Demand Products Customer Story | Nomad eCommerce
Customer Success Story
Demand Products
Established in 1983, Demand Products is a leading distributor in the EIFS, stucco, and wall system industry, with a customer base that mainly includes large corporations but also encompasses DIYers and weekend crafters. Distributing primarily through North American distributors who then supply contractors, and sometimes directly, they specialize in a range of stucco tools, including manual to automated foam cutters, fasteners, and application tools.
ERP
Acumatica
Industry
EIFS, Stucco, Wall Systems
Deliverables
eCommerce website fully integrated with Acumatica
Website
PAIN POINTS SOLVED
The Goal
Demand Products wanted to streamline the ordering process for their distributors, encouraging them to go to their website to search for products, place orders, make payments, etc. They wanted to make this move for three reasons.
- Provide quick, mobile-friendly, and seamless ordering experiences to support the evolving demographics in their industry.
- Remain competitive through innovation.
- Provide their sales team with more time to focus on outbound calls, building customer relationships, and exploring upselling opportunities.
"Staying ahead of technological trends rather than trailing behind is vital. Observing competitors update their websites underscored the necessity for us to innovate, ensuring we remain competitive and meet our customers' evolving needs."—Ginny Brajdic, President, Demand Products, Inc.
The Challenges
Demand Products began their modernization initiatives by migrating to Acumatica for their ERP. They then realized that there were significant limitations with their previous eCommerce website. Initially, they chose BigCommerce for its promised seamless integration with Acumatica, but faced slow progress, missed deadlines, and backend technical issues,
Significant issues arose around Demand Products’ need to:
- Integrate with 3rd party freight processing software, StarShip
- Offer shipping discounts
- Unify location-based pricing with Acumatica.
- Provide a simple solution for sales tax exemptions that is unified with Acumatica.
- Enhance the site’s search functionality to accommodate a unique product catalog.
- Allow multiple users the ability to log in under one Acumatica customer ID.
"It soon became clear that the initial implementation would be problematic, potentially costly and inefficient, and fall way short of our success criteria."— Vali Malkin, President/CEO, Opus Global Data Solutions, Acumatica partner
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Multiple Users Logging In Under One Acumatica Customer ID
Many of Demand Products’ distributors use a single email to consolidate all their confirmations and order-related communications. However, Big Commerce’s requirement for each user to have a unique, separate email address forced numerous workarounds, creating unnecessary complexity.
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Freight Integration with Starship
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Shipping Discounts
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Unified Location-Based Pricing
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Simplified Sales Tax Exemption Solution
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Enhanced search functions
Calculating shipping estimates before items are packaged presents challenges, since box dimensions and total weight are not yet determined, and handling charges vary by company. Demand Products (along with many other B2B distributors, wholesalers, and manufacturers) addresses this with StarShip, shipping processing software that integrates with Acumatic ERP to offer shipping estimates at the time of order, including all costs and fees. However, the lack of integration between BigCommerce and StarShip forced Demand Products into the less-than-ideal situation of having to manually determine shipping costs after the customer has checked out. This manual intervention not only introduced the risk of inaccurate shipping estimates but also significantly increased the likelihood that the customer would cancel their order. These inefficiencies necessitated a platform that could unify their eCommerce website, shipping software, and ERP, streamlining operations and allowing sales reps to focus on sales rather than resolving shipping estimate issues.
B2B businesses often incentivize purchases by offering shipping discounts based on the quantity bought. This strategy is designed to reduce shipping costs, which can sometimes constitute a large portion of the total order price. However, supporting shipping discounts, especially in conjunction with platforms like StarShip, presents challenges due to BigCommerce's lack of support for shipping discounts, and (as seen above) a lack of integration with StarShip. Due to this inability to support shipping discounts, Demand Products could not implement any shipping promotions, impacting restricting them in terms of pricing flexibility and hindering upsell opportunities.
It’s common for companies like Demand Products to operate multiple warehouses across the country to minimize long-distance freight charges. Different locations can lead to pricing variations due to costs associated with operating warehouses in different areas. This strategy also adds complexity due to the multiple shipping origins but keeps shipping costs as low as possible for customers. Acumatica ERP supports pricing by location, but BigCommerce lacks that ability, offering only a single price point for an item regardless of where it is stored or sold. This completely undercut Demand Products’ business model.
