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B2B Commerce in Construction: Don’t build it quickly. Build it better.

min read

published on

June 21, 2023

Don’t build B2B eCommerce quickly. Build it better.

The B2B construction industry has long had a reputation for being slow to adopt digital transformation. But, with the arrival of COVID-19 and a new generation of digital-first buyers entering the mix, more companies have realized the benefits that selling their goods and services online can bring.

In racing to adapt, construction and B2B eCommerce has grown too quickly, with many new sites leaving buyers frustrated instead of overjoyed. Just like you wouldn’t start building a house without all the right foundations in place first, you shouldn’t build a B2B eCommerce platform without an effective blueprint in front of you.

The 4 flaws of B2B construction

And how B2B eCommerce can fix them

1. Data maintenance

Data can make or break your B2B eCommerce platform. Unfortunately, due to the sheer amount of information required for each product (for things like safety, quality and unique specifications), the construction industry is prone to poor data management. To ensure that your eCommerce platform has all the product, pricing, and client data it needs to operate efficiently, we recommend integrating it with your ERP system. This will act as a single source of truth, and help your buyers find what they need quicker.

2. Cultural resistance

One of the biggest barriers to a successful B2B eCommerce site is an internal fear of digital transformation, something which is more prevalent in traditional industries like construction. Unless you have complete buy-in from your entire team, they’re not going to use it effectively. An easy solution to this issue is to plan ongoing training sessions for your team, which will go a long way in overcoming any fears and ensuring that your team welcomes your new eCommerce platform with open arms.

3. Materials shortages

The B2B construction industry is more susceptible than most to product and labor shortages. But while there’s little you can do to stop certain materials from running out, there are many ways to minimize the impact it has on your buyers. Integrating an all-seeing B2B eCommerce platform with your back-end inventory will help you keep a close eye on your stock levels, and ensure no one surprises you with an order that you suddenly can’t fulfill.

4. Payments and delivery

Slow payment processes and even slower delivery plague the construction industry. B2B eCommerce can solve both. First, it will enable your business to accept digital requests, making your buyers’ lives easier but also ensuring you get paid on time. Second, it will improve the traceability of all your products and orders, allowing for quicker delivery types and better visibility for your clients.

How the construction industry can benefit from B2B Commerce

Streamlined Procurement: B2B commerce platforms allow construction companies to streamline their procurement processes. They can create online catalogs of construction materials, equipment, and supplies, making it easier for project managers and procurement teams to search, compare, and order the required items. This saves time and effort compared to traditional manual procurement methods.

Improved Supplier Management: B2B commerce solutions enable construction companies to manage their relationships with suppliers more effectively. They can centralize supplier information, negotiate contracts, and track order histories through the platform. This enhances transparency, simplifies communication, and helps ensure timely deliveries of materials and equipment to construction sites.

Cost Savings and Competitive Pricing: By leveraging B2B commerce platforms, construction companies can access a wider network of suppliers and compare prices more efficiently. This allows them to find the best deals, negotiate competitive pricing, and potentially achieve cost savings. B2B commerce platforms also facilitate bulk purchasing and volume discounts, further contributing to cost reduction.

Efficient Project Management: B2B commerce solutions offer features that can enhance project management in the construction industry. Construction companies can use these platforms to track and manage project-specific materials, monitor inventory levels, and ensure timely replenishment. Real-time visibility into product availability and delivery status enables smoother project execution and reduces the risk of delays.

Collaboration and Communication: B2B commerce platforms provide a digital space for improved collaboration and communication among various stakeholders in construction projects. Architects, contractors, subcontractors, and suppliers can access the platform to exchange project-related information, submit bids, request quotes, and share project updates. This streamlines communication and reduces miscommunication or delays caused by manual processes.

Centralized Documentation: B2B commerce solutions offer document management capabilities, allowing construction companies to centralize important documents such as purchase orders, invoices, and delivery receipts. This digital documentation simplifies record-keeping, improves auditability, and reduces the risk of lost or misplaced paperwork.

Integration with Other Systems: B2B commerce platforms can integrate with other construction-specific systems, such as project management software, accounting software, or ERP systems. This integration facilitates seamless data exchange, improves process efficiency, and eliminates the need for manual data entry across multiple systems.

Market Expansion and Business Growth: B2B commerce opens up opportunities for construction companies to expand their market reach. By embracing digital platforms, they can attract new customers, bid on projects in different regions, and engage in e-procurement initiatives with government agencies or large enterprises. This can contribute to business growth and diversification.

By adopting a modern B2B commerce solutions, construction companies can leverage technology to streamline procurement processes, improve supplier management, reduce costs, enhance project management, foster collaboration and pursue new growth opportunities.

Don’t just build the perfect platform. Build an even better relationship

When it comes to developing a B2B eCommerce platform for your construction business, the challenge isn’t to make it the biggest, the cheapest, or the fastest. It’s to build a platform which reflects how your buyers actually purchase construction materials.

In today’s modern world, your buyers don’t have to wait until they’re at their desks to make an order. They can research and purchase the materials they need on-site, simply by using their phones. That means one thing: having a B2B eCommerce platform which is responsive on both mobiles and tablets is a must.

B2B commerce platforms enable construction companies to establish direct relationships with suppliers. These platforms provide a centralized marketplace where construction companies can connect with suppliers, browse catalogs, compare prices, and place orders efficiently. By streamlining the procurement process, B2B commerce improves communication and collaboration with suppliers, leading to better inventory management, cost savings, and faster project timelines. In addition collaboration can be improved with Contractors and Subcontractors, acting as a hub for sharing project specifications, blueprints, and other relevant documents. By providing a centralized communication channel, B2B commerce enhances coordination, reduces errors, and ensures that all parties are aligned throughout the construction process.

By integrating customization options, construction companies can provide personalized experiences for their clients, allowing them to select and customize products, materials, and finishes. This level of personalization enhances customer satisfaction, strengthens relationships, and fosters repeat business. Better relationships in construction also yields beyond the orders as B2B Commerce platforms can facilitate efficient after-sales support and customer service. Construction companies can leverage B2B Commerce to manage warranty claims, provide product documentation, and offer ongoing maintenance services. By providing a seamless post-purchase experience, B2B commerce helps strengthen customer relationships and builds trust with clients.

In summary, B2B commerce offers construction companies a range of tools and capabilities to enhance relationships with suppliers, contractors, subcontractors, and customers, ultimately fostering stronger relationships throughout the construction ecosystem.

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About the author
Arnaud Rihiant
Founder & CEO @ DJUST

Expert in topics on B2B, eCommerce, market trends, business strategy

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