Strengthen Supply Chain Management in a Volatile Market

by | Apr 15, 2020

While many parts of the supply chain are uncertain, construction professionals can only change the parts that are in their control. Zero in on three key areas: estimating jobs and materials needed, monitoring project progress and communicating with the team.

Supply chains should be, for the most part, predictable; yet, in any industry they can still be full of surprises. That statement couldn’t be more pronounced than right now in the face of massive disruptions to global supply chains, with diversification away from suppliers in China. While so many things remain out of a person’s control, construction professionals have to focus on what they can change.

Too often, professionals are reacting to problems instead of preventing them. Prevention starts with identifying weak links in the current supply chain, so they can be strengthened for more efficient management moving forward.

What Slows Down Supply?

The building and construction industry is dynamic, relying on international and local resources being traded in highly volatile markets. As a result, supply chain management is often more challenging in the construction industry than it is in others. From tracking material deliveries to staffing crews across multiple jobsites, even minding interruptions from city inspection timelines and permits.

What Can Construction Professionals Control?

As a result of many competing complexities, supply chains can break down. Construction professionals should focus on preventing problems that are within their control.

Construction professionals can’t control what happens at the global supply chain and market level, nor can they control unforeseen staff, weather or other unknown interruptions; however, they can control a few things to keep jobs running smoothly. Staff communication is a key in supply chains, everyone needs to be in the know when bumps in the road arise and a part can’t be delivered on time, or arrives onsite broken and the team can’t work according to schedule.

Leaders can prioritize communication by putting checks and balances in at different stages in projects and/or supply chains. Even a simple checklist at point A and point B of a project can go a long way. Doing takeoffs slowly and triple checking them for accuracy helps from the get-go, and so does working with trusted suppliers along the way. There are also different technology solutions available for almost everything construction professionals can control.

Control Supply Chains Using Tech

From takeoffs to monitoring and team communication, there are flexible and collaborative technology platforms for construction professionals that can help with less stressful supply chain management. Platforms such as ProCore, Buildertrends and Plangrid can help teams effectively collaborate in real-time, keep centralized records, streamlined material lists, RFIs, submittals and more. When teams are organized and efficient, they can operate with fewer crew members.

E-Commerce technology plus delivery services customized to the building industry are helping too by providing the just-in-time arrival of materials and reducing the amount of labor needed onsite. When suppliers can meet their client’s needs as they need them, supply chains can be completely reimagined.

Strengthening Supply Chains

For projects to run easier and more efficiently, everyone has to do their part. Manufacturers, distributors, material handlers, retailers, even drivers and the crew on site. If any part of the chain breaks down, quality suffers, inefficiencies happen, repairs have to be made, returns have to be processed and so on.

While many parts of the supply chain are uncertain, construction professionals can only change the parts that are in their control. Zero in on three key areas: accurately estimating jobs and materials needed, proper monitoring of project progress and non-stop team communication. Contractors should use technology to streamline everything they do. And remember, supply is only as strong as the links in its chain, so for every step of the project, make sure to work with trusted material providers and staff.

Author

  • Eamonn O’Rourke

    Eamonn O’Rourke is a seasoned builder and serial entrepreneur with more than 20 years of construction industry experience under his tool belt. He has built houses in Europe and North America managing $45M+ in construction projects. With a world-class team under his leadership, Eamonn’s new focus is building technology to reshape the industry he came from.

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