Data driven construction procurement offers a wide range of benefits that can significantly enhance the efficiency and effectiveness of procurement processes and contribute to successful project outcomes.
From cost control to efficiency gains, sustainability to transparency, purchasing teams who embrace data can contribute to the overall success of construction projects.
Cost Control
Access to cost data and analysis enables precise budgeting and cost control. By understanding historical cost trends and variations, procurement professionals can negotiate better prices and minimise cost overruns.
Some procurement platforms, such as The Build Chain, allow buyers to compare quotes for materials in a single dashboard. This enhanced visibility of pricing across multiple suppliers can help to ensure contractors and housebuilders are receiving the best prices.
In what is currently a challenging landscape for the construction industry, cost control has never been more important.
Efficiency Gains
Data driven procurement can streamline processes, reducing manual tasks and paperwork. Automation can expedite tasks like order processing, vendor selection, and contract management, saving time and resources.
Procurement teams often find themselves stretched to the limit and find themselves with little time to focus on the most important parts of their jobs such as building relationships with suppliers, making it essential to look for solutions that improve efficiency.
Sustainability and Environmental Impact
Procurement data can provide insights into the environmental impact of construction materials and processes. This information helps in making sustainable and eco-friendly choices in procurement, aligning with environmental goals.
The need to demonstrate that steps are being taken to minimise the impact construction is having on the environment is only becoming more important. Taking steps to collect data such as distance of materials procured from the site they were delivered to is essential for reporting purposes.
Informed Decision Making
Data driven procurement provides valuable insights for informed and strategic decision-making. Procurement professionals can analyse historical data, market trends, and vendor performance to make more accurate and effective choices.
For example, collecting and analysing information related to the suppliers you use most often, the pricing you receive from these suppliers, and how quickly suppliers respond to your enquiries can help you negotiate with suppliers and accurately benchmark the pricing and service you receive.
Transparency and Accountability
Data driven procurement promotes transparency in vendor selection, contract management, and project reporting. This transparency enhances accountability and trust among all stakeholders.
Digital systems are typically much more efficient at collecting and storing data for analysis, which greatly enhances accuracy and improves transparency.
Strategic Procurement
Procurement data can guide the development of procurement strategies based on market trends, project goals, and financial constraints. This ensures that procurement aligns with broader project objectives.
Performance Metrics
Data driven metrics and key performance indicators (KPIs) can assess the performance of vendors, project progress, and the overall efficiency of the procurement process.
Continuous Improvement
By analysing procurement data, organisations can identify areas for improvement and implement changes to enhance future procurement processes and project outcomes.
Supplier Performance Improvement
Procurement data can highlight vendor strengths and weaknesses. By tracking supplier performance, procurement professionals can work with vendors to address issues, improve quality, and ensure reliability.
Risk Mitigation
Data analysis can identify potential risks in the procurement process, such as supply chain disruptions or regulatory changes. This allows for proactive risk mitigation strategies to be implemented.
Quality Assurance
By monitoring and analysing quality control data, procurement professionals can ensure that construction projects meet the desired quality standards and specifications.
Timely Decision Making
Real-time data and analytics enable faster decision making, especially in situations that require rapid responses, such as supply chain disruptions or change orders.
How do you implement data driven construction procurement?
The best way to begin experiencing the benefits of data driven construction procurement is to implement an appropriate digital procurement solution.
We created The Build Chain in response to ongoing issues within the construction industry, such as product availability, price inflation, inefficiency and sustainability.
Our platform can help contractors and housebuilders with cost control, efficiency gains, sustainability, transparency and data driven reports.
How it works is simple: users submit an enquiry form for the materials they need, which is then instantly matched with suitable local suppliers. Quotes from suppliers are compared in one dashboard, before buying direct from the supplier.
The digital nature of the solution means all activity is tracked, leading to greater transparency and more accurate reporting on all materials procurement activity.
Want to learn more?
Data driven construction procurement empowers professionals with the insights needed to make better decisions, optimise costs, manage risks, and improve overall project efficiency and quality. It’s a key component in achieving successful project outcomes.
Learn more: How To Leverage Data in Construction Materials Procurement
