“LBM Talks” hosts top professionals from different sectors of the lumber and building material industry to share their expertise, with a heavy emphasis on practical, tactical strategies to help you serve your markets and grow your business.
Join LBM Talks host, Thea Dudley, as she brings her razor-sharp expertise to dissect trends, regulatory changes, and offers real-world advice for credit professionals. In episode three of LBM Talks, Thea sits down with Ryan Ayers, co-founder of Suppli. Together they discuss ideas like how technology can streamline workflow, what to consider when choosing a software, getting other members of your team onboard, and more. If you’re interested in learning how technology can affect your day-to-day, don’t miss this conversation.
Learn more about Suppli: https://www.gosuppli.
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Prefer to read about it instead? Take a peek at the transcript below for Episode 3: Implementing Tech, with Ryan Ayers.
(Editor’s note: Transcript is AI-generated and may include some errors.)
Thea
Hey everybody, welcome to LBM Community Talks Credit. I’m Thea Dudley, Credit Overlord. I’m thrilled that you guys are back with us. Today. We are going to talk about tech, and so I’m really excited to have Ryan Ayers here with us, co founder of Suppli. Yeah, I love the product. I want to talk more about the challenges behind tech, because we have so many people that, you know, Tech’s a big buzzword. Everybody loves it. Everybody says they want to use it, and then they don’t. There’s that fear based, and somebody’s got to drive it. And then, you know, to get that project off the ground. And then we got to talk about the cost of it, and when it comes to cash flow, even though we all know we need it, people tend to get cheap. I’m just going to put that out there. They tend to cheapen up about it. So when you’re talking to people and you know some advice you would give for our credit community, how do you go about having that C-suite conversation about why tech is important and maybe questions to ask to qualify stuff?
Ryan
Yeah, that’s right. I think you’ve got to understand kind of what the organization is looking to solve. And oftentimes what we find is there’s different issues depending upon who’s talking about the technology. So the credit team, for example, might be very focused on time savings, making their process more efficient, being able to free up their time from menial or repetitive tasks to really do the higher value work in credit, right? The reality is, though, at the C suite, you know, they’re not on the front lines every day on these creditor collection calls, they may not realize how antiquated the underlying process is. So a lot of the times, what we find there is, they’re going to be focused on things that are more about driving kind of the top line or overall customer experience. So, you know, taking it back to kind of credit software, you know, the AR workflows and the collection tools probably a lot more relevant to the folks in the credit department, but they’re going to have to be able to go in and also convey, hey, this is about more than saving our team time. This is about delivering the modern customer experience our younger buyers are demanding, and really more about staying competitive with the big national brands, you know, at this point, all of whom have whom have invested billions of dollars, literally, in building their own customer facing technology.
Thea
Well, and that’s a good point. So one of the things that I get asked a lot, because I watch a lot of demos, and I actually kind of geek out on those, so I’m always really interested in those. But the average credit person doesn’t have that kind of time, so when they’re interviewing software, you know, whether it’s yours or somebody else’s, what are some what are some tips and helpful things, you can tell them where, here’s where you should be focusing, or here’s questions you can ask to qualify it, because, you know, for credit people, we’re really good at what we do, but now we’re also being asked to get into that tech lane, And it’s really uncomfortable for some of us. I mean, I’ve had to learn Tech Talk, and I’m not I’m not spectacular at it, but I’m better than I was. What advice would you give for somebody? Hey, here are some questions you should be what you should be asking, what you should be thinking, definitely.
Ryan
I mean, I think the the technology that’s going to deliver the most impact is going to be technology that’s designed for the work that you actually do. So what I mean by that is, hey, is this an industry specific piece of software? Is it really focused on my credit workflows and the day to day that I’m living in? And does the company really even understand what my company does? And so when we’re talking to customers, one of our favorite things is when they really want to get in the weeds and the specifics of, hey, this is the, this is a workflow that is not optimal for me today. Tell me specifically how your product addresses it, because a lot of times when you’re talking about technology, there might be, you know, fancy buzzwords or slick marketing slogans, but, you know, taking it down to the weeds and really understanding how is this actually going to impact, you know, my day to day, and if the software vendor can’t speak to that, or is unfamiliar with that day to day. That’s a pretty big red flag that, hey, this may not actually be a purpose built solution. And are you going to go through all the time of implementing it to end up trying to fit a square peg in a round hole? Right?
