys?
- 10:27I, I, I can't really speak to it a whole lot.
- 10:30I, I, I deal with sales from a capacity standpoint and telling
- 10:37them what we, what we can achieve and, and kind of where
- 10:40we are in that plan as far as filling or not filling it.
- 10:44But from their end, I know that we've, we've definitely added to
- 10:51our sales team the last couple of years And I know that we have
- 10:53a couple of salesman that didn't necessarily grandfather into
- 11:00accounts. They were basically hired to go
- 11:03out and cold call and start knocking on on doors and and
- 11:08expanding a little bit because like I said, we're we're mainly
- 11:11in the Midwest, but we're starting to dabble in in and
- 11:14outreach to the rest of the United States.
- 11:18You know what, actually, maybe we'll take a step back real
- 11:20quick and I presume that everybody listening understands
- 11:23what a palette is, but maybe that's not a safe assumption to
- 11:27make. Can you just give a real basic
- 11:29definition of what what a palette is, what it's used for?
- 11:32Yeah. So there's really, there's
- 11:36really just a handful of different types of of what we
- 11:39call a standard pallet. The the most common is a a GMA
- 11:44and that is basically a 40 inch by 48 inch pallet that has three
- 11:49runners and then a bottom deck. And that's there's multiple
- 11:55different grades of a GMA, but that is typically what I would
- 12:03say 60% of manufacturers are using to ship their products on
- 12:09within that, that class of pallet.
- 12:12You get into the, the recycle. So some are buying new and
- 12:17you're rebuilding to new and then some are are OK with
- 12:21reusing older pallets. And so that's where you get into
- 12:26fixing damaged boards and then creating it based on how bad
- 12:31that pallet really is. And there's different price
- 12:34points to each. So basically it's a platform
- 12:38that people can use to move their products around.
- 12:43It's a sort of a, a shipping platform so that it's easy for
- 12:47people to get a tow motor forklift underneath and move
- 12:50this heavy collection of items, put it onto a truck or you know,
- 12:53onto some shelving, etcetera. And so you mentioned that you've
- 12:59got new and you've got sort of these rebuilt is in what
- 13:03circumstances would somebody say, oh, I have to have new, I
- 13:06don't want rebuilt 'cause it's not like, correct me if I'm
- 13:10wrong, like these aren't going to, they're not sitting out at
- 13:14trade shows, right? There's not like a, a cosmetic
- 13:17appeal to these. This is like forming.
- 13:19This is like function. Correct.
- 13:21But there definitely is a line or a market that says we, we do
- 13:29need it to, to be new and we need it to be clean.
- 13:34So a lot of food grade type of industries or medical type of
- 13:41industries, they are very particular about the, the type
- 13:45of pallet that they get. You can't, you can't have bark
- 13:49or wane from the board, can't have mold.
- 13:53A lot of them, I mean, they don't even want to see any
- 13:55sawdust from the the the cutting of the material.
- 14:00And we've had customers in the past that are have been so
- 14:03detailed about that, that they would lay out a white sheet on
- 14:07the floor and the dock as they're unloading our stack of
- 14:10pallets and they'll take the first couple and just drop them
- 14:14on that white sheet to see how much dust actually falls off.
- 14:18Wow, I had no idea. I I think of pallets and the
- 14:22environments. I've seen them.
- 14:23They're rugged, they're dirty, they're getting the job done.
- 14:25But nobody's taking a white glove to him.
- 14:28So it's interesting to hear that.
- 14:30Yeah, of course, there's a market for that kind of thing.
- 14:32Food. Medical, right?
- 14:33Yep, and then the other end of the spectrum, we do business
- 14:38with some sod farmers that you could have mushrooms growing on
- 14:47the side of the pallet. They don't care as long as
- 14:49they're paying the absolute cheapest price.
- 14:51Yeah, Yeah. That's good to be able to
- 14:54service those different ends. And so as you're manufacturing
- 14:57the boards for sort of these different use cases, are there
- 15:01different parts of your manufacturing facility where,
- 15:06OK, hey, this is where we do sort of the the medical grade or
- 15:10is that you can kind of process them all on the same machinery?
- 15:13No, you can process them all on the same machinery.
- 15:17OK, Yeah. Tell me if I've got this right.
- 15:24You've LED efforts to reduce lost time injuries to just a
- 15:30single one over the course of three years among 120 employees.
- 15:36Is that correct? The short answer is yes.
- 15:44I was tasked about six or seven years ago to develop the, the
- 15:50company's safety committee and safety culture.
- 15:55And so through doing that at my facility, we went a full three
- 16:03years without any type of recordable injury.
- 16:07I can't speak for the other two facilities.
