E-dealer becomes global urith logistics softtuare

If fhen Jeff Booth and Rob Banks YY launched BuildDirect seven years ago, their goal was to change the way building products are sold.

"The building products industry is one of the most fragmented industries in the world," said Booth, who has worked in construction and real estate development. "There are literally millions of manufacturers out there. and because it is such a fractionalized industry, you end up with many layers between the manufacturer and the end customer, all of whom are looking to build a profit into their pricing."

True to its name, the Richmond. B.C.-based company buys directly from top manufacturers in the rvorld and ships directly to customers. Current product lines include flooring, tile, roofing, countertops, and decking. Proprietary shipping and logistics software automatically maps out the best delivery route and shipping method for door- to-door delivery anywhere in North America or to any port world- rvide. Purchasers receive instant shipping estimates so they knorv the exact costs of shipping before they buy.

"We have been able to build the business into rvhat it is today because of the unique advantages rve offer to both manufacturers and customers." said Booth. "For manufacturers. we are able to take on all of the costs and rvork associated rvith branding. logistics, and marketing for their products internationally. For volume buyers. rve provide unrivalled customer service. the best quality and pricing together rvith integrated on-time logistics." The company also provides all rvarranty support and customer service.

After seven years. BuildDirect continues to grorv and change. "A lot of companies in the building products industry that used to think of us as a competitor norv see us as an ally." said Banks. "There are also some areas rvhere rve are just never going to compete. For example. we never plan to set into the business of warehousing product. Our success has been built on providing volume buyers (homebuilders. developers. contractors. remanufacturers. architects. and do-ityourself renovators) rvith the best quality products shipped directly from the manufacturer."

Some customers. he said. need to have rvarehoused products that they can pick up or have delivered the same day. "There rvill ahvays be a need for that business." he said. " and to our benefit. some of the rvholesalers and retailers rvho do have rvarehouses are starting to see that we can offer them better pricing and products than anyone else."

While the U.S. market accounts for l5% of their sales. the company's global reach continues to expand. A rvorkforce that speaks 22 different languages helps the company do business in more than 50 countries. "ln some countries like China. our business rvas initially just finding the best manufacturers rvith whom to establish partnerships." Banks said. "Norv rve are starting to sell back into those markets and reaching some of the furthest corners of the globe."

As an example. the company recently sold and shipped its fint pallet of flooring to a buyer in the Seychelles-one of the most remote and costly places in the rvorld to ship products to. "That is horv our shipping and logistics system has been built." he said. "Not only can we get the lorvest prices for a customer in Los Angeles or Nerv York. but rve can also offer the best pricing virtually anyrvhere in the rvorld."

As customers get used to the concept. more of the business is conducted online. "At first most new customers wanted to call in and speak to someone about their order. particularly rvith the large quantities that they rvere ordering." said Booth. "What we are finding norv is that once customers have made that first order by calling directly. they see the quality and customer service that we provide and feel a lot more comfortable completing subsequent orders online."

In August. the company secured an additional $7 million in private equity financing to help accelerate BuildDirect's continued grorvth. "We want to keep building this company into an international success story," said Banks. "l rvould love it if one day I could pass a very successful business on to my children."

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