Thea
No, that’s a good point, I know. For me, I always ask, Can I drive it exactly? And that freaks people out a little, because they’re like, what it’s like? I want to go in there and see if I can break it, and then I want to use it how I think I’m going to be using it. So I need to have, I’m very hands on. I’m a visual learner, and most, I think most people, skew that way. I want to be able to get in there. One thing that helped me in evaluating any kind of of tech was process mapping what I’m trying to apply it to, you know, no matter what it was, and creating those swim lanes and seeing where my gaps were, and then going back to the provider and saying, Can you do this? And if their answer was, stick with me, we can build it. It’s like, okay, but what I’m hearing is, you want me to invest in you, but you can’t deliver it yet, and I’m not ready to sign yet with something like that, because I can’t afford for this to fail to my company.
Ryan
Yeah, that’s right. I mean, I think it’s all about, you know, a risk reward assessment, and how much risk you know, are you potentially willing to take on, on, kind of leaning into somebody. But I think that’s, yeah, that’s great advice, and something we really appreciate. I know it’s coming from kind of the opposite angle, but. Is when someone’s evaluating a platform like supply, and they know what their internal process looks like, so they know, hey, you know, I might be the credit manager looking at this, but I know I’m going to have to get my CFO involved, or ultimately, my present owner involved. And so what that helps, you know, what that can help you do with the vendor is really frame out that use case and frame out, Hey, how are we going to have to pitch this? Because so many times we see it where the credit manager may say, Hey, this is an amazing tool. It saved me so much time. But my owner’s never going to go for this, right? And so the earlier in the sales process, you can kind of work with your salesperson to identify, hey, who else do we need to get involved here? And how can we start thinking about framing these pain points in a way that’s going to resonate with them, that’ll make the process a lot more, you know, seamless in terms of getting that internal buy in.
Thea
Well, since you kind of broached that whole and I want to dive into this, because this is a huge pet peeve of mine, and it, it’s a, it’s a pet peeve of a lot of credit people, that we get super excited about something, and then it’s, it’s kind of like you’re following the Hansel and Gretel trail with breadcrumbs. You know, it’s like, how much is the all this goodness? Don’t worry about it. The How much is this? Well, just, you know, give me a ballpark. Tell me if you know, kind of early on in the process, what this looks like. Because if it’s if I get super excited about it. And there are some some products out there I love, but I know for my, my average customer, they can’t afford it. And so I don’t want to get excited about something and then not be able to deliver it. Or it’s like, well, that’s a pipe dream. I’m never going to be able to get it. How can credit people have that conversation with people like you, with tech people earlier on in the process, so that it saves both of you a bunch of time.
Ryan
Yeah. Look, I think a couple different things come to mind. One, again, is just being super upfront about it, and knowing that, hey, this is going to be a big sticking point for us as a company, right? We maybe we’re tight on budget. Maybe in order to get this, I’m going to have to go ask for more budget, and so let the vendor you’re working with know like this is something we need to iron out ASAP, because I don’t want to waste my time or your time, if this is something that ultimately I know is not going to work for my organization. You know? I think the second thing is, is, is being willing to provide the information that the vendor might need to give you the answer you want, right in a lot of instances, and we run into this from time to time. You know, the way our pricing works requires some data and some input from the customer to really be able to tailor that proposal right? And that’s often the case with with business to business software. And so if you’re willing to provide that information earlier as well, that can help the vendor, you know, really dial in and sharpen their pencil on what the pricing is going to be, instead of giving kind of that generic, you know, range of answers, or, you know, not getting to the level of specificity you need to be able to go sell that internally.