- 16:09I'm not sure. But I do know that it it made a
- 16:14vast improvement over what we were doing and it was in an
- 16:18effort of trying to make sure that we were incentivizing the
- 16:22employees to do the right thing. Can you get into more specifics
- 16:27of what that looked like? There are safety programs out
- 16:34there that that basically say if you're safe for the whole year
- 16:39and you don't get injured, then we're going to give you some
- 16:41type of a bonus for that, which incentivizes the complete wrong
- 16:45behavior. What an employee's going to do
- 16:47is get hurt and then try to hide it so that they can still get
- 16:52their bonus. And so the effort with the
- 16:58culture that we wanted to build was trying to incentivize, but
- 17:04do it in a way that the employees are going to think
- 17:07forward about how to prevent injuries or what could
- 17:10potentially become an injury and take care of it before whatever
- 17:14happens. And So what does that look like
- 17:19in a practical sense? How do you sort of align
- 17:22everybody's goals so that you're keeping the injuries down, but
- 17:26you're not incentivizing people to to hide it?
- 17:30Well, from an operational standpoint, we, we still look at
- 17:34the three major metrics of recordables and I'm sorry of
- 17:46first reports, recordables and then indemnities.
- 17:50But then from the employees standpoint, we're, we're
- 17:57incentivizing off of what we call a radar and a near miss.
- 18:01So a near miss is, is defined as something that that happened.
- 18:08Luckily nobody got hurt, but the incident happened.
- 18:12And then we, we want you to report it.
- 18:14We want you to explain everything that happened.
- 18:16We want to do a little bit of a, an investigation to see what
- 18:20kind of led up to it. And then we want to document it
- 18:22so that hopefully we can look back and make sure that we're
- 18:26taking steps to make sure it doesn't happen again.
- 18:29And a lot of times the example that that I will use for this is
- 18:37if you have two production cells next to each other and somebody
- 18:41needs to use an extension cord for, for one of their tools, but
- 18:47the closest outlet basically runs through the other cell and
- 18:51then someone trips on the cord, right?
- 18:54So it happened. It could have been serious.
- 18:56Luckily it wasn't. But then what do we need to take
- 19:00for action items to make sure that we don't have that problem
- 19:03again? And then the the other portion
- 19:06of it we call radar. So we want you to recognize,
- 19:18assess. Oh, I'm blanking.
- 19:26I'm sorry. It's so ingrained you do it
- 19:29every day without even thinking or pulling the the acronym from
- 19:33your head. But you you know what the steps
- 19:35are. But more than anything, it's
- 19:38it's looking forward to to catch things before they happen.
- 19:42And, and my example of this is if, if there's a stack of, of
- 19:48lumber out in the yard that's 5 units high and you see that it's
- 19:52really leaning heavily, before you race in trying to fix it, we
- 19:58want you to stop, assess what you're doing.
- 20:01Think about it. Maybe the right answer is to
- 20:04have three different forklifts go and assist, you know, to make
- 20:09sure that the 1 doesn't get stuck while you're trying to get
- 20:11put. You know, just put a little more
- 20:13thought into just racing in and doing something about it and
- 20:18then take care of it and then record the results after.
- 20:23Yeah, And this has been incredibly successful.
- 20:27I mean, you've taken incidents down to almost 0, which in an
- 20:31environment like yours, I don't have standard industry metrics,
- 20:35but that sounds really impressive.
- 20:38Now let's talk about the inventory ERP system that you
- 20:44helped to implement. That sounds like a a major
- 20:47undertaking. What what were some unexpected
- 20:49challenges you faced in that? Well, first of all, there really
- 20:56isn't an inventory system out there for what we do, right.
- 21:00And so we found the closest thing that we could at the time,
- 21:04this was getting close to 9 years ago, I think 9 or 10 years
- 21:08ago. But it's, it's designed for a
- 21:12pallet manufacturer. So it, the, the major function
- 21:17around it is the, the bill of material.
- 21:22So it's, it's set up to say for this pallet, I need this many
- 21:27boards and it, it helps track inventory based on the process
- 21:38of those pallets. But our problem was we do more
- 21:41than just pallets. In fact, 60% of what we did at
- 21:45the time was just cutting boards.
- 21:47So we needed to go from dimensional board to cut stock
- 21:51board, not to cut stock to pallet.
- 21:56So luckily we, we got in the infancy of the CRP system.
- 22:01It's called Palmate and they, they had a very open forum with
- 22:06us and they, they, they took a lot of feedback from us and, and
- 22:13we helped kind of develop what their software is today, which
- 22:18that does a lot more around boards and lumber and volume in
- 22:25general. But it, it gave us most of the
- 22:31things that we were really looking for because before we
- 22:34had an ERP, we were doing everything paper and pencil.