Navigating the complexities of sales tax across the United States is a significant challenge for many companies, given the existence of over 23,000 sales tax jurisdictions and the fact that many companies have a presence in multiple states, creating a 'nexus' that obligates them to collect sales tax in each of those states.
But for most B2B distributors, including Demand Products, the overwhelming majority of their transactions are tax-exempt since products are typically resold. They found traditional solutions (like Avalara) disproportionately costly for their needs and wanted to manage their large number of sales tax exemptions more efficiently. They wanted to implement a simpler, more straightforward solution that could directly pull data from their Acumatica ERP system to determine the tax status of a customer and the taxability of a product at checkout. This could not be done with BigCommerce.
Most of Demand Products’ customers are contractors who might inaccurately enter an item number (or not know it) or misspell product descriptions while searching for a product while standing on a job site. This often led to a lot of difficulty in locating the right product to order and a lot of friction (in general) during the online ordering process. BigCommerce could not address this capability without the use of third-party plugins.
The Solution
"In just one month, we accomplished more than what was achieved in eight months with the BigCommerce project. It's incredible because the BigCommerce project never even went live. So, to think, we got more done in four weeks than in those eight months is quite something."—Ginny Brajdic, President, Demand Products, Inc.
Nomad’s ability to communicate directly with Acumatica ERP was crucial in their decision to work with Nomad. For example:
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Nomad enhanced the site’s search functionality to accommodate Demand Product’s unique product catalog. Now the online ordering process is much more user friendly; it is more flexible in terms of item number entry and can autocorrect common misspellings and incorporate related search terms.
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Nomad’s flexible approach to shipping discounts allows them to be applied through either a promotional code or automatically based on predefined criteria. Because discounts applied to freight charges are contingent on specific variables managed within StarShip, it calculated the actual shipping costs, applying discounts directly through StarShip could be problematic without full integration. Nomad eCommerce offers full integration with StarShip. Nomad, also fully supports complex discounting scenarios, such as offering (for example) a 50% freight discount to customers in California on orders over a thousand dollars, a capability not available in BigCommerce.
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Nomad enhances the sales process by notifying customers when they are close to qualifying for a discount, encouraging additional purchases to reach discount thresholds. This feature is particularly valuable for upselling, enabling businesses to drive higher order values by informing customers of potential freight savings with additional purchases.
The Importance of Direct ERP Integration
The core issue for Demand Products was data management, especially the inconsistent synchronization between Acumatica and BigCommerce. This problem was persistent, leaving Demand Products without any way to access needed data promptly, transform it, and send it to where it was needed during the customer’s ordering processing.
Their experience underscores the significant advantage of using Nomad for B2B eCommerce: efficient data management and ERP synchronization. B2C eCommerce solutions that are retrofitted for B2B are usually dependent on 3rd party connectors resulting in a lack of direct access to essential data and resulting in frequent data inaccuracies and synchronization issues. These services, while functional for basic tasks, fall short when customization or access to specific, unique data sets is needed.
Nomad's direct integration with Acumatica ERP ensures a seamless and reliable data connection. This capability for swift data access and customization without third-party services offers a strong value proposition: immediate and precise data retrieval, enabling automated eCommerce sales processes that align with back-office operations.
This access not only streamlines operations but also significantly reduces the potential for errors and delays, setting Nomad apart as a more adaptable and efficient solution for B2B wholesalers, manufacturers, and distributors using Acumatica ERP.
About Nomad eCommerce
Located in O’Fallon, IL, Nomad eCommerce offers over 20 years of experience in delivering B2B eCommerce platforms, fully synchronized with the ERP. Our service is designed for manufacturers and distributors, providing a robust SaaS solution that connects the ERP to digital platforms efficiently. Nomad addresses complex pricing, product configuration, shipping, checkout, and freight needs, alongside offering intuitive B2B self-service features.
ERP systems fully supported include Acumatica, Syspro, Macola, Epicor, Infor Visual, Netsuite, and Microsoft Dynamics 365,