New Software for Contractors Can Connect Dealers Better Than Ever—or Potentially Shut You Out

Depending on the software they use, contractors could be right next door and never call out to you.

By Craig Webb, President, Webb Analytics

Smaller LBM dealers who have struggled for years to improve their internal software now face a new challenge: Their smaller customers are embracing software built for them that dealers will need to connect with … or face the prospect of getting cut out of potential business.

Big dealers and box stores are making these linkups now, often in ways that could give them an edge over LBM competitors. For instance, ABC Supply just announced its integration with Leap CRM. Contractors using Leap now can get real-time price quotes from local ABC Supply branches, turn signed estimates into confirmed orders instantly, and see ABC’s delivery schedules. There’s no need to visit ABC’s website for those services.

Meanwhile, Buildxact’s bid-writing tools for small builders and remodelers automatically pulls product pricing from The Home Depot. If that project estimate gets approved, it’s logical that The Home Depot could get called upon to supply the goods.

Building material dealers’ software historically has focused on internal activities—accounting, dispatch/delivery, warehouse management, etc. Most ERP systems didn’t look outward until a few years ago, first with electronic invoicing and more recently with e-commerce shopping. Likewise, smaller contractors historically have operated on little more than QuickBooks and Excel spreadsheets. 

Now that’s changing, particularly with programs for specialty contractors. Companies like Construct CRM have focused on roofers and exterior replacement specialists to offer free or low-priced software that handles project management, sales, invoicing, payments, financing, and scheduling. In the past month, Construct CRM has announced connections with Richards Building Supply, Eikenhout, Ray’s Roofing Supply, Murphy’s Roofing Supply, ARS Building Products, L.K.L. Associates, and J&L Building Materials. Those dealers, in turn, will be urging their customers to embrace Construct CRM.

Similarly, SRS Distribution has begun integrating with Service Titan’s platform. ServiceTitan customers now can browse the SRS catalog, view SRS pricing on products, place orders directly with SRS branches from the ServiceTitan platform, and receive automated status updates from order to delivery.

The software explosion also takes in LBM-adjacent industries. Cilio’s customer relationship management software caters to businesses that provide installation services for Lowe’s, The Home Depot, and Costco. One of Cilio’s customers manage 10,000 installation orders a month with the software. And for paint-oriented dealers, Rundoo seeks to serve their unique needs, such as by managing tint formulas while also improving ordering, inventory, customer management, and point-of-sale.

Cilio President Rick Olenjik, a former executive at DMSI, said it has been natural for lumberyards’ software suppliers to focus on making dealers' own operations better. Now, it’s important for dealers to also pay attention to software meant to improve their customers’ life, he said. Given all the tools these programs have, contractors aren’t going to want to have to enter information into their own systems and then repeat that step with their dealers. Instead, Olejnik believes, they’ll want a seamless connection with their suppliers now that they have that option.

“Contractors shouldn’t have to bounce between systems just to keep a job moving,” Patrick Fingles, CEO of Leap, said in a news release.

“Contractors juggle a lot and are always looking for ways to work smarter,” Kris Kieffer, director of business platform and customer enablement at ABC Supply, said in the news release about Leap. “This integration is about making their day a little easier, putting everything they need right where they’re already working. It’s one more way we’re helping them avoid mistakes and stay focused on what matters most: running their businesses.”

What’s next? Buildxact has rolled out an AI estimator calculator that uses artificial intelligence to translate plain-language requests into plans and estimates. Again, it pulls live material prices and SKU information from The Home Depot’s catalogs. Meanwhile, Ace Hardware announced that customers now can buy products from 4,000 Ace stores nationwide and get them delivered by DoorDash. And Construct CRM says it’s busy configuring software that will serve the HVAC, plumbing, electrical, and flooring trades.