- 22:37So it gave us the ability to do true physical inventories.
- 22:42It gave us the ability to verify what we were loading and then it
- 22:50gave us the ability to track capacity.
- 22:55And so, you know, a lot of times when I hear people talk about
- 22:58upgrading their software, it's going from one piece of software
- 23:03to another piece of software. In your case, it was you were
- 23:06going from paper and pencil to software, which, you know,
- 23:11there's different challenges in both systems, but in your
- 23:15environment now you're having to teach people how to use software
- 23:19for this purpose for the first time, right?
- 23:22Yeah. And there was even a period of
- 23:23time where and you you got to have the right type of hardware
- 23:28to run the software and not having anything established for
- 23:32that, we really didn't know what the hardware was that we needed.
- 23:35So we spent probably six months just trying different tablets
- 23:40and different computers and different scanners.
- 23:43And until we, we kind of came up with what we thought was, was
- 23:47going to work. And, and then again, through
- 23:49attrition over a year, 2 year period of time, we, we learned
- 23:53that the, the dust was too harsh on the printers or the scanners
- 23:57or, and it, yeah, it just was a huge evolution of trying to get
- 24:03all of that to, to function together.
- 24:07Tell me about the $220,000 trim. Saw that you upgraded and
- 24:14installed without needing any more labor.
- 24:19So the original trim saw that we had was kind of a mess up from
- 24:29the start. So when, when the owners ordered
- 24:35it, it was supposed to be able to cut a 20 foot board and when
- 24:41it showed up, the longest board we were able to cut was 18 foot.
- 24:46The total length of the saw was 20 foot.
- 24:49And at that time we, we just didn't have the financials to be
- 24:54able to say well, take it back and fix it and like we needed to
- 24:57get started today. So we put it in place and, and
- 25:02the best way to cut a 40 inch board is is a 10 foot board
- 25:09based on what you can put through the saw.
- 25:11We were hoping to be able to use a 20 foot board and get 540 inch
- 25:15boards, but now the best we could do was a 10 foot board and
- 25:18getting 340 inch boards. So a couple of months after I
- 25:25got involved over here at at the facility, I, I just kept seeing
- 25:30this 8 foot of saw that we were never using.
- 25:34It was just plank and so we we were also cutting the stringers
- 25:41or the side panels for pallets. And in order to do that we would
- 25:46have to stop cutting the decking, do a full change over
- 25:50of all the machinery and then start cutting the stringers.
- 25:54But the stringers came out of an 8 foot material.
- 25:57And so I found some old conveyors that we weren't using
- 26:02anymore and we kind of pieced together our own little
- 26:05contraption behind the trim saw and we started cutting the 8
- 26:08foot boards on that empty side of the trim saw.
- 26:13And we were able to do both products at the same time.
- 26:17And we did that for two years and it, it turned into such a
- 26:24staple of what we do. We said, OK, we we need to order
- 26:27a new saw and it needs to have the ability to do what we're
- 26:33doing now. But we also want to make sure
- 26:35it's got all the other features for the employees so they don't
- 26:38have to be bending and twisting and lifting.
- 26:41And because that's what that person on the other side of the
- 26:43saw was doing, they didn't have a deck feeding them.
- 26:49And so that's kind of where where that purchase came in.
- 26:54It's really clever the, the interim stuff that you guys kind
- 26:57of came up with to make better use out of the equipment that
- 27:00you had. Ed, how would you kind of
- 27:04describe your, your management style?
- 27:07You're, you know, you're, you're managing a plant.
- 27:09You've got, you know, a lot of workers there.
- 27:13You know, it's a, it's a, I'm going to guess sounds like a
- 27:15tough environment. You know, where you're, you
- 27:17know, you're doing physical things, you're moving stuff
- 27:19around all day. How do you kind of keep your
- 27:23arms around everything, keep everybody moving in the same
- 27:25direction? Well, first and foremost, I'm a
- 27:30huge subscriber to servant leadership.
- 27:33I very much so believe in being hands on and being the type of
- 27:39leader that would never ask you to do anything I wouldn't do
- 27:41myself. So I don't have to do it as much
- 27:45as I used to, but there are occasions where if someone calls
- 27:49in or or something like that, where there might be an open
- 27:55piece of equipment that I can go run for a couple of hours.
- 27:58Not necessarily because I have to, but because AI enjoy it.
- 28:03I like getting up from the desk and doing some physical labor
- 28:07once in a while, but be it, it really helps tie the back of the
- 28:10house in the front of the house together.