Thea
Okay, so that’s great. And I heard what you said, How do I as a credit professional? How do I as somebody in within the company? And I’m talking, I’m talking to you about it. It’s like, Ryan, really love the product, really, you know, but before we go any further, I really want to know what’s I’m not asking you for a concise figure. Just give me your ballpark and they start hedging. How can I have that conversation, since this is what you do for a living, sure I’m great at asking for money, and I’m great at telling people No, but it’s something I really want. How can I move this conversation to where we can get to, whether I can make this happen or not?
Ryan
Yeah, definitely. Look, I think again, framing it as how critical that is for for this deal to consummate and happen, right? Is you’ve got to have that information to be able to go talk with the rest of your team. And I think a lot of the time at least, what we see is, you know, if someone who’s, if it’s the person who doesn’t have the ultimate buying authority, they can almost be a little bit timid to ask some of these questions. And I think they, you know, they feel like, hey, maybe this isn’t my, you know, it’s not my lane or my decision. So it’s not appropriate of me to be asking this. But the reality is, you’re taking that step and being a little bit more forthcoming earlier on in the process is great for everybody, because when you do go to sell that internally, of course, your CFO, your president, your owner, is going to say, Well, what’s it going to cost me? And if you say, Well, I don’t know, you can imagine where that conversation goes. You look inept, exactly. Versus if you’re able to go in and say, Hey, this is why we like this product. Here’s the value we see. Here’s the tangible, you know, ROI analysis, in terms of what it’s going to do for the business. If you’re able to go and sit down with that, it’s obviously a much different discussion. It’s also helpful for the vendor, right? Again, if they know that this is something they’ve got to get to you for this deal to move forward, you’ll be surprised how quickly their tune can change on that.
Thea
Well, it’s funny, because credit people ask for money for a living. I mean, we, that’s our stock in trade. So it always baffles me when they’re like, Well, I can’t ask. They’re not going to do it. It’s like, you haven’t even tried. You ask for money for a living, and this is your line, right? With something that’s going to help you move forward. So that that’s a whole nother. Issue. But dealing sometimes with tech people, there’s a whole different language you guys use that sometimes things get lost in translation. Like, I think when I say, can you make this? Can you make the software do this? Like, hit the button, make it happen. And you’re looking at me, going, that’s going to take four programmers three weeks. I’m like, Yeah, I don’t, well, do it. Don’t sleep. I don’t care. How come this is so hard. How can I have better, more concise, clear conversations about what my objective is? As a credit person, that tech is not my first language, right?
Ryan
I think this, again, comes back to kind of describing, in layman’s terms what you’re trying to get out of the platform, right? And I’ll be honest, it’s pretty rare. You’re going to find a software platform that addresses 100% of every single need exactly.
Thea
I just want to let you know that, you know, I’m still waiting for you all to build the platform of my incredible credit dreams, right? Which also includes a chocolate dispensary.
Ryan
And so, you know, there is an element of, I think, setting kind of realistic expectations. But again, you know, bringing this back to more brass tacks and saying, Hey, look, these are like, really the three workflows or pain points I’m really experiencing today. Can we start the conversation around how your product specifically is going to address these points and do it better than the other? You know, three or four options I may have in terms of vendors, right? And I think that kind of really narrows the conversation in and it allows you to really evaluate, hey, where am I going to, you know, it’s always the 8020 rule, right? But it’s, where is this platform going to solve, you know, the 80% of my hair on fire problems, and figuring that out, you know, very early on in the conversation.
Thea
So that’s another point that comes up with credit people a lot and owners in our industry, is Tech has suddenly discovered us, and we’re like, we’re like, that carcass on the side of the road that everybody’s kind of landing on going, this is an amazing feast. There’s so much here, and we’ve been overlooked for a really long time, so now it’s almost overwhelming for us. You know, there’s so many different things coming at us, and so cutting through the noise, you either find people go one of two ways. They either just shut it down completely and go, I just, I can’t I can’t hear another. I can’t hear about another, AI anything. Or they get so geeked out in the weeds that they demo like 15 different things, and they can’t make a decision. So we’re in the same boat. So when you look at this and you’re talking to, you know, owners or credit people or, you know, and people like me, and you’re you’re trying to cut through that noise, do you still fall back on that identify what it is you’re trying to do. And then, you know, I always tell people, interview three companies if possible, as a tech person, someone who lived, someone who came from a lumberyard background, because I don’t think that’s, you know, a lot of a lot of people don’t know that about you. You really understand the industry, sure, and how would you approach that? You know, knowing what you know that when we’re not going to speak always the same language?
