Getting to Grips with Post-Brexit Price Hikes

Chris Fisher, UK operations director at ECI Software Solutions, explores some of the ways builders’ merchants can alleviate disruption and price hikes – while still offering a high quality service.

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A report by Money.co.uk found that homeowners have spent £55 billion on renovations since the start of lockdown, with 73% intending to spend more time at home, even as restrictions slowly ease. As the nation spends its savings and spare time on home improvement, orders for construction materials continue to surge. But timber and builders’ merchants across the UK are facing another challenge that could reduce the availability of key materials.

Alongside the obvious supply chain problems caused by Covid-19, Brexit is also causing a headache for merchants. Price increases and materials shortages are expected to last well into the summer – precisely the time when garden and landscaping projects are stepped up. Some 58% of UK firms are now also experiencing longer border delays due to Brexit, compounded by the new import requirements introduced in April, with more due in July.

Orders might be healthy, but to maintain exceptional customer service you need to streamline your operations. With overheads, additional costs and timelines changing daily, your sales, finance and other back office processes should allow you to be flexible as demand changes, maximising sales opportunities and maintaining cash flow.

Fast and accurate decision-making

Juggling the day-to-day responsibilities of a busy merchant’s yard is already challenging but processing high order volumes in an uncertain climate will put every fast-paced business to the test. As requests and updates from buyers and suppliers build up, you need to be able to respond quickly and accurately. Relying on separate spreadsheets and physical documents could lead to errors, particularly as information and governance changes on a regular basis.

This is where an electronic – ideally cloud-based – document management system is essential. Look for one that is capable of storing a number of formats including scans, invoices and key documents in a central database. This way you can manage, track and save all documents securely, and ensure they’re easy to access when you need them. Many of the day-to-day processes undertaken by staff can be streamlined which, over time, will add up to a significant time-saving. It also minimises the chance of oversights or mistakes, which could be costly and time-consuming to put right.

Advanced reporting

Global supply chain issues at the beginning of the pandemic highlighted how fragile modern supply chains can be, not just in construction but every sector. For merchants, it only underlined the importance of up-to-the-minute business insights that inform effective decision-making. While pandemic-related supply disruption was shortlived, it’s not yet clear what the impact of Brexit will be. Whatever happens, you may be faced with making rapid decisions and this is when having all the information you need at your fingertips is crucial.

A cloud-based business management system, which can link your reporting with key documents and details, saves valuable time and helps to increase accuracy. For even more efficiency, look for one that works via specific employee permission-based access, giving you control over sensitive information without losing time on extra layers of security. Tasks such as referring to previous customer orders, noting down specific order requirements and accessing order summaries or account balances are made simple and easy. This sets you apart from the competition at a time when customer service and communication is key.

Working with a cloud-based system, this data is instantly available within a few clicks, allowing you to respond quickly to customer enquiries. Even if you are experiencing shortages or delays, being able to offer accurate waiting times or product alternatives could mean the difference between a lost sale and a loyal customer.

Just as the industry has weathered the disruptions caused by Covid-19, the next few months will see construction and materials businesses facing unique challenges once more, as the impact of Brexit is truly felt. However, with the right technology it’s possible to adapt your processes and make sound evidence-based decisions, which in turn help you to fulfil customer demands and deliver exceptional service even in challenging circumstances.

More at:  www.ecisolutions.com/en-gb/builders-merchantssoftware/spruce

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