Do you want to take control of your construction procurement process this year? It would be a great time to do so. Some reports indicate that 2024 may be a tough year for the construction industry, and contractors will need to take steps to ensure they’re working efficiently to weather any storms that may arrive.
Without the right materials in the right place at the right time, construction projects can quickly grind to a halt. By reviewing your procurement process, you can discover any areas for improvement, and action them before they have time to negatively impact the construction cycle.
Evaluate your suppliers
Do you use the same suppliers over and over again? Do you fall back on pre-agreed rates that were set many years ago? There is a risk when opting for the convenience of familiar suppliers that you will not be getting the best deal possible. It’s not just the cost of the materials that needs to be considered, there may also be new suppliers that are closer to your site or can deliver more quickly.
Taking the time to assess which suppliers you use most often, what agreements you have in place with them, and whether there might be room for negotiation, is an important step when taking control of your materials procurement.
Expand your supply chain
Expanding the list of suppliers you use increases your chances of receiving competitive pricing, ensures you have suppliers that are close to your construction sites, and leaves you with alternatives to fall back on should the need arise.
Whilst evaluating your suppliers, it’s good practice to research new suppliers you can add to your supply chain. Look for suppliers who can provide the materials you need the most often, or look for suppliers who can fill any gaps you may have in site coverage.
Centralise your procurement process
Procurement teams shouldn’t work in silos and each member of the team should have a good awareness of the projects their colleagues are working on. Creating standardised processes and developing systems that create transparency will mitigate issues like under or over ordering, makes it easier to train new staff, and greatly increases efficiency.
Examine the environmental impact of your materials procurement
Sustainability is an issue that only continues to grow in importance. The types of materials you buy and how far these materials need to travel to get to site have a significant impact on the environment.
Evaluating your existing suppliers and expanding your supply chain will help you find local suppliers that are closer to site so you can reduce the emissions associated with transporting your materials to site. Alongside this, it would be good practice to research the materials you currently use and what sustainable alternatives might be available.
Adopt a digital procurement solution
Implementing a digital procurement solution within your organisation can assist with supplier evaluation, supply chain expansion, a centralised procurement process, and sustainability.
Many materials procurement processes are manual, which leaves them open to error. Adopting digital can reduce errors and improve accuracy to greatly transform the procurement process.
Digital solutions can eliminate the need for paper-based records, which saves storage space and makes it easier to find specific information. They can also make the procurement process much faster, and easily identify opportunities to make cost savings.
Improve your materials procurement processes
By following the steps above, you can easily take control of your materials procurement this year and reap benefits like time saved, money saved, and improved sustainability. By improving your materials procurement, you can contribute to the overall success of your construction projects.
Take control of your materials procurement with The Build Chain
The Build Chain is an online procurement platform that transforms the process of buying materials. Designed specifically for contractors, the solution makes it easy to locate new suppliers and benchmark pricing.
To find out how it works, book a demo!
