Intact Insights | Blog

Building Materials Supplier Software: Solving Today's Business Challenges

Written by Catherine Cane | 21-Nov-2024 14:16:58

As suppliers of building materials, you face fresh challenges every day. Through countless conversations with businesses across your sector, our sales team understands the hurdles you're up against. We've gathered these insights to show you how the right software can solve real problems that businesses like yours face. From price volatility to customer retention, these challenges require modern solutions that can adapt to your changing needs.

Challenge 1: Managing Price Volatility 

 

What Our Team is Hearing: 

"Current and past global events have caused dramatic price increases, sometimes up to 250% for things like timber products. And with rising container prices and duties, it's been a huge challenge for builders' merchants," reports Dylan Kerly, Intact iQ Consultant. This volatility doesn't just affect your bottom line – it impacts every aspect of your business, from purchasing decisions to customer relationships. 

Software Solutions That Can Help: 

Good software takes the headache out of managing changing prices. It can automatically update your prices when suppliers change theirs, whilst making sure you maintain your profit margins. You can set time limits on quotes to protect yourself from sudden price changes, and the system can warn you if prices drop too low. Moreover, having a clear record of past pricing helps you make better decisions about future prices and discounts. 

For Herne Bay Plumbing & Bathroom Supplies, price management was a significant challenge before implementing industry-specific software. "Xline has made dealing with price increases so easy. Once we have the supplier information, I put it into a format that works for Xline and with just a few clicks, the system is updated, ensuring our pricing remains accurate," explains David Philpott, Manager. 

Challenge 2: Customer Retention in a Competitive Market 

 

What Our Team is Hearing: 

"You might have a loyal customer of 5 to 10 years who is now looking at other building material suppliers to see if they can get an item cheaper," observes Ryan Finnegan, Intact Xline Consultant. As one business owner recently noted, "If we're losing customers, we're losing money." In today's market, customer loyalty is hard-won and easily lost. 

Software Solutions That Can Help: 

The right system puts everything your staff needs to know at their fingertips - stock levels, prices, and what your customers have bought before. Your trade counter staff can access all customer information on a single screen, including complete purchase history and personalized pricing. They can quickly check delivery times and send updates to customers automatically. Plus, with the latest mobile apps, your sales team can access all this information on their phones or tablets when they're out meeting customers. You also can set up rewards for loyal customers and spot buying patterns to offer better deals. 

Challenge 3: The Stock Management Dilemma 

 

What Our Team is Hearing: 

“Supply chain challenges are really hitting businesses hard right now," explains Darren, our industry expert and Intact iQ consultant. "It's a delicate balance - you need to maintain optimal stock levels despite limited supply, while also ensuring your purchasing controls are effective. And it's not just about having the right amount of stock. When supplier prices change, those changes need to flow accurately through your system to your customer pricing, otherwise you risk your margins slowly disappearing”. 

For Setra Wood Products, this challenge was particularly acute after merging two businesses. They needed greater control over their processes and stock management. After implementing industry-specific software, they gained crucial visibility across their operation. As their management team notes, "It's the visibility of everything through the system that has been crucial for us... It's just having all that data at the click of a finger." 

The situation is even more complex due to the housing crisis," Darren continues. " While government initiatives are attempting to address new house building needs, the reduced level of construction over recent years has meant lower sales volumes across the industry. This makes it more important than ever to have tight control over your stock levels and margins - you can't afford to have money tied up in excess inventory when every sale counts. 

Software Solutions That Can Help: 

Building materials supply software with smart stock management features helps you keep the right amount of products on hand without tying up too much money in inventory. It can automatically suggest orders based on what you usually sell and warn you about slow-moving stock.  

It can handle a diverse range of product types with different units of measure and manage special product catalogues for items you don't stock regularly. It can also create automatic back-to-back purchase orders for special customer requests 

The right system will also enable you to see what's available across all your locations in real-time, track how well your suppliers are performing, and set up automatic ordering when stock gets low. This means less time counting stock and more time selling it. 

Challenge 4: Time and Resource Management 

 

What Our Team is Hearing:   

Many smaller builders’ merchants struggle with time management, with owners unable to step away due to centralised knowledge. This often results in "relentless bombardment of phone calls from staff" during time off, according to our consultants. The need for efficient resource management has never been more critical. 

Software Solutions That Can Help: 

Modern software can free up your time by handling routine tasks automatically and making sure everyone can find the information they need without asking the boss. From sending invoices to checking stock levels, staff can handle more tasks independently. Reports that used to take hours can be generated instantly, and important documents can be digitally stored where anyone who needs them can find them. This means you can actually take a day off without your phone ringing constantly. 

Choosing the Right Building Materials Supplier Software

Based on our team's extensive experience, here are key considerations when selecting software for your business: 

  • Take Your Time: Before jumping into software demos, get clear on what your business really needs. Talk to your team - from the trade counter to the yard - about their daily challenges and what would make their jobs easier. This homework might take time, but it's worth it. When you do start looking at software options, you'll know exactly what you're looking for and avoid choosing a system that doesn't fit your way of working. 
  • Set Clear Goals: As Ryan notes, "This will give you a key purpose and a reason to buy it," making it easier to justify the investment. Define specific objectives like reducing stock holding costs, improving customer service metrics, or streamlining delivery operations. 
  • Think Long-Term: Consider your needs for the next 10-15 years. As Darren says, "You're not buying the software for just today. You're looking at the next 10 to 15 years as a partnership." Look for scalable solutions that can grow with your business, whether you're a 2-user operation or need to support 200+ users. 
  • Choose a True Partner: Remember - you're not just buying software, you're starting a long-term relationship. Look for a vendor who'll work side by side with you, taking the time to understand your business and helping you to adopt industry best practices. As Tim Payne, Managing Director of South Coast Building Supplies, explains: "From our perspective, working with a partner who truly understood our industry and its unique challenges played a big part in choosing Intact iQ." 

    In addition, the right partner won't disappear after go-live - they'll provide the aftercare support you need until you're confident with your system and getting the best out of it. They will also assign dedicated account managers who will meet with you regularly to discuss your evolving needs and help plan future projects. 
  • Embrace Change: "If you want to do things exactly as you're doing it today, stick with what you have. But if you're looking to grow, then find a vendor that brings market-tested solutions and change management expertise." Be open to new processes that could revolutionize your operations. 

 

The Right Software Makes the Difference 

Modern building materials supplier software should be more than just a system - it should be a comprehensive solution that understands your trade. Look for software that: 

  • Handles diverse product types (from chain sold by the meter to timber priced by cube) 
  • Integrates all operations seamlessly, from sales to delivery and accounting 
  • Provides real-time business insights through customizable dashboards or built-in business intelligence tools 
  • Scales with your business growth and adapts to changing needs 
  • Offers industry-specific features designed for building material suppliers 
  • Supports multiple users and locations with role-based access 
  • Provides robust security and data backup solutions 

The housing shortage and ongoing market challenges make it more important than ever to have systems that can help you adapt quickly and serve your customers efficiently. The right software solution can transform these challenges into opportunities for growth, efficiency, and improved customer service. 

Having the right software can make a real difference to your business. If you'd like to learn more about what would work for you, schedule a demo here.