For as long as mankind has been involved with trading products or services for currency, we have striven to find effective ways to deal with numbers and understand data. Take for example the slide rule, a commonly used device up until not that long ago.
While the beginnings of the slide rule can be traced back as far as 16th century, John Napier de Merchiston, inventor of mathematical logarithms, is responsible for the beginnings of the device. In an attempt to simplify calculations, he invented in 1617 what was commonly known as Napier’s Bones, a set of sticks based on the gelosia, or lattice multiplication method.
Around 1622, William Oughtred, an Anglican minister, placed two such scales side by side and by sliding them together he was able to use them to read the distance relationships, thus multiplying and dividing directly. Today he is recognized as the inventor of the slide rule in its current form.
While a slide rule still has its place (especially in navigation), there are now far better tools at our disposal to help us calculate numbers and understand their relationships with each other. Still, there are always attempts to “make a better mousetrap” and create a tool that makes it easier and more efficient—no small task for a segment such as the LBM industry. Enter software makers. Their most recent offerings put power at the fingertips of LBM dealers that could only have been dreamt of just a few decades ago.
Cloudy, with a chance of AI
When it comes to technology trends, the biggest, say technology developers, won’t be physically at LBM dealers but rather will be the unseen heroes that help with efficiency amidst the continuing challenge of a diminished workforce—cloud and artificial intelligence (AI) development.
“One emerging technology trend we are seeing is cloud computing, which offers a robust foundation for digital transformation,” says John Carrico, vice president of product management for Epicor Software Corp. “By migrating enterprise resource planning (ERP) systems to the cloud, LBM dealers can benefit from increased scalability to handle fluctuating workloads, enhanced security through cloud providers’ robust infrastructure, and reduced IT costs due to the elimination of on-premises hardware and maintenance. Additionally, cloud-based systems often provide employees accessibility to data and applications from anywhere with an internet connection, improving flexibility and remote work capabilities.”
“AI is also rapidly evolving and holds immense potential for LBM dealers,” he adds. “By incorporating AI into operations, dealers can streamline processes, gain valuable insights from data, and improve decision-making. AI-powered tools can automate routine tasks, optimize inventory management, predict demand, and personalize customer experiences.”
John Maiuri, president of the LBM division of ECI Software Solutions, also sees cloud and AI solutions as becoming top of mind for LBM dealers and bringing value to cloud solutions by way of analytics. “At ECI Software Solutions, advanced analytics are already incorporated into our Spruce software, and we continue to enhance the solution with AI-led tools, including a feature that uses ChatGPT to develop blog posts and product catalog content for customer marketing needs,” he explains, going on to say, “Cloud, AI, and ecommerce technologies continue to prove their value when integrated. Not only do they remove the burden of having to manage software infrastructure, security, integrations, and upgrades onsite, but they also allow business owners to remain focused on core revenue, operations functions and their customer engagement rather than being distracted by multiple technologies.”
Tony Pey, global business development manager for Kerridge Commercial Systems, agrees with others in regards to the importance of the cloud to today’s LBM dealers, and the company’s software reflects that. Its cloud-based K8 ERP system is reported to be a fully integrated and comprehensive ERP and business management system that enables LBM dealers to manage all aspects of business. “With over 40 years of experience supplying solutions to the LBM industry, Kerridge Commercial Systems (KCS) understands the unique challenges businesses within this sector face,” he says. “In addition to supporting your traditional sales activities, such as processing orders in-store and via EDI, K8 enables you to sell online using a suite of fully integrated web solutions. And thanks to the innovations in the latest version of K8, it is packed with features that deliver the perfect digital platform to modernize your business.”
In short, it’s about being able to conduct business from any location at any time, says Brian Sherman, product manager at DMSi. “Mobile access to ERP systems is a game changer for LBM dealers, as it lets them handle their business activities from anywhere, as long as they have a device with a web browser. It’s all about flexibility and staying connected, no matter where you are,” he explains. “The role of expanded analytics tools is also becoming increasingly important for LBM dealers. These tools help bring the most crucial data to the forefront, making it easier to make smart, efficient decisions.”
LBM solutions
These technology trends all point towards solutions that enable flexibility in the face of doing more with fewer physical resources. For Epicor, those solutions—cloud, AI, and others—take the form of BisTrack, a comprehensive suite of cloud-based solutions that Epicor says is designed to address the unique challenges faced by LBM dealers such as managing diverse product lines, tracking inventory across multiple locations, and optimizing delivery routes. “Several of BisTrack’s business applications incorporate AI capabilities to enhance business functions such as inventory management, forecasting, and document management,” explains Epicor’s Carrico. “By harnessing data within BisTrack, LBM dealers can gain valuable insights into their business performance, identify areas for improvement, and make data-driven decisions.”
