As with many industries, a vast percentage of your LBM business is likely shifting online. And it’s happening much more quickly than anyone anticipated. Even if you’ve been offering online service for years, few LBM businesses were prepared for a shift of this magnitude.
Successfully pivoting to ecommerce requires more than putting up an online shopping cart. You must provide the same high-quality service online as you do in your show room. If you aren’t certain whether your site meets that standard, go through the following list and determine whether you need to make changes.
Self-service is the entire point of ecommerce sites and customer portals. They allow customers to find information, transact business, and manage their affairs themselves. Many homeowners would prefer to find and purchase products without going through a service rep. Contractors want to print old invoices and pay their account balance without contacting your accounting department. Your site should offer self-service options for every stage of the sales cycle: from pricing and inventory checks, to submitting quotes and orders, to paying invoices and tracking account history. Note: self-service is not a replacement for traditional customer service. There will always be issues customers can’t resolve themselves and times when they will want to speak to a real person. The goal is to add self-service as an option to the many services you already provide.
Your staff’s knowledge and experience are as relevant and valuable as ever. As your customers move towards more self-service and have fewer face-to-face interactions with staff, you must find ways of continuing to share that expertise through your site. Resources such as buying guides, product FAQs, and how-to explainers are all ways to educate your customers and help them find the right product. Your service staff are the key to creating this kind of valuable content. Not only do they know your products, they know your customers and your customers’ common questions. Have your marketing team or a freelance writer build a library of educational resources based on input from your service staff. Your goal is to make your site the go-to destination for product information and education. Helping customers find the best solutions for their job or home is a reason for them to choose your site over your competitors’.
Since we can’t reach through our monitors to hold and touch products (yet) your site should do as much as possible to create a fully developed sense of your products. For example, simple videos where someone handles, describes, and/or demonstrates using a product can be highly effective. (There’s a reason “unboxing” videos are a top category on YouTube). Even better, offer ways for your customers to interact with products. For instance, an online door configurator that builds a composite image lets people experiment with different options when creating custom doors. A visualizer tool could let a customer upload photos of their home and then try out different siding or roofing options to see which they like best.
Merchandising should be an element of every ecommerce site the way it is for every retail center. Strategically promoting and pricing specific products is a great profitability strategy. You can merchandize even more effectively with ecommerce platforms that allow you to personalize content to different users. For instance, your homepage might display different products based on the customer profile. (So roofing customers might see tiles and shingles, whereas remodelers might see cabinets and fixtures.) Or you might show your “A” customers special offers not available to “B” and “C” customers. Your Marketing team should have a plan for selecting and highlighting products throughout your site the same way they might plan retail displays or end caps. If your platform allows personalization, have your team come up with some ideas for how to segment your customers.
Ecommerce is NOT set it and forget it. Technology and customer expectations are constantly evolving. Taking a proactive stance towards technology and integrating new, relevant tools can make a huge difference for your business. Open APIs are essential to doing this. APIs are bits of code that allow software programs to interact and share information. Open APIs are accessible to developers so it’s possible for businesses to build their own integrations with other programs. Building custom integrations means you can serve your customers in ways your competitors can’t. For instance, think about all the applications your customers use to manage their businesses, such as cabinet design programs, job management apps, and billing software. If your site could integrate with those platforms, allowing customers to see information about their jobs when browsing your products, you would be a one-stop shop for your customer’s entire business! Even if you aren’t in a position to build custom integrations today, make sure your ecommerce platform has open APIs so you have freedom to grow in the future.
Whether your business has a solid online presence or you’re just entering this space, this is a moment for action. Take a critical look at the online experience you’re offering customers, think about the experience you want to offer them, and start planning the steps you need to get there. That will set you on the right path to successfully serving your customers wherever they are.
Simon Sikora has been working in ecommerce in some form for over 25 years. As the COO for a millwork company in the northeast, he grew online service to be roughly 20% of the business. He is now the Director of Ecommerce Products for DMSi Software.
This article was originally published in the November 2020 issue of Lumber Co-Operator magazine.
In six years, SRS Distribution has grown by a factor of 14, adding almost 100 branches across 35 states*. As described in a case study from Progress Software, SRS’ speed of expansion is possible through their use of Agility SaaS from DMSi.
(*SRS has continued to grow since the original publication of this article. As of April 2016, they have 153 locations in 39 states).
SRS formed in 2008 with a plan to grow through rapid acquisitions. They wanted to use the same ERP system across all locations in order to reduce confusion. The system would have to be flexible enough to keep pace with SRS’ growth.
Agility SaaS provided the easy scalability SRS wanted. The hosted solution meant they just needed a reliable internet connection to get a new acquisition up and running. Sonya Wells, Vice President and Corporate Director of Information Services at SRS, says Agility makes a big difference during transitions. “Within three days, we finalize the acquisition, conduct a physical inventory using Agility, provide onsite training, and open for business on Monday. Customers walk in the first day and our employees won’t miss a beat.”
