The following is a recap of an insightful fireside chat featuring Brandon Lassiter, Vice President of Enterprise Data and Analytics at Ferguson, which took place at Stibo Systems Connect 2024. 

Ferguson is one of North America’s largest wholesale distributors of plumbing supplies, pipes, valves and fittings. The company is also a major distributor of HVAC equipment for heating and cooling, waterworks (water hydrants and meters), kitchen and bath, lighting, safety equipment, appliances and tools.  

It sources products from 35,000 vendors, managing a product catalog of over 6 million items (and growing). With a core business strategy focused on acquisitions, Ferguson faces a constant flow of new product data.  

Not surprisingly, efficient onboarding is critical. 

The previous onboarding situation was described as "bleeding," as the average onboarding time was approximately 39 days – an unacceptable timeframe in a fast-paced industry. So, the company set out to tackle this "big hairy beast" of a problem. 

"We sell everything from a 50-cent wax ring that goes underneath a toilet all the way up to a half-a-million dollar nuclear valve...,” said Brandon Lassiter, Vice President, Enterprise Data and Analytics at Ferguson. “It's really hard to be able to build a single data model that can facilitate all those different needs." 

A multi-pronged approach to smooth onboarding 

Ferguson didn't rely on technology alone to conquer its product onboarding challenge. The company took a holistic approach, recognizing the importance of people and processes alongside cutting-edge tools. 

Talent and process optimization 

First, Ferguson focused on its team. The company prioritized upskilling its 150-person product onboarding team, finding areas where individuals could enhance their skills and work more efficiently.  

The company also took a close look at its existing onboarding process, using stream mapping to pinpoint and eliminate any unnecessary steps that were slowing things down. 

Stibo Systems as the foundation 

With a skilled team and streamlined processes in place, the team turned its attention to technology. Ferguson carefully evaluated its existing Stibo Systems Platform, confirming it was the ideal solution for centralized product data management.  

The company also had to make absolutely sure the platform was configured for maximum efficiency to be able to support its ambitious goals. 

AI for automation 

Ferguson recognized the need to eliminate manual bottlenecks and speed up its onboarding process. Product categorization, a critical yet time-consuming task, was a perfect candidate for automation.  

Before, individuals manually assigned categories to each product, a process that was not only tedious but also prone to errors, especially given the vast and diverse nature of the company’s catalog.  

"The faster we can get a product sellable, the more likely we are to sell it," said Lassiter. 

A surprising audit revealed that even with human intervention, categorization accuracy averaged only 78%. 

To address this, the team used its existing product data to train a machine-learning algorithm. The results were impressive: the AI achieved 92% accuracy, significantly improving both the speed and accuracy of product categorization. 

Data profiling and matching 

AI played a key role beyond categorization, too. Before entering the onboarding process, all incoming product data undergoes data profiling, a pre-processing step that analyzes and standardizes the data to make sure it is consistent and compatible. 

Another critical step is product matching, where AI helps identify potential duplicates within the existing catalog. This prevents redundant entries and ensures data integrity, a crucial function for a company with a constantly growing catalog sourced from numerous vendors. 

Key takeaways: 

• Get leadership on board by showing early wins and communicating the value of your initiatives in clear, non-technical terms. 

• Technology is only one piece of the puzzle. Optimize your team and processes to total efficiency. 

• Machine learning can outperform manual processes, leading to higher data quality and faster onboarding. 

• You need a robust MDM platform, like Stibo Systems Platform, for managing complex product data and enabling AI initiatives.    

Looking beyond onboarding toward immersive experiences 

Ferguson isn't stopping at faster onboarding. The company is looking ahead, seeing a future where its rich product data supports immersive customer experiences. It is exploring augmented reality, 3D modeling and building information modeling – tools that can give customers interactive and informative product visualizations. 

Lassiter explained, "Imagine walking into one of our showrooms. You tell us what you like – the colors, the patterns, the style – and we can build an entire kitchen right there in front of you, through a digital experience. We might not even need physical products on the showroom floor anymore." 

This vision goes beyond the showroom, too.  

In the construction industry, where productivity is key, Ferguson sees great potential for data to empower its customers. Imagine a construction crew using augmented reality goggles to visualize all the details of a building's sprinkler system, all thanks to accurate and accessible data – provided by Ferguson. 

This focus on customer experience is a huge shift, from simply fixing a problem to actively creating new opportunities. By making the onboarding process smoother – and investing in AI – the company frees up resources to focus on these great, innovative initiatives.