Technology Is Reshaping What It Means To Run A Timber And Building Materials Business Successfully

The timber and building materials industry is positioned to leverage technology in creative and practical ways that make business processes easier to manage and help boost top and bottom lines. With technology in their corner, builders merchants can turn lost time managing data in multiple systems into a singular, streamlined, cohesive investment that expands sales opportunities by modernising old static offers with dynamic promotions, loyalty programs, item merchandising, and in-house marketing and design services.

It’s a common misconception that technology solutions are too expensive for independent merchants, and the truth indicates its bad business NOT to explore further digitalisation and foundational technology investments. Imagine the flexibility that comes with current technology. Typically, builders merchants are stuck in their shops after hours, catching up on tasks that must be finished before the next day, relying upon business processes based on 20-to-30-year-old software or even no software solution at all and therefore relying on manual processes and workarounds. With better technology solutions, they can complete tasks and monitor the business from any place with an internet connection. This flexibility means merchants can drive home, have dinner with their families, and get online to continue working. The ability to have integrated solutions that allow merchants to receive alerts and manage the work without paper reporting and physical oversight is empowering merchants like never before.

Technology is driving positive change in the industry, from ecommerce and inventory management to business and machine intelligence and sales forecasting. The ability to adapt and embrace technology will be instrumental to success in the building material supplies industry. By staying at the forefront, independent merchants can unlock potential and meet the evolving needs of their managers, staff, customers, and suppliers in a more efficient, effective, and profitable way.

ecommerce

In today's rapidly evolving ecommerce landscape, the modern customer's expectations are continually changing, and businesses, especially independents, must adapt to meet these demands. The concept of an "endless aisle" has become increasingly important. This idea involves providing customers with an extensive array of products and services online, essentially extending their in-person shopping experience without imposing an additional workload on businesses.

Technology plays a pivotal role in bridging the gap between customer expectations and the capabilities of websites. Integrating enterprise resource planning (ERP) and ecommerce software solutions provide a harmonious resource blend. This integration empowers consumers and tradespeople to shop online or in-branch for delivery or pickup, explore products, manage accounts, create self-service quotes, pay invoices, and more.

These technologies are a game-changer for businesses in the timber and builders merchant sectors. They bring merchants closer to achieving an "endless aisle" capability, enabling them to compete on a more level playing field with retail giants such as Amazon, national merchants, and other larger competitors. As the online shopping landscape continues to evolve, businesses that embrace integrated ecommerce solutions are better positioned to meet the diverse needs of today's customers and remain competitive in a dynamic market.

Inventory management

Efficient inventory management has always been a critical aspect of our industry, and technology has substantially improved this area. Traditional inventory management systems often relied on manual tracking and human judgment, frequently resulting in inaccuracies and inefficiencies. However, modern technology has introduced sophisticated inventory management software that enables real-time tracking, demand forecasting, and optimisation of stock levels.

Effective inventory management is crucial for minimising waste, reducing carrying costs and ensuring that the right products are available when customers need them. Innovative solutions, such as RFID tagging, barcoding and cloud-based inventory systems, have significantly improved the accuracy and efficiency of tracking materials and products.

Machine intelligence

Machine intelligence, including artificial intelligence (AI) and machine learning (ML), has found extensive applications in the builders material supplies industry. These technologies enable automation, predictive analytics, and enhanced decision-making capabilities. In manufacturing, AI-powered robots can perform repetitive and labour-intensive tasks with precision and speed, reducing the risk of errors and injuries.

AI and ML algorithms are also used for demand forecasting and predicting market trends. These technologies can provide valuable insights into consumer preferences and behaviour by analysing vast datasets, allowing businesses to tailor their offerings more effectively. AI and ML are instrumental in optimising supply chain operations, improving customer experiences, and driving innovation.

Sales and financial forecasting

Sales and financial forecasting are vital cornerstones of any business's success, and the building supplies industry is no exception. In the past, forecasting predominantly leaned on historical data and qualitative analysis, a method that was prone to inaccuracies and the oversight of lucrative opportunities. However, technology has ushered in a significant transformation by introducing predictive analytics and data-driven forecasting models.

The need for accurate forecasts cannot be overstated in the merchant sector. Reliable predictions are indispensable for efficient resource allocation and effective risk management. Modern forecasting tools harness a combination of historical sales data, in-depth market analysis, and the inclusion of external factors to generate considerably more precise forecasts. These forecasts empower builders merchants to fine-tune their inventory levels, implement well-informed pricing strategies, and enhance their overall financial planning.

Looking ahead

Timber and builders merchants have long been a cornerstone of modern civilisation, providing the essential materials and tools for construction, infrastructure development, and countless other aspects of daily life. As the digital era continues to disrupt traditional sectors, the timber and builders merchants industry stands at the forefront of harnessing innovation to enhance the quality of life for individuals and businesses.

Cutting-edge advancements in ecommerce, inventory management, business intelligence, machine intelligence, and sales and financial forecasting are reshaping the merchanting landscape and placing a new focus on sustainability, efficiency, and improved consumer experiences. Technology has helped push the building supplies industry to evolve, and there’s more room to grow with advanced technology if independent merchants give it a chance.