SRS has had astonishing success. In six years, they have gone from eight locations to 107. Wells says the SRS Mergers and Acquisition group continues to be amazed at how quickly her team executes implementations. “With the help of Agility, we can do in three days what it takes our competitors at least one month to do. That translates into a significant competitive advantage for us.”
Read the full Progress case study here.
WASHINGTON, DC – July 17, 2017 – The National Lumber and Building Material Dealers Association (NLBMDA) announced today that DMSi is the newest member of the association’s Manufacturers and Services Council (MSC). The council is composed of the leading building material manufacturers and service providers serving the LBM industry.
NLBMDA’s MSC members are established industry leaders who supply products and services to lumber and building material dealers and regional chains across the nation. The dedicated members of the council share a commitment to promoting and enhancing the success of independent dealers and regional chains.
DMSi serves the building materials industry exclusively. The company offers a complete line of products for LBM dealers, including the Building Results CRM, which helps identify new opportunities, manage territories, and track pipeline activity.
DMSi’s end-to-end ERP, Agility, covers every step of the product cycle from purchasing and receiving to sales and accounting. Agility is a complete platform with integrated solutions for e-commerce, payment processing, WMS, and more.
“DMSi is excited to partner with a premier association like NLBMDA. We appreciate this opportunity to work with other members of the MSC to better serve the building material industry,” said Jason Niemi, Director of Platform Integrations for Building Results CRM.
For more information on the NLBMDA Manufacturers and Services Council, click here.
View the original press release here.
OMAHA, NE. –Oct. 2, 2015– DMSi Software today announced that it has been named a 2014 Progress Visionary Award winner. The Progress Global Partner Awards is an elite program highlighting Progress partners that have turned their ideas into business reality.
DMSi provides the leading Enterprise Resource Planning (ERP) software to the building materials industry. They leverage Progress’s OpenEdge platform in their Agility ERP system and integrated CRM. Their new rapid application builder, Agility | DIY, allows customers who have no programming experience to create their own business applications.
“We are thrilled to honor DMSi with the Progress Visionary Award,” said Kimberly King, Vice President, Channels, Progress. “The quality of product and service put forth was truly inspiring and a good example of the business practices, honor and commitment that are the guiding principles behind our business.”
Progress and its ecosystem of more than 2,000 Partners support more than 4 million users. The Progress Global Partner Awards program was established to honor those partners that rise above and beyond, in a variety of categories, to not only meet, but exceed the needs of the end-user community. This year’s awards were extremely competitive, with more than 150 partners evaluated. Awards were presented in nine categories including – Partner of the Year, SaaS Excellence, Partner Collaboration, Business Focus, Innovator’s Award and more.
“We are honored to accept the Progress Visionary Award,” said Trent Paben, Chief Operating Officer for DMSi. “Progress has built an unrivaled suite of fully integrated tools. These tools allow us to bring innovative solutions to our markets and rapidly adapt to technology changes.”
About DMSi
DMSi provides integrated business, accounting, mobile and eCommerce solutions to the lumber and building materials industry. Their operation, including software development and customer support, is located in Omaha, Nebraska. For more information, visit www.dmsi.com or call 800-347-6720.
About Progress
Progress (NASDAQ: PRGS) is a global software company that simplifies the development, deployment and management of business applications on-premise or in the cloud, on any platform or device, to any data source, with enhanced performance, minimal IT complexity and low total cost of ownership. Progress can be reached at www.progress.com or 1-781-280-4000.
The building materials industry is beginning to embrace new technologies. Forward-thinking managers realize the potential of mobile devices and cloud-based solutions.
But updating a business is more complicated than buying tablets for everyone. As a recent article in Harvard Business Review explains, “Becoming a true digital organization is not just about becoming tech-savvy. It means embracing a new culture and mindset.” Managers who want to lead a digital revolution must make sure they bring the rest of the company with them.
For all its benefits, modernizing a business imposes stress on the people in the organization. If employees rely on phone calls, faxes and notepads, replacing those things with modern alternatives will completely disrupt their world.
For example, CRM systems make sales reps more effective by giving them one place to manage information. But for reps used to tracking appointments in an Outlook calendar, writing product lists in a notebook, and posting reminders on Post-its, a CRM unravels their entire system. They have to perform their job with an unfamiliar tool. Tasks that took five seconds now take five minutes. The fact that the CRM will eventually make them more efficient doesn’t make the transition any less painful.
Managers who want to successfully implement new technologies need to do more than provide training. They have to help employees change their default responses. People should automatically reach for their computer or tablet instead of their phone or pen. And as the same HBR article observes, “Managers and employees will need to navigate the digital frontier together, and this requires a new set of leadership skills.”
Leading a change is different from leading a department. Managers can’t shove their team through the process or get results via sheer force of will. Instead, they need to encourage, support and reward, so employees want to adopt the new technology. The following strategies can help ease a transition.
Clarify the benefits While management may be thinking about the cost-savings of new accounting software, employees are thinking about how much faster it would be to just make a phone call. Managers should talk with their teams about benefits that are both tangible and relevant to them. Give specific examples of tasks that will be easier or busy-work that will be eliminated once people are comfortable with the new resource.