- 28:12They really like to see me come out and do some of that once in
- 28:14a while. When you think about what it
- 28:19takes to attract and retain a good workforce, what are some of
- 28:26your approaches? What have you found works to
- 28:29find good folks, and once you've found them, hold on to them?
- 28:33Yeah. That, that's definitely
- 28:37developed and changed over the course of time here.
- 28:41When when we were really starting up, I used a lot of
- 28:45temp services and it was basically all about bodies, like
- 28:50if they have a pulse, send them in and that has definitely since
- 28:56changed. We about seven years ago as a
- 28:59company, we got into traction. I don't know if you're familiar
- 29:03with that. Gina Wickman.
- 29:04Yep, correct. And the idea of the right
- 29:08person, right seat and hiring around core values and and
- 29:15really making sure that that they're the right people has
- 29:18made a huge difference because three or four years ago our
- 29:23retention rate was greater than 40% and last year that dropped
- 29:29to 25% and it's still dropping. And I attribute that 100% to
- 29:36taking the time vetting the person, making sure that that
- 29:39they align with our culture and our core values before we bring
- 29:44them in the door. How'd you do that?
- 29:47It's a particular question that you like to ask that kind of
- 29:50pierces through the veil. I don't do a lot of the
- 29:53interviewing anymore. I, I'm trained all of my
- 29:57managers and supervisors to be able to do a portion of that,
- 30:01but I do sit in on most of them towards the end of the interview
- 30:05if this is really somebody that, that you're entertaining
- 30:08bringing on. And my focus is 100% on, on our
- 30:135 core values. I asked them very broad
- 30:19questions just just to see what their grasp of the core values
- 30:25are. And so, for example, our first
- 30:28core value is balanced. We we want a healthy balance of
- 30:34faith, family and, and work. And even even that there's been
- 30:42a learning process to stay. Everybody's going to have a
- 30:46different definition of what balanced is for them.
- 30:49For me, I have a family, I have children.
- 30:53And so balance for me is being able to get to my kids football
- 30:57game, you know, but there's other people that don't have
- 31:01kids and maybe balance for them is being able to sit all
- 31:05Saturday long and read a book. And so it's just understanding
- 31:12that that there is going to be a different definition of balance
- 31:15for everybody, but making sure it falls within the scope of,
- 31:20yeah, you know, I'm really looking to make as much money as
- 31:24I can so that I can buy a Mustang.
- 31:29Well, maybe that's not going to be the best fit for us because
- 31:37because this doesn't. Seem to align with your values.
- 31:40Correct. You're you're only interested in
- 31:43being here for the money. You're not interested in being
- 31:45here for a career. Gotcha.
- 31:49As you think about PSC, your location as well as the other
- 31:53ones, what you think sets you apart from the other companies
- 31:55out there doing similar things? Like the company in general.
- 32:02Yeah, correct. So the first thing is, is
- 32:06definitely the emphasis around relationship building.
- 32:13So customers, vendors, employees, that that's on our
- 32:18vision traction organizer and it, it, it's what we all focus
- 32:23on is, is building those relationships and delivering on
- 32:27promises that we've made and just upholding as much of that
- 32:33value as we can. So the, the, the purchasing side
- 32:38has been built around those relationships and, and has done
- 32:44some, you know, marvelous things for our ability to buy.
- 32:50And the pallet industry in general is, it's very
- 32:55interesting from the standpoint of, I've never been in an
- 32:59industry that's so open. These, these pallet
- 33:03manufacturers, they, they go to conventions together and they,
- 33:07they invite each other into their facilities and show each
- 33:10other what they're doing. And there's been a number of
- 33:13times that maybe we bought a piece of equipment that we don't
- 33:17already have and we're having trouble with it.
- 33:20And the owner will say, well, I know so and so runs one of
- 33:23those. Let me call them and see if we
- 33:24can go in and get some tips and tricks.
- 33:26And it usually happens they, you know, openly do that kind of
- 33:31stuff. So it's, yeah, it's.
- 33:35It sounds more like a brotherhood than a sort of a
- 33:37competitive pit, you know? Yeah, very much so.
- 33:42That's amazing. I, you know, kind of going back
- 33:44to something you said a moment ago, and I'm curious where your
- 33:47inspiration for being a big believer in servant leadership
- 33:51came from. I think it's something that has
- 33:58always been ingrained in me my that that's kind of the type of
- 34:03person that my father was very hands on.
- 34:07I'm not afraid to jump in and do anything.
- 34:11My mentor somewhat the same way, but he taught me more the, the
- 34:22outward focused side of it so that you're, you're more
- 34:26cognizant of when you're doing it and why, right.
