What's next for tech in LBM?

Improving customer service

Perna, a self-avowed “lumber guy,” says he uses tech to “create operational efficiencies and reduce friction” for Hamilton Building Supply. In practice, that pertains largely to streamlining customer service. Perna says his company has invested in its online store (powered by TOOLBX) to make ordering easier and more efficient. Tracking online orders helps surface crucial data about new or existing customers, which can be used to analyze metrics like share of wallet and to see which product lines people prefer. An active online presence also provides an opportunity for speedy service. 

“Whichever dealer responds faster often gets the sale,” he says. Speed is just the beginning, however, as Perna says delivery is the brass tacks of the business. That means “being there when we say we’re gonna be there, and getting products to a site on time or even ahead of schedule.” 

Hamilton recently upgraded its delivery management system, which Perna said was initially met with resistance from drivers and dispatchers, as it revealed underlying issues that needed to be addressed. Now, however, Perna says workers have come around on the new system, as it adds accountability and clarity to ensure everyone’s on the same page. 

Part of that commitment to accuracy is taking photos of deliveries to document and confirm orders are correct. “We’ve added QR codes to deliveries to rate the experience. Customers can commend the driver or give feedback if something was screwed up,” he says.

Not everything has to be high-tech, though. “We prioritize face to face dialogue rather than an email. We don’t want to lose the human aspect of business, despite the use of tech,” Perna says. 

There’s an app for that

According to Thad Shuler, president of S.C.-based Southern Lumber & Millwork Corporation: “The lumber industry’s 50 years behind other industries. We have to make it easy for customers to do business with us.” 

To get his company up to speed, Shuler made a commitment to invest in an app, which he says took two years to build and refine. It was met with no small amount of resistance. “You’ve got to be committed to change, because people are always going to resist change,” he says.

The app, which was made for contractors, streamlines online ordering and features the company’s entire inventory pictured in all its glory. It also captures crucial data points that enable Shuler’s team to analyze customer loyalty and to uncover potential sales angles. The data points are used to create a customer “report card.” 

Looking through data, Shuler considers: “What opportunities are you missing? If they’re buying lumber, what about doors and windows?”

The upfront costs of the app were not cheap, though Shuler says the ongoing monthly fee is “nominal.” Additionally, Shuler says the company created a landing page that hosts ads and sponsorship content to help recoup costs on a consistent basis.  

The app streamlines the front end of the customer journey, but there’s still plenty to do to finish strong. Shuler prioritizes the importance of presentation, noting that customers have been spoiled by Amazon’s swift delivery methods. It’s one thing to deliver the correct items in a timely manner (Southern Millwork counts three different ways to ensure accuracy), but Shuler says his company strives to go the extra mile to make deliveries presentable and tidy. 

Making peace, productivity with tech 

Andrew Roise, VP of enterprise applications for Kodiak Building Partners, says technology in lumber is about “getting people to buy in and embracing a willingness to change.”

Roise, who previously worked with Epicor, suggests plucking low-hanging fruit when it comes to maximizing workplace tech before splashing cash for shiny new software. “Take advantage of proven solutions, as ERPs are expensive,” he says.

To extrapolate data in a meaningful manner (and to prevent duplicated effort), inter-departmental collaboration and communication is essential. Ensure your different departments are on the same page regarding customer analytics as it relates to opportunity tracking, wallet share, truck utilization and project cycles, he says. 

Whatever system or software you opt for, it’s essential that it “helps employees do their jobs better” and helps you “strengthen your strengths,” Roise says. Anything else is likely just additional, potentially expensive noise.

Speaking on the topic of AI, Roise takes a hopeful yet practical view. “Your job’s not going to be replaced by AI; it’ll be replaced by someone who uses it effectively. Learn how to add value on top of AI,” he says. Roise cites Read AI, which can summarize and transcript meetings in real time, as a particularly useful tool. Ultimately, those who learn to wield AI to boost sales or increase efficiencies have little to lose and much to gain.

Cybersecurity should also be on the minds of lumber pros. Roise says his team shows Kodiak execs real-time cybersecurity attack attempts to drive home the level of the problem. The company also uses multi-factor authentication, and it consistently educates employees on how to safeguard data. 

Getting your team on board

“Tech can solve a lot of problems, the tough part is choosing the right software for your specific company,” says Neil Agarwal, president and CEO of Frisco Woodline.

The other tricky bit is getting (and keeping) everyone on the same page of music. He says Frisco Woodline is “mostly a Google business” and prioritizes other cloud-based services (like Dropbox) to ensure data preservation. It also uses a platform called Ninety to increase communication and collaboration.

“People come from all walks of life in this industry, but it’s on us to make sure everyone understands how their work ties to the larger goal,” says Agarwal. 

When it comes to tech, Agarwal suggests it’s not enough to enforce new tools or tactics in a top-down manner. “Identify internal champions and influencers who can assist with change. Find people in different departments who can help champion the change you want to effect. You can only do so much from up top. You have to have buy-in, or your change is doomed to fail,” he says.

Whatever you do, avoid the trap of chasing shiny software or buzzy brands just because you heard a competitor’s using it. “Make sure it’s a real problem you’re trying to solve. Ensure with your team that what you’re investing in is worthwhile,” suggests Agarwal. 

Then, follow up. And continue to do so. “After each project, we talk about what went right and what went wrong and do a debrief. We’re trying to foster a culture of continuous improvement. If you don’t hear frustrations or challenges, they’ll fester. You have to solicit honest, transparent feedback,” he says. 

That sort of open honesty is essential when it comes to rolling out new tech—or when doing just about anything else in business.