NEWS EXTRA SUSTAINABILITY TAKES
SUSTAINABILITY IS GARNERING considerable attention from both consumers and small to medium-sized businesses. What’s more, builders’ merchants are also beginning to recognise the advantages of adopting eco- friendly practices. It’s not just about appearances though; transitioning to environmentally conscious business practices can lead to significant cost savings too. Sustainability and the energy-intensive building and construction industry may seem incompatible, but there are now specific initiatives to improve the link, for instance organisations that advise businesses on responsible sourcing of materials and resources.
As the construction sector at large goes green, builders’ merchants should also be making changes to minimise their environmental footprint. In the UK alone, there are 354,000 wholesale businesses and builders’ merchants represent a key part of this number. Builder’s merchants account for up to 85% of the UK’s built environment, by supplying a wide range of building materials, according to AMA Research. Together with their suppliers, they also contribute over £40 billion to the economy every year.
But many are just starting to dip their toes into the world of sustainability, influenced in part by statistics such as 89% of small business leaders consider a company’s green credentials before deciding if they want to work with them.
Wholesalers and distributors in the building industry easing into the world of sustainability are turning to technology to reach green targets and support efforts. Cloud-based software, like Enterprise Resource Planning (ERP) solutions including Profit4, can be a game-changer, by bringing together all the different
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aspects of a business – such as inventory, accounts, CRM, and logistics – so management can see the big picture and identify changes necessary.
Businesses are switching to more eco-conscious ways of doing business for various reasons, but the increasing customer demand for more environmentally-friendly and greener practices cannot be undervalued. A good measure is the demand for sustainable products, which has increased and is now a major factor in purchase decisions, with 62% of UK consumers now rating it as an important criterion.
Surveys are now consistently citing customer pressure and the desire to enhance brand reputation as the primary motivations for adopting sustainability across all industries, not just amongst builders’ merchants. As consumers become more aware of the impact of climate change, they are demanding more, resulting in environmentally conscious brands tending to enjoy greater customer loyalty, and maintaining a positive reputation significantly elevates a company’s status.
Another significant driver is brand positioning and the desire to stand out in a crowded market. Recent discussions with our customers in the builders’ merchant trade, indicate that while sustainability is on their radar, they are only now beginning to use it as a differentiator to create an environmentally friendly image to distinguish from competitors. Companies leading the way include Cemex, Harlow Timber Group, Robert Price and Saint Global Interior Solutions. Those four Builders’ Merchant Federation members recently joined 27 others as business champions for zero carbon with the Construction Leadership
Council’s CO2nstruct Zero programme.
CO2nstructZero facilitates collaboration between
construction companies that are demonstrating initiative in relation to carbon reduction, sharing their good practice with others from across the sector, and providing a set of metrics that enables the industry, quarterly, to collectively measure its progress to net zero. One major challenge for builders’ merchants in going green is reliably sourcing basic materials, so merchants best placed to reduce wastage are those that use technology to identify real-time availability on timber, steel, concrete, bricks and more. Merchants with access to tools like LUCKINSlive, a source of building product information, are already, whether they know it or not, moving towards a sustainable future. The LUCKINSlive database of over 1 million products is integrated with ERP software to enable smoother and eaiser sourcing and fulfilment. As a feature of Profit4 ERP, wholesalers can gain access to Luckins’ product and pricing catalogue, from over 800 manufacturers. The third-party integration saves wholesalers time by providing a seamless, automated process of lookup, quote, adding stock records, raising sales and purchase orders with full visibility of cost and sales prices and margin at each stage of sales and purchasing processes. Wholesalers are able to place direct delivery / dropship orders for products, meaning that users whose businesses do not physically stock items can order direct from suppliers to ensure a more streamlined and efficient supply chain, reduced costs and quicker service for customers. At the same time, ERP solutions also keep builders’ merchants on top of their stock, identifying fast sellers and stock levels of most
CENTRE STAGE Andrew Davies, head of product engineering, OGL Software looks at how merchants can go green.
popular items. This data helps to fulfil orders but also to reduce the amount of stock held. After all, excess inventory can lead to waste. By providing accurate, real- time visibility into products, raw materials and everything that moves through the supply chain, ERP offers a birds-eye view to merchants of suppliers and companies that are also making sustainable practice efforts, to allow builders’ merchants to choose who to buy from and work with.
Visibility throughout the supply chain enables businesses to make informed decisions such as how and where they can reduce wastage and improve resource efficiency, thanks to technology. Combined with responsible sourcing and supplier accountability, cutting waste reduces environmental impact, and improving resource efficiency means stock can be delivered faster to customers, so construction projects experience less delays, thereby supporting economic growth.
Customers are becoming more loyal to companies that care about the environment, and a good eco- friendly reputation goes a long way, but going green can also help your business stand out from the competition.
You’re not just selling products; you’re selling an image. And these days, sustainability is a hot commodity - especially from a consumer persepctive.
Becoming a more sustainable wholesaler or distributor doesn’t have to be an expensive overhaul. Even small and gradual changes are better than none. Sustainability isn’t just about being environmentally responsible. It can also save businesses money by reducing waste and energy consumption, so being green is something every wholesaler and distributor should consider for future business success. BMJ
www.buildersmerchantsjournal.net November 2023
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