Ryan
Yeah, definitely. Yeah. I mean, look, you’re right. The construction tech space has been on fire of late.
Thea
To put it lightly, I think a lot of that they’re going to move on to attorneys pretty soon.
Ryan
Oh, well, we’ll see. Yeah, I they’re probably already working that way. But, you know, look, it’s no secret. It’s a massive industry. If you look at it from from from a technological lens, there’s a tremendous amount of white space. I think the big thing, you know, I would say, is there’s a reason why a lot of that white space exists. You know, we always joke, if you’re sitting in San Francisco or New York, it’s very easy to look at, you know, a lumber yard, or, you know, a general contractor’s business, etc, what have you. And say, wow, like this would be so easy to solve. You know, why are these idiots not doing it right? And I think what’s lost in there is they, they’ve not actually walked a mile in the shoes of the people that are going to be, you know, using their product and who are operating these industries. And so one thing I would really push on is, as you’re, you know, if you’re trying to cut through the noise of saying, like, I’m just getting inundated with these things, really look at it through the lens of, is this a company that understands the construction industry or the building materials industry? Did they have experience in the industry? Or is this kind of an outsider who’s coming in and thinking, hey, I can build, you know, I can build something better, and you all these people will just be amazed by it and use it right away, right? I think having that, that background is super critical for coming into a space like this, you know. And then I think you’re right. It’s, it’s knowing what you want to get out of the software, so that you’re really leading the discussion, instead of being, you know, sold a dream, right? And so if you’re going to go out and spend the time, you know, meeting with multiple vendors, which I don’t disagree, I think that’s a good idea to go out and do your homework, you know, make sure you know, make sure you understand the landscape that’s out there. That’s a real project requires real resources, right? So I think it’s doing your homework before kicking that off to know this is really what I have to get out of this to make it worth my while, and so that I know that I have enough ammunition to go sell this internally.
Thea
No, I think that’s I don’t know that I. Could add anything to that that’s really well said. It is such a project. It’s one of those things that I know when you look at it, it’s on your to do list, and it is such an investment. Because even when I select you, even when I say, yep, you are the software of my dreams, we are moving forward. I know that there’s going to be the whole integration, there’s going to be training people. There’s going to be putting up with the different, you know, you’ve got your laggers, you know, you’ve got your what is it? 40% get on board right away, and then 30% or, like, maybe they’re looking to see where everybody else goes, right? And then you’ve got that remaining percentage that it’s like, Absolutely not. And I don’t want to spend my time with the Absolutely not. So I want to, I want to get those middle group so that I can have the majority of the company going that way, and then we invite those other people to go find their smile somewhere else, because you’re this company’s speed bump. Okay, that’s my take on it, but not everybody feels that way. So one of the things is driving that forward. And lost my train of thought there. So we’re gonna have to do some editing on that. We’re doing so good till then. But knowing that that’s that project that comes up, that somebody has to be the advocate and the driver, and it’s gotta have that buy in from, you know, the top down, I think your organization has to really be ready for that.
