The Great Equalizer
In the challenging landscape of the building supply industry, resilience and adaptability are essential. John Maiuri, a seasoned expert in the field, emphasizes the fortitude required to thrive in this competitive environment.
Humboldt Sawmill is part of the Mendocino Companies, a vertically integrated forest products business with a large footprint across the Western U.S. The company owns nearly 450,000 acres of redwood and Douglas-fir timberlands and three sawmills in California, as well as six wood treating plants in California, Colorado, Oregon, Utah, and Washington and four standalone distribution centers in California and Hawaii. Managed to the highest environmental standards, the Mendocino Companies’ timberlands, sawmills, treating, and distribution operations are certified to the standards of the Forest Stewardship Council® (FSC® C013133).
John Maiuri: There’s a philosophy in some businesses, which I completely understand, that digital communications distances yourself too far from the customers. It's based on the need to feed and nurture relationships in person. And the concept of distancing yourself from your customer through digital communications —seems counterintuitive for some.
John Maiuri: It’s called Spruce eCommerce. It is real time connection between a business’ online presence and their ERP data. So every single customer that logs into one of our customer websites is getting actual data for inventory quantity, end-user specific pricing, job specific pricing, or custom contract pricing. It is all being passed in real time as the customer clicks on their keyboard at their home or office. It includes customer account updates, account balances, and available discounts, all of that is automated in the solution So whether it's a DIY or a trade account, it's just as though they're standing in the store.
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HBSDealer: How is retail technology evolving?
John Maiuri: We engage with a lot of different people, both prospects and existing customers. We also engage with our customer advisory boards, as we try to guide this business and steward the solutions that we bring to the market for the benefit of our customers.
Join dealers and distributors nationwide and get to know how ECI Solutions can help you by contacting us by calling us at 866.374.3221. For all other information, please visit https://www.ecisolutions.com/industries/building-supply/.
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HBSDealer: How is ECI working with dealers as the industry continues to evolve?
HBSDealer: So how would you describe your solution?
HBSDealer: Why would a business be against selling online?
Rooted in the Forest
Accelerated by the global pandemic, a segment of forward-thinking customers sought our software expertise for establishing and operating their businesses online. My mission is now to be in a position to have a solution for our customers that makes sense for their business.
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“We’ve never been a business that’s for the faint of heart,” said Mauri, president of ECI’s Building Supply division.
While independent dealers have enjoyed sustained success, many now find themselves navigating a rapidly evolving marketplace. With the rise of big-box stores and e-commerce giants like Amazon, these traditional businesses face unprecedented challenges as they strive to maintain their foothold in the industry.
Despite these pressures, Maiuri remains optimistic about the future for these businesses. These companies, built on decades of experience and deep community ties, continue to adapt and innovate.
By leveraging their unique advantages and focusing on customer relationships, they can weather the storm and find new pathways to success.
Mauri elaborates on his view of technology in this recent interview with HBSDealer.
John Maiuri: The biggest trend in the industry is the nature of online sales as a channel. Accelerated by the global pandemic, a segment of forward-thinking customers sought our software expertise for establishing and operating their businesses online. My mission is now to be in a position to have a solution for our customers that makes sense for their business.
ERP software has been in this space now for 40 years and some of those same early software adopters are reluctant to an online platform. As a matter of fact, many are either vehemently against selling online or can’t wait to implement it.
The core attribute we're building is the omni-channel experience. It’s the ability to create and extend the same experience you produce in-store in an online setting via an digital connection to a customer.
I would venture to say that there will be a number of people reading your content that again have little appreciation today for ecommerce as it connects to their business. But that could change for that customer tomorrow, next month, or next year. People fought the computer 40 some years ago and now everyone carries a smartphone! There are those slow to adopt ecommerce today, but we are here to get them up to speed when they are ready – because e-commerce is the natural path forward.
John Maiuri, president of ECi’s Building Supply division
A Q&A with ECi Solutions' John Maiuri
Ecommerce Evangelist:
A Q&A with ECI Solutions' John Maiuri
John Maiuri, president of ECI's Building Supply division
Annual spending on information and communication technology (ICT) for The Home Depot, the world’s largest home improvement retailer, was estimated at $3.9 billion in 2023 by research firm GlobalData.
Most independent dealers do not have that in their budget. Actually, none of them have that in their budget.
But they’re not folding their digital cards. While independents might be outspent by giant national players, many are heavily engaged in developing the digital tools, systems and culture to bring efficiencies and advantages to the competitive landscape. And for many that means investment in digital communications and ecommerce.
Turbo-boosting the B2B experience
By Chris Fisher
VP, Building Supply Division
eCommerce & EMEA
The lumber industry is primarily a business-to-business (B2B), where transactions and sales occur between dealers and contractors rather than directly to individual consumers. While individual consumers may purchase lumber and building materials products from retailers for small-scale DIY projects, most of the lumber industry's sales and transactions occur between various businesses along the supply chain. This B2B nature is a defining characteristic of the lumber industry.
