INDUSTRY Trends By Jason Parchomchuk
THE PANDEMIC has forced LBM dealers and wholesalers to adopt new technology to keep their businesses going.
LBM businesses quicken adoption of new tech he last year involved a lot of change in every industry, and LBM was not immune. We’ve seen challenges and even more swift evolution. On the bright side, building suppliers have prepared for the worst, positioning themselves in a better spot than ever before to respond to worst-case-scenario situations. As we look ahead to the upcoming year, the LBM industry will see a few distinct changes.
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Cloud has never been more important
With the impact of the COVID-19 pandemic, building supply businesses are seeing an even bigger need for cloud software technology solutions that enable business continuity—allowing for the ability to be productive and respond to customer needs no matter where they are— whether they are working remotely, physically distanced in the store or on a job site. Cloud software solutions have been game-changing for many organizations, and they perform in a variety of different ways that enable employees to work remotely and physically distance in the store, yard or on the job site. Mobile apps have also become very important as they enable business transactions anytime, anywhere—speeding up a process that once took days. We have also seen many customers develop robust web stores and customer portals as the demand increases. With more remote workers comes more remote customers, and fully developed web stores and customer portals are integral in enhancing the user experience. Ultimately, cloud software has been for a significant evolution for businesses in the LBM industry, and we’re only seeing that become more and more true. As businesses need to reevaluate their own customers, using data from cloud software will help them understand which customers are the most and least profitable and understand buying
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patterns. The wide-range use of cloud software means there are more flexible ways to meet customers’ needs—customer portals are now becoming the mainstay, where as before, customers would have relied on in-person engagements much more often.
There is a sharp rise in digitized supply chains The building supply industry as a whole is moving toward digitized supply chains to better connect all stakeholders—the yard, the warehouse, the store, the jobsite, manufacturing and delivery. This level of digital integration has been accelerated by the pandemic, since it offers the most seamless model and the best customer experience since it connects every aspect of a transaction—from order status and production status, to warehouse fulfillment status and delivery status. Businesses are looking for tools that best enable their employees to be productive and respond to customer needs no matter where they are. With supply chain disruption, pricing volatility, and strategic pricing, analytics and forecasting is even more crucial to maintain profitability and help thwart issues. Customers are looking for flexible, safe options to do business with their suppliers—via mobile, online ordering and payment, curbside delivery.
The building supply industry is increasing its adoption of e-commerce software tools Building supply businesses want self-service capabilities when it comes to placing orders online, viewing account information, or making payments. For this reason, online customer portals are becoming even more mainstay, including e-commerce tools such as web stores, curbside pick-up and delivery, payment links, credit card surcharges, and more. In a lot of cases, the solutions mentioned above had Building-Products.com
