IN THIS ISSUE

• Separating LBM AI reality from the hype 🤖

• Inside Healdsburg Lumber Company's impressive facility 🏗️

• eSignature: Secure document approvals ✍️

• Turn scribbled notes into orders instantly 👀

• Tell us what AI features you'd like to see next 👇

DEEP DIVE

The AI Hangover: Separating LBM AI reality from the hype

Just like your buddy who wouldn't stop talking about crypto in 2021 (and is suspiciously quiet now), the tech world has found a new obsession with AI. Your inbox is probably stuffed with promises about how AI will revolutionize everything from your takeoff accuracy to your inventory forecasting – leaving many LBM dealers experiencing what we're calling "the AI hangover" – that uncomfortable mix of FOMO, skepticism, and decision paralysis that comes when bold AI promises collide with today's actual capabilities.

Here's the reality check: While AI isn't quite ready to handle complex cabinet configurations or automatically adjust cut lists for lumber takeoffs, there are plenty of applications where it's already delivering tangible value. The key is knowing where precision is non-negotiable and where "really good" is good enough.

When close isn't close enough

AI chatbots like ChatGPT are "large language models" or LLMs and are basically prediction engines trained on massive amounts of data. They take their best guess at what should come next based on patterns they've seen before. While they're designed to be as accurate as possible, they can't tell you when they're just guessing. They sound equally confident whether they're 100% sure or just making an educated guess. Unlike a person who'll say "I think" or "I'm not certain," AI delivers every answer with the same poker face.

Current AI excels at tasks where patterns matter but occasional imperfections won't sink the ship. Customer quote follow-up emails? Absolutely. Product descriptions for your online catalog? Significantly better. Sales data reporting and analysis? Turn a week's work into an afternoon task.

But for mission-critical LBM operations, the standards are different. Consider an automated takeoff for a 2,500 sq ft home – even at 95% accuracy, 10 out of 200 materials would be wrong. When those errors involve missing a critical quantity of specialty siding or shipping the wrong door dimensions, the consequences cascade quickly: your contractor is left standing around with a crew, the project schedule slips a week, and your reputation takes the hit.

While AI has made remarkable strides for many business applications, the building materials industry requires a level of precision where even small errors carry outsized consequences.

AI applications that make sense today in LBM

While being realistic about current limitations, there are areas where AI can deliver value now. The key is focusing on applications where its probabilistic nature is an asset rather than a liability:

Internal knowledge base

Create an AI system trained on your product catalog, policies, and procedures that can answer staff questions instantly. "What's our return policy on special orders?" "What are the installation specs for Brand X siding?" "Show me similar alternatives to this discontinued product." The AI might occasionally miss details, but human judgment can verify critical information.

Personalized email marketing at scale

Develop customized marketing messages based on purchase history and customer segments. AI can draft personalized emails for different contractor types that feel individual but can reach your entire customer base. The probabilistic nature means variety and creativity, not cookie-cutter templates.

Data pattern recognition

Use AI to spot trends in your sales data that humans might miss. "Which product categories are growing fastest on Thursdays?" "Is there a correlation between weather patterns and certain material purchases?" The insights might need verification, but the pattern-spotting ability of AI exceeds human capacity.

Content enhancement and expansion

Transform basic product information into rich, informative content. Feed AI your manufacturer specs and watch it generate installation guides, usage tips, and comparison tables. A human should always review, but the initial heavy lifting is automated.

Intelligent competitor research

Monitor competitor websites, social media, and news mentions to generate regular summaries of market positioning and pricing strategies. The AI might not catch every nuance, but it can process vastly more information than your team could manually review.

Customer service augmentation

Create AI tools that help your team find answers faster without replacing human judgment. "Show me all policies related to this customer's question." "Draft three possible responses to this situation." The human makes the final call, but with better information, faster.

What we're experimenting on

We've been actively working on ways to utilize AI across our platform to make sure our customers are at the forefront of this technology. Our development team has been quietly experimenting with a few applications that show promising early results. Here's a sneak peak:

Text-to-order

We're working on a tool that can convert photos of handwritten text or digital files into product lists. This significantly simplifies the order process for customers so they can take a photo to create an order or quote in minutes. It will also help counter staff process customer requests faster without manual retyping.

Smart order inbox

Ever wish those emailed orders would just process themselves? Now they can. We're experimenting with AI that monitors your dedicated order inbox, identifies senders, extracts order details, and creates the order in Dealer Admin ready for your ERP. The system will flag uncertain items for human review to maintain accuracy. This feature aims to reduce manual data entry and allow your team to focus more on customer relationships and complex problem-solving.

Voice-to-order

"Six 2×4×8s for the Wilson job, delivered on Thursday at 7am if possible."

We're in early testing of a system that could understand contractor-speak and convert voice messages into accurate draft quotes. No forms, no callbacks. Your customers can talk naturally and get a draft quote within minutes. Early results suggest we're onto something, but we're still training the AI to master the nuances of order language before any release.

Catalog enrichment

We're exploring ways to automatically expand basic product data with more complete descriptions and specifications. This could help maintain more consistent product information across your catalog without manual research for each item.

Estimator copilot

In very early stages, we're investigating whether AI could assist with reading construction drawings to help generate material lists. We see potential for this to support estimators by handling some of the repetitive elements of takeoffs.

Foundations first, AI second

You wouldn't start shingling a roof before the walls exist. Yet here we are, watching businesses chase AI while their data lives in filing cabinets and spreadsheets only Bob from accounting understands. That's building your digital strategy backward.

Getting started with AI isn't rocket science — but it does require data that doesn't suck. The good news? Even messy data can deliver value today. The better news? LBM dealers that clean up their digital act will leave the competition eating dust tomorrow.

Start digitizing and cleaning the basics: inventory, orders, product specs, customer service inquiries — all in systems that actually talk to each other. While your competitors are still manually entering orders, you'll be automating the tedious stuff through AI agents and focusing on what actually grows your business.

The AI revolution won't wait for perfect data, but it definitely rewards those who come prepared.

PULSE CHECK

What AI features would you like to see?

LUMBERYARD TOUR

Inside Healdsburg Lumber Company, a modern family-owned lumberyard with over 150 years of history

When your goal is serving both homeowners and contractors, every detail matters – from inventory organization to showroom experiences. Healdsburg Lumber's impressive facility demonstrates how traditional lumber dealers can evolve their physical spaces to meet changing customer expectations:

Their brand-new state-of-the-art showroom brings together doors, windows, cabinets, hardware, and plumbing fixtures in a space designed for collaboration. Builders can bring homeowners in to touch, feel, and visualize options, creating a true end-to-end home experience focused on finishings.

Watch the full video tour above to get an in-depth look at their facility and innovative approach to LBM retail.

FROM OUR PRODUCT TEAM

Save time with digital signatures

Our product team just rolled out eSignature. This lets you send documents for signature directly through your Dealer Admin – no more printing, scanning, or playing phone tag with customers trying to get signatures.

Need a quote approval or credit application signed? Just upload the document (or sync it straight from your ERP), add signature fields, and send. Your customer gets a secure link via text or email, and you get notified the moment they sign.

Book a personal demo with our product team for a walkthrough of this feature.

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