Ryan
Yeah, it’s 100% right? You know, buying the software is just the first step, obviously, you know, implementing it, and actually easy part, it’s okay, we bought something. Now the hard work starts right then, then the real challenge is, you know, using it, and oftentimes with these platforms, the more you use them and the more you leverage them, the more that value is created, right? So, if you’re, you know, if you’re buying a Porsche when all you need is a bicycle, right? Like, it’s a tough, you know, it can be a little bit tough to kind of see that ROI materialize, and so, you know, yeah, it’s about identifying, you know, internally. Not only Hey, who’s my champion to actually, you know, sign off and buy this thing, but who’s going to be my champion to really push us to make the changes internally that we need to to leverage this new tool that we have, and sometimes that can require, you know, change in operating procedures or, you know, and they’re not necessarily massive changes, right? But I, you know, we’re empathetic to the fact that there’s people who’ve done the exact same process, the exact same way for, you know, 1520, 30 years before the tools introduced, but
Thea
that’s their stumbling point. They have to, you have to be able to, you have to want to let go of something, to be able to learn something. And you know, at some point, you know, the reality is, if you can’t make the adjustments, then we either have to adjust the role. And I’ve had this conversation with credit people where it’s like, well, Betty’s been with the company for 45 years, and, you know, we’re just gonna wait till she retires. It’s like, so we’re really doing this. We’re really holding an entire company back because Betty doesn’t want to change or learn or grow, or we can’t maneuver it. We can’t build it around it. And I’m like, we’re really going to build a process around this person?
Ryan
Yeah, and I think that can be critical is identifying those bottlenecks or potential blockers and figuring out, how are we going to solve this? Right?
Thea
So much kinder than I am with it. I’m like, Here are your choices. You don’t have to adapt, but we have to have this conversation. And I think people are really reluctant, especially when you start getting into what we can’t get into, HR territory. Thea, it’s a woman of a certain age, and it’s like, I get that, but we also have to have the honest conversation about this is what the company needs to grow. And I mean, that’s, I wish that there was tech. Maybe I could, you know, like, do some GPT chat, that it’ll create the conversation for somebody. But it is a hard one, and that’s I’ve seen that stop organizations from moving forward with stuff that could have really streamlined and really helped everything, and instead, you’ve got that one roadblock, and she doesn’t, and I keep saying she, he or she doesn’t care if they’re the roadblock. How do you as a tech guy, address that, because you come from a different world?
Ryan
Yeah, no, it’s look. It’s a tough one. You know, I think a lot of the times what we’ve seen be really successful is, is showing that person the value rather than telling them. And so, you know, I’ll give you examples with supply, obviously, where, you know we’re providing not only an AR and credit workspace to our the credit teams we work with, but also, you know, a customer facing portal and payment experience to their end customers. And so you know, oftentimes, what we’ve seen successful is a customer will log on and use the new portal, or use, you know, payment link sent from supply, and they’ll say, Wow, this is amazing. I can’t believe, you know how much time this saved me. Like, you know, the feedback, you know, comes in really strong. And so what we’ll often do is not almost, like I told you so, but it’s almost, it’s showing that proof point, yeah, you know, or making that proof point available to the full team to be able to say, like, Hey guys, like, we’re not just, this isn’t stuff we’re just talking about. This is real feedback from our end customers around, you know, how their lives are improving because of what we’re doing here. And so I think a lot of the times people, you know, I don’t know a software company out there that doesn’t sell the, you know, a dream right around, like, Hey, this is what your life is going to look like with our platform. But I think. Like being able to put some of those real proof points on the board is something that’s really helpful in kind of getting some of those laggards over the hump.
Thea
So that brings up one more question, and then I’m going to wrap it up, because I’ve taken up so much of your time, and I really appreciate it, and I know that our community does too, because we have a lot of credit professionals out there that are looking to grow and learn. And you know, not only do you have to understand, you know, mechanics liens and collection techniques and read a credit app and all that, but now you got to kind of be a you’ve got to expand to be a tech guy too. Yeah. So, you know, the one other thing that that always comes up is, we’ve seen a lot of companies come into our space and then leave, sure, and that that’s a real fear. That’s a real fear from some of our, you know, our LBM owners, is that we’ll see somebody come in, they make a big splash for a few years, and then they’re gone. And we’re like, Okay, now we have to pick up the pieces. So what you know, especially for younger tech company companies coming into it, I don’t want to paint everybody as guys. You have to be around for 100 years before anybody gives you their respect. But the other side of that is, how do I qualify that? What questions can I ask?
