BlueLinx Holdings Inc., a leading U.S. distributor of building products with annual sales exceeding $4.5 billion, is advancing its digital transformation strategy to enhance its ecommerce capabilities and streamline operations. The company’s efforts are focused on modernizing its technology infrastructure to improve both internal efficiencies and customer experience. These initiatives include the implementation of a new master data management platform, the piloting of an ecommerce platform, and the development of a transportation management system all of which are expected to be completed by the third quarter of 2025.

“BlueLinx is focused on becoming the most technologically advanced two-step distributor in the U.S.,” said Dwight Gibson, CEO of BlueLinx, during the company’s Q1 earnings call. “Our investment in digital transformation is not just about enhancing our technology—it’s about giving our customers the best possible experience and driving long-term growth for the business.”

These digital initiatives are central to the company’s broader goal of improving operational efficiency and supporting its growth strategy. BlueLinx’s new master data management platform is designed to streamline internal processes, while the company’s ecommerce platform, currently in its pilot phase, is set to provide customers with a more convenient way to purchase building products online.

“We are excited about the progress we’ve made with our ecommerce platform, which will provide our customers with a more convenient way to purchase building products online,” Gibson said. “We’re hearing from our early users that this will be a game-changer in how we serve the market.” The full-scale launch of the platform is expected later in 2025, following the integration of feedback from the pilot phase to better align the platform with customer needs.

In addition to enhancing its ecommerce presence, BlueLinx is also investing in a transportation management system to improve supply chain operations. “This system will allow us to drive greater efficiencies across our operations, reduce costs, and improve delivery times for our customers,” said Brian K. Langenstein, chief financial officer. “The investment in this system is expected to provide significant long-term benefits as we scale our digital infrastructure.”

BlueLinx is also expanding its geographic footprint with a greenfield expansion strategy. The company opened its first greenfield location in Portland, Oregon, late last year and plans to open additional locations throughout 2025. These new facilities will be equipped with innovative digital technology to streamline operations and provide better service to customers. “We’re moving towards a 70-30 specialty-structural product mix at these locations, which will eventually shift to an 80-20 split,” Gibson said.

The company’s digital investments are key to supporting the growth of its specialty product segment in these new locations. In the first quarter of 2025, BlueLinx invested $6.4 million in property and equipment, much of which was directed toward its digital transformation initiatives. Additionally, the company entered new finance leases totaling $28 million, primarily for fleet enhancements. “We remain committed to our transformation efforts, and the $6.4 million investment in our facilities is just one example of how we’re preparing for long-term growth,” said Langenstein.

BlueLinx also repurchased approximately $15 million of its common stock as part of its $100 million share repurchase program, reflecting confidence in its long-term growth prospects.

Analysts have responded positively to BlueLinx’s strategic initiatives. “BlueLinx’s investment in digital initiatives and expansion plans position the company to gain market share and enhance customer satisfaction,” said Holly Helstrom, an analyst at Capital Markets Research Group. “The strategic growth initiatives, including e-commerce and greenfield expansions, will allow BlueLinx to stay competitive in a rapidly changing industry.”

Todd Kelly, an analyst from Growth Tech Advisors, added, “Their focus on specialty products, along with the rollout of their digital tools, will drive greater efficiency, and likely increase customer loyalty as the company modernizes its operations.”

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