Reward achievement Reinforce the idea that success is possible by celebrating progress. For example, give a prize to the sales rep who registers the most customers on the new web portal, or have a pizza party three months after implementing new software. Identify milestones and track progress in a visible way, such as a chart in the break room.
Be patient Changing behavior is difficult, especially behavior developed over a long period of time. Employees may have been doing their job a certain way for 10-15 years. It’s not realistic or fair to expect them to be equally proficient in the new processes after a few months. When someone hits a significant roadblock, find additional resources alternative methods to help them.
Transforming an organization is more than upgrading infrastructure. The people in that organization must transform as well. People are understandably excited about the possibilities that technology offers. But modernizing a business can’t be a one-man crusade. Managers who focus on the collective success of their team achieve better results than those focused on a personal vision of the future.
Kerry Blusys is a senior account manager for DMSi with over 25 years of experience in the building materials industry.
Tom Matula, director of administration for DMSi customer PMC Building Materials, is featured in a ProSales Magazine article about innovative IT executives. Matula emphasizes the need to include technology in business development goals.
PMC uses cloud-based solutions for much of its operation including DMSi’s Agility in the hosted environment. “The cloud is getting very big for us,” says Matula. Agility in the hosted environment provides PMC with real-time data about things like available inventory and order statuses. It also relieves them of the cost and risk of maintaining their own server.
PMC’s long-term goal is to launch an e-catalog to allow contractors to make online purchases, but they are taking a cautious approach. Matula is laying the groundwork with a series of smaller steps. Search engine optimization (SEO) is increasing visits to PMC’s company site, and analytics tools identify untapped marketing opportunities.
Matula is aware of the challenges and potential risks of e-commerce, but sees a greater danger in entrenching the company in old technology. The wide number of LBM dealers and distributors who still use outdated operating systems such as Windows XP is “scary.”
PMC has been a DMSi customer since its founding in 2008. In a follow-up to the article, Matula touched upon PMC’s go-live experience when launching Agility.
OMAHA, NE – May 24, 2017 – DMSi Software is pleased to join the sponsors of an upcoming industry project: the “Forever Forest” traveling exhibit.
“Forever Forest” explores how we live, work, and play in the forest. It touches every step of the lumber journey from harvesting and milling to distribution and retailing.
The 3,500-square foot, interactive exhibit will teach visitors the importance of sustainable harvesting, the value of building materials and why it’s OK to produce them, and the many ways trees make up our homes.
“Forever Forest” will debut October 2017 in Omaha and spend the next ten years traveling to museums and state fairs across the country.
“Forever Forest” is a joint project between DMSi Software, the Omaha Children’s Museum, and the Hardwood Forest Foundation. Union Pacific Railroad is the exhibit’s presenting sponsor.
To learn about remaining sponsorship opportunities, please contact Kim Reiner, Marketing and Public Relations Manager at Omaha Children’s Museum at 402-930-2356 or kreiner@ocm.org.
DMSi provides the leading business and accounting software platform for the lumber and building materials industry. Their Agility ERP system includes integrated CRM, eCommerce, and mobile sales solutions.
OMAHA, NEBRASKA, January 2021 – DMSi Software announces the acquisition of eLIMBS, an Ohio provider of inventory management software solutions for hardwood logging, sawmill and lumber processing facilities.
DMSi specializes in inventory management software for dealers and distributors of building materials including millwork, drywall, contractor yards, and lumber. They provide a full range of software solutions for the hardwoods industry including TallyExpress, the computer vision tally app which allows customers to take a picture, using a smartphone, and do a full end tally with 99% accuracy all within a matter of seconds.
“DMSi loves serving niche markets. With all the unique software requirements of the hardwoods market, it’s about as niche as you can get!” said Henry German, co-owner of DMSi. “We’re excited to combine our resources with eLIMBS and provide the best software and service on the market, timber to retail, for the next generation.”
Since the company’s founding in 1976, DMSi has grown to over 170 employees serving over 400 businesses and 15,000 users of its inventory software. Like eLIMBS, DMSi has specialized in combining technology solutions for the building materials industry with an extraordinarily dedicated service component.
Omaha, Nebraska – October 16, 2014 – DMSi was named “Partner of the Year” by software developer Progress. The award was given for “year over year growth driven by product innovation.”
Progress praised DMSi for taking the lead in employing new software technologies and for evangelizing their use among other developers. The company is an early adopter of tools such as Rollbase and Corticon, and has used these resources to enhance their ERP system, Agility.
Progress also noted DMSi’s advances in business software development. The most recent example is the company’s successful move from Salesforce.com to a custom-built CRM system. DMSi is currently using Rollbase to develop similar cloud-based products for their customers in the building materials industry.
About DMSi
DMSi provides business and accounting software exclusively to the lumber and building materials industry. They have over 12,000 users at nearly 400 dealers and distributors across North America. Founded in 1976, DMSi is privately owned and headquartered in Omaha, Nebraska.