For ECI, those LBM-specific solutions can be found in Spruce, especially when combined with the company’s integrated ecommerce solution, Spruce eCommerce, and are designed for the unique needs of LBM businesses. “The builders, contractors, tradespeople, and DIY enthusiasts of today have more shopping and purchasing process opportunities than ever before—especially in today’s evolving digital buying space, and there’s a gap between what these customers expect from dealer’s websites and what’s available,” says ECI’s Maiuri. “Spruce eCommerce provides today’s commercial customers with the option to view and pay statements online and supports the idea of an ‘endless aisle of products and information,’ helping SMBs extend their customers’ buying experience beyond the in-store and immediate-pay option.”
Kerridge’s Pey points out how the right software solution eases the burden of understanding data and putting it to use, referencing the company’s ERP system. “K8 is a vast and multi-layered system,” he explains. “Because it’s easy to use, it can help drive efficiencies in every business area, especially since you gain access to a fully integrated system that offers a holistic view across your business. This improvement in efficiencies is possible because we have a range of mobile applications integrated with K8 to help bring the technology to the job rather than the other way around. By allowing staff to record data where they work, countless efficiencies and automation can be brought in across your operation.”
At DMSi, its Frameworks ERP is web-based and is reported to cover everything an LBM dealer needs from start to finish. “It’s all integrated into one seamless system, from the sales counter, to dispatch, to financial reports,” says DMSi’s Sherman. “Frameworks works just as smoothly on your smartphone or tablet as it does on your desktop. This means you can keep tabs on all your projects, anytime and anywhere.”
Boosting productivity
At their cores, effective software for the LBM industry do their best when they improve productivity for the overall operation while not requiring additional manpower or workload on existing staff. In fact, say software makers, these solutions make it easier for an LBM dealer’s staff to be more productive.
“The ability to make informed decisions can increase efficiency, leading to better resource allocation, and reduced redundancies,” says Epicor’s Carrico. “Epicor BisTrack can significantly improve productivity for LBM dealers facing labor shortages by leveraging AI to automate routine tasks, such as data entry and report generation, reducing overall processing time and freeing up employees’ time to focus on higher-value activities. By optimizing inventory levels, improving demand forecasting, and streamlining logistics, BisTrack can help LBM dealers operate more cost-effectively.”
ECI’s Maiuri agrees about productivity, pointing out how cloud, AI, and e-commerce remove the burden of having to manage business processes onsite. “An integrated ERP and e-commerce software solution brings the best of both worlds. ECI’s Spruce eCommerce unlocks the ability to shop online for delivery or in-store pickup, browse products, create accounts, build self-service quotes, pay invoices and more. For LBM and hardlines businesses, these technologies move dealers closer to endless aisle capability and can stay ahead of their competitors.”
The best technology, say software creators, allow LBM dealers to stay agile, and be able to respond to their customers’ need as quickly as possible. “As business ramps up, it’s more important than ever to keep transactions speedy and fulfill orders promptly,” DMSi’s Sherman describes, referring to the company’s Frameworks ERP. “DMSi Frameworks is designed to be modern and user-friendly, making it easy to train new employees. With features like color-coded fields and pictures of inventory items, it’s much easier for newcomers to get things right. Our strong in-house support team understands our customers’ businesses and are able to quickly find the right solution.”
We’ve come a long way since Napier’s Bones and the slide rule, and being able to make sense of data no longer needs to feel like some arcane science. Still, LBM dealers face a daunting task when it comes to managing numbers and the multitude of tasks required of any LBM business. The successful dealer, however, won’t be daunted by these challenges and instead will rely on technology, be it cloud, AI, or other manifestation to shed light on the overwhelming world of data.
Tech Tools for Success
Along with the technology providers we interviewed for their insights, there is an array of tech options that bring unique solutions to the table for building materials distributors. While we covered some of these in our June 2024 In Depth technology feature, these should stay top of mind for LBM dealers looking to stay ahead of the game.
Buildxact
Technology is making it easier to manage accounts, which is critical at a time when good, reliable labor is hard to find. Buildxact has launched a solution for dealers to deliver services to pros who are not managed by an existing sales team. Those unmanaged accounts represent a large opportunity and include custom builders and remodelers who have to create a new project scope and associated bill of materials with quantities for each project. And according to Buildxact, its takeoff and estimating tools enable dealers to give pros a simple way to save time and have a better online experience while growing ecommerce sales. Buildxact’s solution requires no change management from the dealer’s end, which typically presents risks in getting systems integrated and collaborating.
