Builders FirstSource fell short of its digital sales target for 2024, but the company remains steadfast in its long-term goal of reaching $1 billion in annual ecommerce sales.
The company is a leading manufacturer and supplier of building products, prefabricated components, and related services. However, Builders FirstSource is still in the preliminary stages of its B2B ecommerce journey.
In February 2024, the company launched an updated digital platform designed to streamline and enhance the building process for contractors and builders. The platform offers a wide range of features aimed at improving efficiency and collaboration, including:
- Project document storage tools
- 3D home previews
- Online material estimates and ordering
- Delivery status tracking and job scheduling
- Project planning tools, including intake and mark-up
- Structural adjustments and finish selections made online
- Collaboration tools for reviewing frames with suppliers and builders
- Requesting estimates across all product categories
- Reviewing quotes, purchasing materials, and tracking orders
- Aligning material receipt with labor needs through scheduling
- Viewing invoices and tracking overall project costs
Builders FirstSource sets ecommerce sales goals
Despite falling short of its initial 2024 sales goal, Builders FirstSource is focused on expanding its digital presence and refining its ecommerce offerings in the coming years.
For 2024, Builders FirstSource generated $110 million in incremental ecommerce sales, though it missed its original $200 million target, as chief financial officer Peter Jackson reported during a recent earnings call.
“Since launching in late February, we’ve processed nearly $600 million in orders through the digital platform, including $83 million from new and existing customers,” Jackson shared. “While we’re pleased with the progress, market challenges in our target builder segment have led us to revise our expectations, now forecasting approximately $110 million in incremental sales for 2024, down from the original $200 million target.”
The company acknowledges that introducing innovative technology to an industry traditionally reliant on manual processes has been one of the early challenges.
“Digital is still very exciting,” Jackson said. “The product is cutting-edge and unique in our industry. But it’s modern technology in an industry that hasn’t historically embraced it quickly. It requires a shift in thinking toward greater efficiency. It’s been more difficult than we initially anticipated, but the momentum is there, and we’re committed to pushing forward.”
While Builders FirstSource didn’t meet its short-term sales goals and continues to face slow adoption by contractors, the company remains optimistic about its long-term prospects.
“Despite the slow start, we are confident that we will reach our goal of $1 billion in digital sales by 2026, as we grow our share of customer spending and continue to attract new customers,” Jackson concluded.
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