Driving Efficiency & Specialist ERP

According to a survey undertaken by the Royal Institution of Chartered Surveyors (RICS), Britain’s construction sector stagnated at the end of 2022, with home-building hit the hardest.

Highlighting the impact of the economic downturn, the industry’s net workloads balance dropped to -1% in the fourth quarter, from +17% and +30% in the previous two quarters. While this report focused on the construction sector as a whole, the timber industry will certainly feel the impact, with many business owners now considering new ways to drive efficiencies and maintain overall profit margins.

Harnessing your data

While many are well-aware of the valuable insight their data holds, some are still in the dark about what is really going on across their organisation. There are a number of potential reasons for this, from a reliance on paper-based processes, to a lack of interaction between departments leading to siloed and disintegrated data. For a timber merchant to see a real performance uplift, all teams need full visibility of the entire operation. Armed with this information, more informed decisions can then be made to improve key processes and drive profits.

The benefits of a specialist ERP system

First thing’s first – what is an ERP system? More commonly known as business management software, an enterprise resource planning (ERP) system is a tool that all departments within an organisation can utilise to manage key operations, from inventory management to accounting and purchasing.

ERP systems are designed to centralise data and streamline ways of working. Once a piece of information is uploaded to the system, it can be accessed by anyone, at any time. Should your most valued customer call to enquire about the status of their order whilst you are off site, a colleague can simply log-in and provide an update. This is vital in today’s climate, when efficient and dedicated customer service is key.

Instead of wasting time searching for important, yet hard to find information, an in-built document management system can retrieve files in just a few seconds, with staff using simple phrases or single word search terms. Similarly, with everything saved on a central system, teams can start to build an accurate picture of a customer’s order history, allowing sales representatives to add a more personalised touch to their service.

Simplify purchasing

From both a logistical and financial point of view, stocking the wrong items or too much inventory can cause big problems, and no matter how confident you are in your own processes, this is a mistake few merchants can afford to make. The volatility of today’s market has highlighted how the price of certain product lines can suddenly plummet or increase, and in such a climate, merchants need to be able to adapt in order to survive.

If cash is tied up in the warehouse or in unwanted products gathering dust on the shelves, it cannot be reinvested in other parts of the business and may result in customers choosing a different supplier. ERP systems can put an end to this problem, offering a range of purchasing options including automated ordering and the ability to order stock based on past PO’s. It’s common that timber merchants might need to stock very specific product lines, so the ability to integrate special orders and vendor catalogues into the system, will also help to ensure the right items and quantities are ordered.

Overcoming the hurdles that the timber industry is currently facing is certainly no small task, and with margins increasingly tight, prioritising efficiency saving is key. While generic, off the shelf ERP systems may bring some benefit, an ERP system that’s built by merchants, for merchants, can help drive performance, understanding the specific day-to-day challenges merchant businesses face and offering features designed to overcome them.

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