“By creating dashboards, dealers can be more efficient and can create a better experience for the pros they serve, and therefore have better relationships with them,” says Steve Yates, CEO of Buildxact. “Part of creating that ideal customer experience is providing ecommerce tools. The pros that dealers serve are looking for labor savings and efficiencies, so dealers have to find ways to deliver seamless, fast, easy experiences for pros, including online ordering and jobsite delivery.” buildxact.com
BuyMetrics
According to BuyMetrics, its new Advanced Analytics module gives users the learning resources to stay in front of change by automatically scrutinizing your purchase and market data, developing reliable, fact-based insights; instantly responding to complex, multi-dimensional user-defined queries; generating time-sensitive business intelligence (BI) and your most important measures (KPIs) in an easy-to-comprehend, visual format.
“BuyMetrics came from the rugged, entrepreneurial, independent end of the size spectrum,” notes Valerie Hansen, BuyMetrics’ founder and chairperson. “While we serve yards large and small, the reluctance of many independents to embrace the remarkable efficiency technology is both a source of concern and personal gloom. (The future waits for no one.) Independents are fiercely customer driven, and so is BuyMetrics. In many ways technology could be a great-leveler of knowledge/efficiency for the industry. BuyMetrics is not just for the big guys.” buymetrics.com
Do it Best
Do it Best has announced expanded capabilities for selling lumber online, offering customers a more streamlined and efficient shopping experience. “Our data showed that lumber was among the top searches on our site, indicating a clear market demand,” said Divisional Manager of Ecommerce Marketing and Merchandising Brianna Wells. “Many of our members sell lumber, and we saw an opportunity to boost their sales by catering to consumers who prefer to pre-buy online before visiting the store.”
Do it Best will monitor key performance indicators such as direct online sales and overall site traffic to measure the success of the online lumber sales. Additionally, the company will track the influence of online visibility on in-store purchases. doitbest.com
Flitch
Flitch is a powerful, cloud-native operating system for independent dealers. The platform was built in partnership with a select group of leading LBM dealers to leverage modern technology to solve major pains dealers have faced for decades involving ease of use, custom reporting, special order management, enhancing the customer experience, and integrating with third party systems. According to the company, features include cloud-native development, ease of use, user-driven custom reporting, special order management, and open API integration.
Its Smart Search functionality is reported to guide users with intelligent search recommendations, similar to Google, providing instant and accurate search results. Finding data in seconds instead of minutes allows staff to process more orders and provide more responsive customer service, keeping operations running smoothly and reducing the need for managerial intervention. getflitch.com
Handle
Specifically designed for material suppliers like LBM dealers, Handle manages online payments and lien management for construction. According to the company, its electronic parcel map ensures accurate owner verification, even when a precise address for certain projects is not available. In addition, Handle provides individual state specific documents, offers mail tracking and delivery verification, and can integrate with an LBM dealer’s current accounting system.
“LBM dealers face many challenges within every aspect of their businesses,” says Chris Woodard, chief marketing officer at Handle.com. “Companies like Handle are working closely with these dealers to leverage technology and develop the most efficient process improvements possible (and in Handle’s case, specifically within the finance and credit departments).” handle.com
NCS Credit
NCS Credit specializes in collections, mechanic’s lien, bond claim, and UCC filings across the U.S. and Canada. Its proactive solutions are designed to secure receivables, minimize credit risk, and boost profitability. The company’s LienTracker Online is its cloud-based solution for serving preliminary notices and managing the mechanic’s lien process. It simplifies tracking over 1,800 statutory deadlines, plus user-defined dates, ensuring users never miss a critical deadline.
In addition, its LienFinder is an extensive online database that aggregates construction project data from mechanic’s lien filings nationwide, the company says. It helps LBM dealers access essential project information, avoid payment risks, and stay informed with alerts and accredited insights. ncscredit.com
NetNow
NetNow enables LBM dealers to better manage and on-board new and existing customers on credit. Within the LBM industry, credit applications and credit accounts are fundamental to how business is done.Dealers need to offer credit terms to customers and this often requires a long, paper-intensive process that involves the customer filling out a credit application form which the LBM dealer then has to analyze for fraud, contact trade and bank references, run a credit report and then notify the account customer.
According to NetNow, it streamlines and automates every aspect of this process, allowing credit teams to focus more on building customer relationships, managing collections, and conducting analysis. netnow.io
Paradigm Technology
Paradigm offers an estimating service, based on technology, designed specifically for LBM Dealers called Paradigm Estimate. The service streamlines the estimating workflow, providing a consistent take-off with a quick turnaround time, regardless of volume. This has allowed its customers to handle more take-offs in a timely consistent manner, allowing them to bid on and win more jobs.
