What Can Belgian Building Supply Dealers Learn from Their Swedish Colleagues: 3 Key Lessons

We accompanied a Belgian delegation of building supply dealers and manufacturers to the UFEMAT conference in Stockholm to learn how the building supply industry is organized there. In our opinion, these are the three most important lessons that will be useful for Belgian building supply dealers. We’re also bringing back inspiration to help us ERP Software for Building Material Suppliers to continue improving.

E-commerce is growing, and there's no getting around it

• The share of e-commerce revenue is growing faster every year in Sweden. Between 2003 and 2010, the percentage grew by 3 %. Over the same period, from 2010 to 2017, e-commerce revenue grew by another 5 %.
• 9 % of building materials in Sweden are sold online, and this figure is expected to grow even further and at an even faster rate. Worldwide, online sales of building materials are estimated at 7 %.
• E-commerce allows customers to compare prices and creates downward pressure on prices. But if you’re not online, you can’t be compared to others, and by definition, you’ll be left behind.
• There is also a great need for high-quality product data in Sweden. Unlike in Belgium, there is not yet a well-organized initiative such as GS1. That is why, for example, one of the largest building supply retailers takes its own product photos of its 25,000 products, as this provides a competitive advantage.

Professionalizing Purchasing Groups with Service in Mind

• Just as it is for us, the primary goal of a purchasing group is to improve procurement and leverage economies of scale in areas such as shared back-office functions, IT, and marketing…
• In addition, affiliated members can thus offer more services. It is clear that the building materials trade is shifting from being a distributor and logistics provider to a company that delivers added value and services in both B2B and B2C.
• Services such as packing by apartment or residential unit to be built, helicopter and water transport, and just-in-time delivery
• Some building supply stores have already included as many as 25 paid services in their offerings: don't be afraid to charge your customers for services!
• For example: https://www.xlbygg.se/edvardssons 

Digital %20 Fysical = Fygital of ook wel omnichannel

• Stockholm's largest building materials retailer is focusing on a strong digital presence and is photographing 25,000 products for its e-commerce site
• Customers are allowed to book an appointment online for a consultation with a specialist at the store, for example, regarding bathroom renovations.
• In the space of two years, the number of sales associates on the sales floor went from 1 to 6. They have handy ‘boots”
• There is a fee for the consultation if you decide not to purchase the necessary goods from them.

More information on how to building materials wholesalers be able to organize themselves better by means of Dynamics NAV or Dynamics 365 You can find it here.