Ryan
Yeah, definitely. I mean, there’s, you know, a number of different things you can look at. I think some of the things we kind of point people towards, you know, are obviously what’s kind of the funding or the ownership of the company, right? How long have they been around? Who are their backers? Are they well capitalized? Right? Understanding what that looks like, I also think you can look at, you know, who else is this company associated with or working with, right? Obviously, this is a small, it’s a it’s a big industry, but it can feel very small. We all talk, yeah, look, I think it’s always, it can be a little bit of a chicken and the egg. A lot of the times, the innovative tech companies are going to be younger, newer businesses, right? So they’re not going to have the century plus operating histories that a lot of you know, LBM dealers might. But I do think there are things you can definitely look at you’ll understand, hey, who? How long has the company been around? Obviously, you know, how are they capitalized? You know, are they venture backed? Have they raised private equity funds? You know, is there, is there? Some are there real investors kind of behind the organization? And then I think the other thing is, you know, referrals, and who, who they’ve associated themselves with, right? And you can lean pretty heavily on industry groups, whether it’s, you know, an nacm, one of the kind of regional industry groups, you know, even the folks at the LBM journal, where it’s like, hey, they’re, they’re vetting the companies they work with, right? And so if this is a brand new tech company, and they don’t have any of those types of industry referrals or industry partners, you know, maybe that’s a little bit, you know, of a red flag. And so you those are probably the main things I would look at. But you know, we got to give the tech companies a little bit of a break too. Like I said, you know that innovation and change is going to naturally come from, you know, younger and newer companies. And I think it’s important for the industry to continue to support these players that are coming into this space, because ultimately that’s going to allow, you know, companies like supply to continue to grow, build additional features and become, you know, even more impactful for the, you know, the dealers and suppliers we work with.
Thea
No, that’s a really good point that I hadn’t thought hadn’t thought of before, where it’s, it’s, I’m looking at it one dimensionally from my side, where it’s like, oh, you’ve been around, what, four or five years, what’s gonna happen? And you’re like, Well, you know, you guys aren’t busted a move there on, on, breaking out tech. Where did you think it was gonna come from?
Ryan
Yeah that’s right. And, I mean, I don’t, you know, it’s funny, like a stat that always kind of blows people’s mind. You know, Lowe’s has over 2000 software engineers on staff, right? And to compete with that, right? And, you know, and you’ve seen some of the big national brands, you know, invest in their own technology groups as well. But if you’re an independent, you know, six location lumber yard in the Midwest, I can promise you, you do not want to get into the software building game.
Thea
Now you see Beacon and SRS both built their own internal platforms, and you know, they have the time, the money and the resources to do it. But for somebody, you know, as a as a maybe one or two locations, or you’ve got, maybe you’re a regional player, it is a lot harder. You don’t have those resources. But that doesn’t mean you can’t have the same type of footprint, and you can’t compete. You’re just going to have to rely on some outside sources. And that’s scary for the entrepreneur, you know, in US, where that OCD letting go and trusting somebody else is tough, yeah, and especially tough for for lbmers, where we’re we’re a DIY, DIY kind of group. And so it really, we’re like, we’re going to build it ourselves. And then we realize our string and Tin Can are getting.
Ryan
Yeah, no, exactly. And I think, again, kind of thinking of these earlier vendors is, yeah, it is a little bit of a partnership, right? And, you know, you’re kind of taking a bet on their ability to serve and deliver and continue to grow. But that’s really the best path forward here again, versus, you know, having to build your own engineering and software team in house so.
Thea
Well, I want to thank you for spending so much time with us. Ryan, I appreciate it. I know the LBM community does. I know, you know, credit people don’t normally get a lot of resources and stuff thrown at them beyond, you know, just the usual stock and trade stuff. Yeah. So we love that AI is finally hitting our space. So you know Ryan, thank you again. So much. So Ryan Ayers joined us from co founder of supply. We really appreciate the information on AI tech and how to talk tech to whoever you’re talking to as a provider.
Ryan
Awesome. Glad to be here. Thea, thanks so much. Thank you.