According to the company, Paradigm Estimate can seamlessly integrate into the point of sale (POS) system, dramatically improving the efficiency of the estimating process. Many customers can now produce a takeoff with just 15 minutes of effort or less, it says. The workflow is simple and efficient: submit the plan to Paradigm, receive the completed takeoff shortly thereafter, import the plan into a POS system, review the takeoff, and send it to the customer. This streamlined process significantly reduces the time required for each takeoff. myparadigm.com
TOOLBX
TOOLBX is a commerce platform designed specifically for the lumber and building supply industry. According to the company, it integrates seamlessly with major ERP systems, making it easy for independent building suppliers to sell online, manage quotes, accept payments, and communicate with their contractors—all in one platform.
According to TOOLBX, the platform is ERP-agnostic and integrates with all popular ERP systems, allowing dealers to connect their existing ERP to their storefront enabling automated synchronization of pricing, inventory, quotes, and orders between your online store and ERP system. It recently introduced Quote-to-Order, allowing dealers to enable customers to accept, convert, and complete payment for quotes online, speeding up the purchasing process and reducing tedious back-and-forth communications. toolbx.com
Tech Tools from Manufacturers
Software makers aren’t the only ones providing technology solutions to the LBM industry. Building materials manufacturers are just as invested in creating tools to help both the dealer and the product end user. Some leading manufacturer technology tools include:
Boise Cascade
Boise Cascade offers LBM customers a suite of integrated estimating, design, workflow management, and automated material processing tools designed to help improve productivity. BC FloorValue, part of BC Framer 3D design software, helps identify and fix potential floor performance problems before they get built. Web-based BC Connect workflow management software combines project, file management, inventory, and material cut optimization to give dealers a single platform that starts with the initial project request and ends with pre-cut and labeled job packs ready to ship to the jobsite via the company’s SawTek automated processing saws. Optimized, pre-cut job packs from SawTek systems give LBM dealers a premium offering to their customers that help set them apart. Job packs not only help reduce waste, but with optional pre-cut holes for mechanical, electrical, and plumbing chases, they also help reduce the builder’s cycle time.
According to Chris Brandt, director of EWP value added solutions for Boise Cascade, the company recently invested in a new role, the Customer Advocate, whose primary focus is to listen, observe, and collect feedback on all current and potential features across its software suite. Seeing the software and workflows through the eyes of the customer helps guide the company’s efforts to create or enhance features that make a difference. bc.com
Simpson Strong-Tie
Pipeline LBM is a web-based construction estimating solution from Simpson Strong-Tie for lumberyards that it says transforms takeoff quantities into data to drive business. This solution enables LBM dealers to standardize estimating logic, automate customer and location preferences and streamline the estimating process to produce an accurate, detailed and consistent bill of materials (BOM) for every job. One of the main benefits of Pipeline LBM is the ability to centralize your estimating logic to produce consistent and accurate BOMs. Customers realize this with our built-in logic that allows them to customize their rules, calculations and preferences that automate their workflows. This allows for even shorter turn-around times and creates greater efficiencies in the work production.
Also available from Simpson Strong-Tie, its Outdoor Living Solutions platform suite includes three free software applications—Fence Planner Software, Deck Planner Software, and Pergola Planner Software—that gives retail customers the ability to quickly design outdoor living structures. strongtie.com
Weyerhaeuser
Weyerhaeuser offers a suite of software that helps dealers and their customers implement high-quality structural framing solutions and optimize material use while reducing construction cycle time, cost, and waste. For example, the company’s Javelin software models an entire structural frame, allowing dealers to optimize combinations of residential engineered wood products and dimensional lumber in layouts for floor, wall, and roof systems—all in a single file. To further add value for the builder, dealers can use Weyerhaeuser’s NextPhase Site Solutions to integrate the design data from Javelin with saw technology to create pre-cut and pre-labeled JobPack framing bundles.
“Having access to data helps inform decision-making,” says Matthew Smith, Weyerhaeuser’s software development manager, about the importance of technology tools. “For example, Weyerhaeuser’s Stellar software gives dealers information to make decisions about when and what to order as well as make the best material and labor optimization decisions. From creating an optimized shipping list with jobsite cutting instructions to automated cutting equipment producing precision-cut framing packages as part of the NextPhase Site Solutions program, Stellar software easily scales to the needs of each business.” weyerhaeuser.com