For medium sized and regional dealers, especially family-owned businesses, being compared to “big box stores” is cringeworthy. This is due to the nature of big box brands, such as Lowe’s, serving the consumer. Smaller dealers thrive on the relationships they’ve built with their contractor customers. This relationship is built on customer loyalty and experience. Contractors trust the dealer to be consistent and available, and know the dealer understands their needs without asking and keeps their past jobs and orders safe and ready for the next project. This brings us to the idea of B2B ecommerce.
Ecommerce combines the power of a building materials dealer’s inventory, warehouse processes, accounting documentation, that fuels the online shopping experience for project ordering. Where online shopping is the experience of “adding to cart” and “pick up in store”, a proper ecommerce solution involves a B2B experience spanning layers of the supply chain: suppliers, distributors/dealers, and the contractors.
Ecommerce Connected to Your Business Operations
Integrating all the areas of the supply chain that dealers manage means building supply businesses that can not only deliver exceptional customer experience for their contractor clients but can enjoy their perks in their purchasing, inventory, and accounting by implementing the ecommerce strategies inherently connected to their POS and ERP systems.
With this integrated setup, a dealer is now offering their contractors:
Real-time inventory visibility, such as integrating inventory management systems with the Ecommerce platform to display accurate stock levels and availability. This transparency helps contractors plan their projects effectively and avoid delays due to out-of-stock items.
Enabling takeoffs, orders, and project management allows contractors to build takeoffs and place orders online, track materials availability and status, view order history, and manage their projects seamlessly. This convenience saves time and streamlines the procurement process.
Offer customization options with Spruce ERP, which has built-in tools for contractors to customize products, such as easy-to-calculate tallies for specific lumber dimensions and specifications. This tailored approach caters to their unique project requirements. This also serves the dealers’ warehouse staff well by minimizing errors in picking through the ERP warehouse management system.
Implement secure payment gateways secure payment gateways that allow multiple payment options (credit cards, purchase orders, ACH, etc.) to ensure a smooth and secure checkout process.
Provide detailed product information between the ERP product list supplied by any vendor or buying group catalog, and the ecommerce storefront grouping. Dealers can efficiently offer comprehensive product descriptions, technical specifications, installation guides, and other relevant resources to help contractors make informed purchasing decisions.
Customer loyalty and customer relationship management (CRM) tools utilize CRM systems to track customer interactions, preferences, and purchase history, enabling personalized service and targeted marketing and loyalty efforts.
In summary, ecommerce is not limited to “online shopping.” It's about a fully integrated mobile storefront, loyalty programs and portals through a POS system, and accounting, business operations and warehouse management through the ERP system.
ECI Solutions offers a fully integrated solution to the building supply industry through Spruce ERP and Spruce eCommerce.
Integrated Ecommerce
the Home & Building Supply Industry Needs to Know
1: Retail tech levels the playing field
2: Increase in DIY and remodeling
3. Labor challenges—from a lack of quantity to quality
4. Succession: to sell or pass down
Traditional LBM dealers face a stark reality—the game has changed. Gone are the days of relying solely on foot traffic and physical storefront appeal.
Today, online giants and big-box competitors wielding powerful tech arsenals dominate the landscape. But the surge in retail technology presents a golden opportunity to level the playing field, cater to modern consumer expectations, and thrive in the new retail ecosystem.
Embracing retail technology isn’t just a fad; it’s a lifeline for LBM dealers in the digital age. The change we’ve seen in LBM retail thus far is only the beginning.
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Top 2024 Trends the Home & Building Supply Industry Needs to Know
More people are working with the home they have because they’re locked in an interestrate that is now unattainable. They are investing in keeping that and making it work rather than looking to buy new and double their interest rates.
Fueled by a combination of cost-consciousness, home improvement enthusiasm, and readily available online resources, Do-It-Yourself (DIY) and remodeling is on the rise.
Forward-thinking businesses are building bridges with the next generation. This includes partnering with local high schools and community colleges on mentorship and vocational training initiatives. Opening the eyes of students and educators alike to the rewarding career paths in the lumber and building supply industry is crucial.
Embracing technology like recruitment platforms, AI-powered resume screening, and online onboarding can streamline the hiring process and attract a wider pool of qualified candidates. Think outside the box about employee development programs, offering paid apprenticeships and trade certification opportunities, and creating a culture of growth and learning.
Building such a plan requires open communication, shared vision, and clear roles for the next generation. It is also important to build strong relationships with employees, customers, and the community to demonstrate a commitment to more than just profit.Preparing the lumberyard for sale becomes paramount for those choosing to let go. Investing in technology such as: increases efficiency and transparency, making the business more attractive to potential buyers.
Source: ECI 2024 Trend Analysis Report
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TREND ANALYSIS REPORT
Top 2024 Trends
Technology: