Even in the age of digital e-commerce, the construction industry has stubbornly remained rooted to more traditional sales channels. When it comes to B2B purchasing of building materials, the construction industry still prefers to deal in person rather than clicking a button. But e-commerce tools can provide a competitive edge through various advantages that digital solutions can bring. In the retail sector, merchants have been seeing up to triple digit growth in online sales after adopting e-commerce methods. Let’s look at the reasons why e-commerce is a much better option for B2B transactions of building materials.  

    1. E-commerce is more streamlined   

Traditional B2B purchase process for construction materials is very complex. There are multiple approval processes to get through, with various different companies involved. Such a complicated structure makes it harder for buyers to obtain what they need efficiently without delays. A B2B e-commerce platform with built-in process management tools allows for a more streamlined purchasing of materials. 

    2. E-commerce provides better data

Construction industry generally required more sophisticated product data from vendors regarding product specifications, test reports, instruction guide etc in order for complying to different building codes in different areas and for different project applications. A well-designed e-commerce can help buyers and contractors easily get access to the data required with website navigation and good search functionality. 

   3. E-commerce gives a bird’s eye view

B2B purchase is not just about buying the product itself.  The vendor, customer services, logistics and other purchase terms all matter a lot. With a B2B e-commerce platform, buyers can get a full picture of the purchasing solution and a total procurement cost. A good product comparison view will allow buyers to compare apple to apple and make optimal decisions. 

   4. E-commerce makes sourcing easier

Dealing with B2B purchasing of materials in the traditional way involves a lot of calls and visits to vendors, with wait times between quotes and sample requests being made. There’s a lot of effort and time that goes into it, particularly if you are trying to deal with multiple vendors in order to get the best materials at a good cost.  With B2B e-commerce, managing your relationship with vendors is so much easier. From one platform you can easily request quotes and samples from various places, allowing you to quickly pick and choose those that are perfectly suited for your building needs.  

   5. E-commerce is better for custom-made and special order products

   There are so many times in buying construction materials in which you need a customized product. Traditional methods of procuring special orders can introduce a lot of back and forth communication, resulting in inefficiencies and even mistakes.  This is why B2B e-commerce is actually more ideal for custom-made and special order products. Product specifications and requirements can be filled through online templates, simplifying the communication and allowing the vendor to instantly understand what the buyer needs. Also, buyers can issue changes when needed and manage them in a clear and professional way.  

   6. E-commerce reduces errors

   There are many ways for B2B purchasing to go awry during its course. Due to requiring more complex handling of payments and shipping, manual errors become glaring issues that could have costly consequences in the short term and the long term. However, a B2B e-commerce solution automates many of these operations, thereby reducing the chance for errors.  

  7. E-commerce gives purchasers more options

   When you deal with purchasing materials in person, you are limited by your time and your location. Despite your best efforts, you may easily miss out on better deals and more suitable products. With B2B e-commerce, that is much less of an issue. Through digital solutions you can have access to a greater number of options that might be more optimal for your needs.  

   8. E-commerce allows for optimal record keeping

   Lastly, e-commerce gives you the benefit of a more robust and efficient record keeping. With so many processes and organizations involved in your B2B purchasing, trying to follow all the paper records can easily turn into a nightmare. Instead, with a digital platform you can always have all your records in one place, well organized and easily accessible at any time. From orders and inquiries to procurement related information and documents for future reference, you’ll have a reliable central repository of information that will never get lost.    

  Today, when digital solutions are revolutionizing traditional industries, it is time that we move the construction industry to e-commerce when it comes to B2B sourcing of building materials. As we expressed above, this will not only streamline the process of purchasing materials, but also help avoid unnecessary communications and allow companies to get the best prices for materials that are ideal for their needs. It will open up access to a more diverse set of suppliers, allowing innovative ones to stand out from the rest.    

  Of course, it is difficult to move from what you are already used to into a new domain. However, buying patterns are already shifting, and the change may be smoother than you would think. According to a 2017 research by McKinsey, 46% of B2B buyers expressed that they would buy from a supplier’s website if it was possible to do so, provided that the buying experience was efficient.   

All in all, adopting B2B e-commerce will drastically improve the way companies work and elevate the construction industry to new heights.

Reference Link:  https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/when-b2b-buyers-want-to-go-digital-and-when-they-dont