- 34:29So if we have a like an all hands meeting where we're we're
- 34:34going to bring in food for everybody, making sure that it's
- 34:37something that you can stand up there and serve them, you know,
- 34:41kind of putting a real definition to it.
- 34:46I like that you've mentioned. Do you know Wickman?
- 34:51His his book and his framework Traction EOS has been super
- 34:55helpful for you guys. Are there any other books,
- 34:59podcasts, any other frameworks that maybe have been really
- 35:03helpful to you that our audience might benefit from?
- 35:09I I've been through pretty much the entire traction series.
- 35:13The the newest one the people book is is really good from
- 35:18Building a culture and understanding that right person,
- 35:21right seat. I just recently finished It's
- 35:27your ship. I'm blanking on the.
- 35:37What's it about? What's sort of the core concept?
- 35:42Captain Michael ABS off and it's yeah.
- 35:50And it's basically his story of being in the Navy, being given
- 35:56his own ship to command and then just the the different
- 36:01techniques that he used to try to win over the crew.
- 36:05He did a lot of one-on-one interviews to get to know
- 36:07people. And then he also did some kind
- 36:11of inspiring team building type of stuff that for being on a
- 36:16ship out at sea was was pretty outside the box thinking.
- 36:22So yeah, it was. It was a really good read.
- 36:24Yeah, Ed, shifting gears now, I'd like to hear about a serious
- 36:29challenge that you've overcome, whether it's something personal
- 36:33or professional. What was that?
- 36:36How did you get through it and what did you learn?
- 36:42So again, I'm going to go back to the traction journey.
- 36:45When I first started in the plant manager role, my belief
- 36:49was that I needed a team that fought like me and acted like
- 36:55me. And that was that was how I was
- 36:58going to succeed. And after a couple years, I
- 37:02realized and, and through starting traction, I really
- 37:04realized that there's probably some benefit to diversity,
- 37:09right? So maybe the next time I fill a
- 37:12leadership spot, instead of looking for somebody that is
- 37:15going to be hands on, that is going to be the first one to
- 37:19jump in and get dirty and help. Maybe what I really need is
- 37:23somebody that thinks differently than I do.
- 37:26And going into those interviews, I I felt like the more
- 37:32uncomfortable I was with somebody, potentially this was
- 37:35going to be the the best fit. Interesting.
- 37:39So I did eventually hire a manager that was very different
- 37:44than myself, was very different than most of us at Pallet.
- 37:50And he was, he had, he had some, some quirks, right?
- 37:54And it was it was difficult for him to to understand the culture
- 38:03that was built. It was difficult for me to help
- 38:06him overcome some of his his. To.
- 38:19Just to, to communicate with people because his communication
- 38:21style was completely different. But the attributes that he did
- 38:25bring, one of our bigger goals was to achieve 95% inventory
- 38:32accuracy. And we were light years away
- 38:35from it. But that was because I, I'm not
- 38:38a numbers type of person. I can't sit down and just look
- 38:43at item audit trails and crunch numbers for hours, figuring out
- 38:49where everything went awry. And that was his thing.
- 38:53Like that's what he was good at. So we did act, we, we did get to
- 38:59that peak and we've been there for a while.
- 39:03But the struggle was keeping, keeping the, the team together,
- 39:11more or less. I had a number of meetings with
- 39:15my managers where they, they just didn't get long because
- 39:18this guy was so different than them.
- 39:21And that led to a lot of frustration and just a, and
- 39:24there was a point where I didn't want to hold meetings anymore.
- 39:26I didn't want the team together anymore and it it did
- 39:31unfortunately get to a point where I had to make a difficult
- 39:34decision and say this isn't healthy for anybody.
- 39:37Even though I'm getting really good benefits from you I it's,
- 39:43it's just not a good fit. Yeah.
- 39:45And I think that story there says a lot about the importance
- 39:48of culture, which sounds like it's super important to you guys
- 39:52as well. I mean, hats off to you for
- 39:55trying something different kind of outside your comfort zone,
- 39:59going where, you know, it was a little bit unusual for you and
- 40:03there were some gains from it. I mean, life's complicated.
- 40:06Not everything is all good or all bad.
- 40:09And so, you know, there were some gains for that process.
- 40:11And ultimately, you know, a change had to be made because
- 40:15and there's there's nothing that tops culture.
- 40:18Culture is. Well, it's, it's, it's what I
- 40:22think great businesses are built on.
- 40:24And so have you been able to find somebody now that that kind
- 40:27of fits that role and helps with the culture or did you did you
- 40:30just benefit from having the new systems in place already that?
