Merchants have been classified roughly into two groups. You will find these two groups defined as front office merchants and back office merchants. Front office merchants are industry participants we look to executive our construction projects.
Back office merchants represent what historical would have provided departmental functions commonly found within these front office organizations, but may now be effectively delivered as business outsourced turnkey services leveraging the unique efficiencies that only a cross-organizational marketplace platform can provide.
Front office merchants can conduct transactions and workflows with other front office merchants or conduct business and workflows with back office merchants.
Likewise, back office merchants will commonly conduct transactions and workflows with front office merchants, but transactions and workflows can also be conducted from one back office merchant with another back office merchant.
The BuilderChain model, and the internal "first-party" merchants we are creating on the platform, is following the same approach as ADP Payroll. ADP Payroll does not provide its customers with payroll software, they provide a turnkey service.
We believe BPO is particularly suited for residential construction where small to medium size companies are challenged with complex and expensive software implementations.
Likewise, never before have big employers tried so hard to hand over chunks of their business to contractors and quotes the former CEO of Virgin America, David Cush, who says:
“We will outsource every job that we can that is not customer-facing,”