Building Efficiency: How automation streamlines order-to-cash processes in construction material manufacturing

By embracing automation, construction material manufacturers can build a future of efficiency, profitability, and customer satisfaction, laying a solid foundation for success in the ever-evolving construction industry.

The construction industry thrives on efficiency. Every part of the process from the architects and contractors to the suppliers and labourers, needs to operate seamlessly to deliver projects on time and within budget.

The role of construction material suppliers is crucial in each project, ensuring a steady flow of bricks, mortar, lumber, and other essential elements to keep projects on track. However, traditional order-to-cash (O2C) processes in this sector are often plagued by inefficiencies, leading to delays, errors, and ultimately, lost profits.

This is where automation comes in, ready to transform the way the construction industry O2C processes work.

Imagine the chaos of a construction site without a blueprint. That's what manual O2C processes in the construction supply chain can resemble. Orders are placed through phone calls, emails, or handwritten forms, prone to errors and miscommunication. Inventory management is a manual juggle, often leading to stock shortages or overstocking. Invoicing and payment collections often involve a mountain of paperwork, leading to slow processing and poor accuracy. This lack of automation leads to:

· Errors and delays: Manual data entry leads to typos, missed orders, and incorrect pricing, causing delays, oversights in deliveries, and rework.
· Production forecasting problems: Lack of real-time inventory visibility leads to stock shortages, holding back project progress and forcing last-minute sourcing at higher prices.
· Slow invoicing and payments: Manual invoicing and payment collection are time-consuming and error-prone, impacting cash flow and buyer relationships.
· Limited customer experience: Manual processes create a slow and frustrating experience for both customers and suppliers.

Fortunately, the construction industry is no stranger to innovation. AI-driven automation is quickly changing the way O2C processes are managed, offering relief from these common pain points.

Implementing AI-driven automation for O2C processes in any industry, not just construction, can result in numerous benefits. Here are the top 5 points to consider:

1. Increased efficiency and accuracy
- Reducing manual tasks like data entry, invoice generation, and credit checks, saving time and minimising human error.
- Faster processing times by automating workflows, leading to quicker order fulfilment, invoicing and payments.
- Improved accuracy with data entry by using automated data capture and validation to eliminate errors in orders and invoices.

2. Enhanced Customer Experience
- Self-service options using online portals for customers to track orders, make payments, and update information on their own.
- Personalised communications based on customer data and behaviour; supporting interactions and fostering stronger relationships.
- Faster resolutions from automated escalation processes an email triage.

3. Improved stock management
- Forecasting based on historical data and market trends to predict future demand, using analytics and reporting.
- Automated re-ordering based on predetermined criteria, great for larger projects where there isn’t room for storage on site or regular orders from stockists.
- Real-time visibility enabling better planning and decision making.

4. Increased profitability and revenue
- Lower overheads from streamlined processes, fewer errors and managing stock more efficiently, leading to cost savings.
- Faster order processing means more time for value adding tasks such as speaking with customers which can lead to increased sales.
- Analytics providing valuable insights to optimise pricing, marketing, and promotions, driving further profitability.

5. Competitive Advantage
- Automated processes can adapt quickly to changing market demands and customer needs, keeping you competitive.
- Use insights gained from reports and analytics, to make decisions allowing you to stay ahead of the competition.
- Improved accuracy, speed, and customer service will ultimately improve your brand reputation.

“It is simple to bring folks on board and teach them how to use Esker’s solution, even virtually. It is very well-embraced and everyone is happy with it.”
Mozima Mohammed | National Credit Manager, Fletcher Steel

“We needed an easy-to-use, single-source solution and Esker proved to be a great fit. The end result will be reduced costs, increased accuracy, improved reporting capabilities for fax and email communication, and the ability to handle both orders and correspondence.“
Corporate Manager of Customer Service, Building Materials Company

As the construction industry embraces digital transformation, O2C automation will become an essential differentiator for success. By investing in automation solutions, suppliers can transform their O2C processes, drive efficiency, and build a foundation for sustainable growth in the competitive construction market.

Here are some top tips to get you started:

· Assess your current O2C processes: Identify pain points and areas for improvement.

· Choose the right automation solution: Select a solution that aligns with your specific needs and budget.

· Integrate with existing systems: Ensure seamless integration with your existing ERP, accounting, and CRM systems.

· Invest in training and change management: Train your employees on the new system and prepare them for the change.

The journey towards automation may seem daunting, but the rewards are substantial. By embracing automation, construction material suppliers can build a future of efficiency, profitability, and customer satisfaction, laying a solid foundation for success in the ever-evolving construction industry.

Please contact me for more information or to request a demo.