- 40:35Exactly had the shape, the system that he built the, the
- 40:40team, the, the, the departmental team that he built was
- 40:44fantastic. And so the the person that I
- 40:48replaced him with is, is really just sitting back and watching
- 40:53it run. So yeah.
- 40:59Talk to me, Ed, about daily practices.
- 41:02Do you have any habits, rituals, things that you like to do every
- 41:06day that kind of keep you centered and on track?
- 41:10I, I really don't, a typical day for me, I'll, I'll, I'll get in
- 41:19around 7, pull up my reporting, take a look at what happened
- 41:23last night, just kind of make sure everything's on track.
- 41:26And then I'll I'll get out and about and try to greet everybody
- 41:30that I can and then just see where the day goes from there.
- 41:39What's something you do for fun, Ed?
- 41:45My number one hobby and passion is restoring antique tractors.
- 41:53I also, I'm, I'm very involved in my kids lives.
- 41:57So I have a son that's 16. I've been his football coach for
- 42:02the last five years. So we have a youth associated
- 42:08football organization in our town.
- 42:10So it's not through the school. So yeah, I've coached him and
- 42:14his buddies for for five years and yeah, he just loves
- 42:19football. And then my whole family is very
- 42:24big into scouting. So I've run the local Cub Scout
- 42:30group for 10 years. Three of my 4 kids are are in
- 42:36the the scout troop. My oldest is getting very close
- 42:41to Eagle. Yeah.
- 42:43That's awesome. And then they, they have some
- 42:46really, really cool leadership courses for adults that, that go
- 42:54outside of the scouting world and really kind of overlap with
- 42:58the business world. And a lot of the, the benefits
- 43:01that you get from that training are, are much cheaper than
- 43:03anything you would find in in the business world.
- 43:05So I went through some of their adult leadership training and
- 43:10then now I've gone back and I'm I'm actually helping with the
- 43:15courses as as part of the staff. Oh, wow.
- 43:18And is this training available to anybody or do you have to be
- 43:22kind of involved in the Boy Scouts network?
- 43:25You do have to register with the BSA, but you don't necessarily
- 43:29have to have a kid in scouts. To do it.
- 43:32OK, how would somebody find out more about this?
- 43:35It sounds really intriguing. Find your local Scout
- 43:40organization, but the course is a world recognized course called
- 43:47Wood Badge. Sorry, it's called What badge?
- 43:50Wood Badge. Wood Badge.
- 43:51OK. Yep.
- 43:53And what do they take you through?
- 43:54What? What's the lesson?
- 43:56A lot of it is team building. It's so Baden Paul.
- 44:03When he developed the scouting program in the 1900s, it was
- 44:09based around the patrol method that the military used.
- 44:15So it, it really the fundamental of it is to teach you what that
- 44:23patrol method is supposed to look like, but doing it by using
- 44:28the edge method to where you're, you're experiencing it as if you
- 44:34were a scout. So there's there's team building
- 44:41activities that take place, there's classroom presentations
- 44:46that are given around dealing with different things like
- 44:51diversity, problem solving, just some, some really good
- 44:59leadership stuff. They take you through forming,
- 45:04storming, norming and performing and they, they connect that by
- 45:11using some of the different like team building movies.
- 45:15So like October Sky or Remember the Titans, where you can really
- 45:21clearly see the four steps. And it, it helps give you an
- 45:27understanding of how that whole process works and, and that it's
- 45:31not just done when you get to the performing portion, but as
- 45:38your team continues to grow, you're going to go through the
- 45:40phases again and again and again.
- 45:44So that sounds great. It sounds like you're a busy guy
- 45:48too. Outside of work. 4 kids football
- 45:50coach, you know, scout master refinishing antique tractors
- 45:56like what? What is that about Like are are
- 45:58you trying to like use these in the field?
- 46:01Is are you like showing them what?
- 46:03Tell tell me more. Yep, there's, there's shows
- 46:06throughout the state and throughout the country that
- 46:09typically in the very beginning of fall is when most of them
- 46:13happen and you can bring your tractor out and, and show it.
- 46:19And the, the most of the shows have a theme based on what brand
- 46:27they're, they're going to show for the year.
- 46:30My, the brand that I'm partial to is Minneapolis Moline.
- 46:36They're, they were based out of Minneapolis from the early 1900s
- 46:42through 19, late 1960s. And it kind of ties back to the
- 46:49the manufacturing thing because at one point they were one of
- 46:51the largest manufacturers in Minnesota, but.
- 46:56Is that why you're partial to them?
