Drilling down on efficiency: Automation in construction credit 

Automation has significantly reshaped credit practices by streamlining processes, reducing manual errors and enhancing productivity. In the construction credit space, where efficiency, accuracy and timely decision-making are critical, automation has served as a powerful tool. 

Why it matters: Whether you work for a small company or a large enterprise, leveraging automation can enhance productivity and minimize risk in construction projects. 

Although both small and large companies turn to automation for efficiency, their challenges differ. Small businesses face resource and scaling limits, whereas larger ones deal with complexity, coordination and securing stakeholder buy-in. Success requires aligning tools, teams and strategy with both current and future needs. 

One common pitfall when automating processes is tunnel vision. For example, you might focus only on automating key areas like cash applications, customer portals or collections—overlooking additional opportunities that could provide long-term value. Failing to incorporate those from the start often means revisiting them later at a higher cost. 

Before diving into automation, it’s essential to understand your business processes thoroughly. “Understand the root of the problem before implementing solutions,” Zachary Zimmerman, CBF, CICP, regional credit manager at US LBM Holdings, LLC (Buffalo Grove, IL) said during a Credit Congress session, Automation in Construction Credit.  

Selecting the right automation 

When selecting an automation partner, it’s important to evaluate their full range of capabilities—not just the specific features you initially set out to find. Often, the greatest value comes from solutions you didn’t originally consider. 

With a wide range of automation software available, it’s important to narrow down your options. Begin by discussing your challenges and expectations with multiple vendors. Learn what their software can do and identify the features you truly need. This approach will help create a more balanced and productive partnership. 

It’s essential to take a long-term view. Don’t just think about what you need today or even next year—consider where the organization will be in five or ten years and build for scalability. Even if you’re not around to manage the future state, someone else will need to pick up where you left off. Make sure what you build is sustainable. 

Getting buy-in  

To get the buy-in from upper management, share how this type of automation will benefit not just your team, but other departments in your company. Present measurable improvements with data-driven outcomes to help build credibility and pave the way for larger automation initiatives. 

Consult with your information technology (IT) team early in the process. Understand what level of support they can realistically provide. If they’re stretched thin, you’ll either face delays or need to invest additional resources to stay on track. Automation is typically pursued to improve efficiency—especially when manual processes are consuming too much time—but a poorly planned implementation can end up creating more friction than it resolves. 

While directors and executives often guide strategy, the insights from those in the trenches can make or break the success of your automation efforts. Engage those doing the daily work before designing automation solutions. “Get their opinion on the automation tool and ask them what they would have changed going forward,” said Carl Davidson, director credit and collections at Blue Water Industries LLC (Jacksonville, FL). 

Connecting with others who do what you do and who face similar challenges will go a long way towards helping you find solutions. “Join a group in your industry or a related field and talk to people dealing with the same problems you’re dealing with to help you decide,” Davidson said. “You can also join an NACM Thought Leaders Forum to gain valuable industry insights and solutions from credit professionals.” 

The bottom line: Regardless of your company’s size, choosing the right automation solution and ensuring its proper implementation is essential to your company’s success and the effective management of risk.