The digital transformation of the merchant sector has been gathering pace, and this is set to go up another level in 2026, as merchants evolve and adapt to the needs of customers and suppliers, and pre-empt legislative changes.

In the Q4 report, we commented on the launch of Data Yard – a centralised platform created by the BMF and NMBS to share product data seamlessly across the industry. Thirty more suppliers have completed the onboarding process since then. There were also further partnership announcements as two more ERP providers committed to collaboration and compatibility for the benefit of the whole supply chain.

For a sector which has been rooted in traditional tried-and-tested ways of operating, Data Yard demonstrates the enormous capacity merchants, and their suppliers and partners have to embrace digitalisation. We expect to see more of this as the adoption of Artificial Intelligence (AI) and advanced digital solutions accelerates.

There is a lot of hype around AI, and rightly so, as it is reshaping the technology landscape across many different industries and applications. But it shouldn’t be used for the sake of it. AI is most effective when it provides practical help and actionable insights for day-to-day operations.

ECI Software’s industry-specific AI-powered solutions – recently recognised with a Frost & Sullivan award – embed autonomous and assisted intelligence into workflows and offer capabilities with clear purpose. These are not solutions in search of a problem. The breadth of products reflects the possibilities AI presents across the many aspects of the building supply chain from AI-generated bills of materials and the automated assessing and prioritising of warranty requests, to improving service levels through AI-powered service calls and AI-driven sentiment tagging to understand what your customers value.

AI-optimised insights for e-commerce also provide a valuable tool for merchants to spot purchasing trends, highlight top buyers and optimise content to improve visibility, engagement and conversion rates. The result is a clear impact on the bottom line, with increased sales, customer satisfaction and retention.

When implemented with clear purpose and a problem-solving mindset, AI and digital tools are practical solutions that merchants and their supply chain can utilise to work smarter – not harder – to stay competitive and profitable at a time when margins are under increasing pressure.