- 46:58They're sort of the local guys. I'm actually partial to them
- 47:01because that was the first tractor that I worked on was a
- 47:05Moline. It's what my, my dad and my
- 47:06grandfather had bought it together 2 years before I was
- 47:10born. And so we went through the
- 47:15process of restoring it in 2015. That created a really a great
- 47:21bond with my, my father and I. My grandfather had already
- 47:24passed by that point, but just, he was, he was so excited to see
- 47:31that thing run again. And, and it, it didn't look that
- 47:35nice when they had purchased it. So he was very proud of it.
- 47:39And, and that really got us into, hey, let's go find some
- 47:42more of these to do. And then let's, let's start
- 47:46travelling to some of these shows.
- 47:48And it got to the point where we're doing four or five shows a
- 47:51year. And then there's a lot of like
- 47:54minded people at those shows that you get more and more
- 47:59opportunity to do things sold. Some of my tractors have been
- 48:02featured in magazines. I, I've purchased a couple of
- 48:10project tractors just because you, you get to talking to
- 48:14people and they might have something that they don't want
- 48:17anymore and, and you get it for a really good price.
- 48:20So yeah, it's just, it's a blast.
- 48:23Plus my son's, well, my older son took a, a huge interest in
- 48:30it when we first started. And so grandpa bought him a
- 48:32tractor and, and it, it, it has kept him away from tablets and
- 48:37video games and, and kept him active in something that doesn't
- 48:44involve any of that, which I thought was fantastic.
- 48:47You've. Cracked the code, but what?
- 48:49What every parent's trying to figure out?
- 48:51How do I get my kid away from the screen?
- 48:53It's good for you. Yeah, write a book about that.
- 48:56Right. I'm curious, Ed, if you would
- 49:00have much insight on this kind of what the future growth plans
- 49:04are for Pallet Service Corporation.
- 49:06Is this new locations? Is it just more customers
- 49:10servicing out of the same spots, new services?
- 49:13How do you guys think about this?
- 49:15Yeah. So we did open a new location
- 49:19about 18 months ago a little bit further east in in Wisconsin and
- 49:26it was it was a big facility. So it's you could take the three
- 49:31facilities and the land that they sit on and you can fit them
- 49:36all in this one. Wow.
- 49:38Yeah. So it's it's big.
- 49:40We have 5 separate buildings on that property.
- 49:44All of them are bigger than the one that I operate out of.
- 49:48One of them we put in sighing equipment to basically do the
- 49:52same thing that I do here. In another we put in a couple of
- 49:57the automated pallet building pieces of machinery and and that
- 50:02whole initiative is to really start driving a little bit
- 50:05further E than what we have been plus cut out some of the freight
- 50:10that we've been paying to get our product shipped.
- 50:16Another big point of emphasis is our our non processed material.
- 50:22So when we bring in material from the mills, if we have
- 50:28excess volume, we'll we'll sell it to crate manufacturers,
- 50:31pallet manufacturers that without processing anything.
- 50:36And so trying to grow some of that.
- 50:42But yeah, we're we're definitely in a growth mode.
- 50:45And I'm going to guess this new facility since just opened 18
- 50:49months ago is still kind of ramping up to where their
- 50:52production can be. Yep, absolutely.
- 50:55Yeah, lot, lots of lots of room for exciting growth there.
- 50:58That'll be fun to follow. And if I were to talk to you a
- 51:02year from now, what's something you would hope to be
- 51:04celebrating? I would be creeping up on my 15
- 51:12year anniversary with pallet, so I'd be looking forward to that,
- 51:20yeah. Beyond that, I guess I don't
- 51:21really know. Obviously you enjoy working
- 51:25there. I mean, you, you've been there a
- 51:27long time and you have glowing things to say about the
- 51:31environment. What specifically about it do
- 51:33you think appeals to you so much?
- 51:37It, it's mostly the, the culture and, and the family, the, the
- 51:46winners, the owners of pallet service are amazing people.
- 51:51They're super involved. They, they go above and beyond
- 51:55all the time. And it's, it's, it's, so it's,
- 52:01it's almost a relief to, to know that, that that's the type of
- 52:07people that you're working for. And then beyond that, it's, it's
- 52:13the culture that we built. And, and I say we, because it,
- 52:18it, it, it took our entire leadership team, it took the
- 52:21winners, it took, you know, all of us to do it.
- 52:24But it's, it's really evolved into a, a wonderful culture.
- 52:29And then the industry is, like I said before, it's very unique.
- 52:36You get the opportunity to talk to a lot of very interesting
- 52:40people and see a lot of really cool things.
- 52:45The industry itself I think is probably going to migrate a lot
- 52:51heavier towards automation and and as that evolves, it's it's
- 52:57going to be fun to see what it all looks like.
- 53:03That's actually a question I kind of like to to wrap up the
- 53:05show with. And so I'll ask some follow up
- 53:07questions on that. But before I do, I want to do a
- 53:09couple of things. First of all, I want to invite
- 53:11all our listeners to hit the follow button on their favorite
- 53:14podcast app so you can continue to get more great interviews
- 53:19like we've had today with Ed Detterman of Pallet Service
- 53:21Corporation. And I also want to let people
- 53:23know the best way either to continue to follow your story or
- 53:27to get in touch with you directly.
- 53:28What would that be? It would probably be LinkedIn.
- 53:36OK, we'll, we'll include the link there.
- 53:39But for those folks who are listening, Ed's last name
- 53:42Determan is spelled DETERMAN. So it kind of looks like deter,
- 53:48man. That's how you can find him.
- 53:51Just search for Ed Determan on LinkedIn with Pallet Service
- 53:55Corporation. So yeah, and I, I kind of want
- 53:57to go into a little bit of what you were just saying there, kind
- 54:00of what the the future of the industry looks like.
- 54:03You're talking about more automation.
- 54:06Are we talking like full on robots?
- 54:08Are we talking AI? Like what?
- 54:11What's the the landscape look like?
- 54:13Yeah, it's, it's probably a combination of both.
- 54:16I think the pallet industry in general has been very lacking
- 54:19with automation compared to where a lot of other
- 54:23manufacturers have gone. Labor I think continues to be a
- 54:29problem for everybody in in the industry.
- 54:34It's it's not getting any cheaper.
- 54:36It's depending on the pool that you're drawing from the, the
- 54:41quality of person isn't necessarily getting any better.
- 54:45And it's, it just continues to be a problem.
- 54:49And really I think automation is, is ultimately going to end
- 54:55up being the fix for it. There is, there's a minor amount
- 55:01of automation that exists today. A lot of the machinery that we
- 55:10used to cut the wood, the the process of the board being taken
- 55:14through the saw is automated, but you still have to have an
- 55:16operator there to push a button or know what to do if there's a
- 55:21jam or, or something along those lines.
- 55:28We've seen some, some newer mechanical automation with being
- 55:35able to dismantle a pallet, which was, was probably the most
- 55:38dangerous operation there is when it comes to pallets, is
- 55:42taking an old pallet and dismantling it.
- 55:46The the old practice was basically you had a bench
- 55:50platform that had a band saw blade that ran between 2 tires
- 55:55and you would take the pallet and push it through the band saw
- 55:59blade to cut the nails. Oh wow.
- 56:02Yeah. And everything was open and it's
- 56:04very on guarded, very, very dangerous process.
- 56:07And within the last, I'd say probably five to seven years,
- 56:13they've developed some mechanical arms that will grab a
- 56:17hold of the pallet with a vacuum and it'll run it through that
- 56:22same saw to get it all cut apart.
- 56:25And then it'll drop all the components and nobody needs to
- 56:28be near it while it happens. And a saw is still more
- 56:32efficient than just trying to pull the nails out or to try it
- 56:35apart. OK, absolutely.
- 56:39And so where are you guys in sort of this automation
- 56:44conversation thought process? We're definitely more on the
- 56:51the, the board or the the cut stock side then we are the
- 56:54pallet side where we want to try to take out some of the the more
- 57:02laborious manual laborers. Like when we get done with a
- 57:06unit of boards, somebody has to put strapping around it and, and
- 57:11prepare it to be able to, to go onto the truck and ship.
- 57:16And there is some equipment out there now that will automate
- 57:18that. And we'll, we'll do that in
- 57:20repetition. So we're, we're dabbling a
- 57:23little bit in that. It's, it's a very physical job.
- 57:31These guys out on the production floor work hard and they
- 57:35definitely earn every cent that they take home.
- 57:39And it does leave U.S. Open to injury and things like
- 57:45that in the future. So there's there's just a ton of
- 57:48upsides for for trying to get some, some of it automated and
- 57:51and take the person out of it. Yeah, that's going to be
- 57:55exciting to follow. And it very much falls in line
- 57:57with all the safety things we were talking about you guys are
- 58:00committed to at the beginning of the interview.
- 58:03Ed Dieterman, I'm going to be the Determan.
- 58:05Sorry about that, Ed Determan, I want to make sure I get that
- 58:09correct. But Ed, I want to be the first
- 58:11one to thank you for sharing both your time and your story
- 58:14with us today. I really appreciate it.
- 58:16Absolutely. It's a pleasure being here.
- 58:18Folks, that's a wrap on another episode of the Inspired Stories
- 58:21podcast. Thanks for learning with us
- 58:23today.