We tend to think that we know our own supply chain intimately, but have you ever stopped to think about the true underlying value that your supply chain brings to your business and you to theirs? How do you select your supply chain partners on your construction projects? Is there a defined strategy? Do you go by best performance; price; experience; or a combination? Do you collaborate with them throughout the project lifecycle?Do you know the ones that support you through the bidding process and those that ultimately get the work?
Over the last few years I have come across Main Contractors wanting to work more closely with their supply chain. They know that they should be more inclusive, more visible, more transparent. So what is holding them back? Perhaps its current processes and systems, perhaps the desire to change is not strong enough! But in this growing climate of collaboration and inclusivity, change you must.
Your supply chain is one of the most important assets you possess.
A fully collaborative and supportive supply chain will boost your relationship with your clients providing opportunities for repeatable work. They are loyal and want to work with you and provide consistent levels of work and performance. They provide security and minimise risk to you, your client and themselves.
Your Supply Chain is the bedrock for all your procurement activities, from pre-construction activities such as expressions of interest, pricing/quoting, through the tender process and contract phases where requisitions and orders are raised, goods/services delivered and completed, GRN’s and Invoices created and payments made. Then on to post contract processes for snagging and issue management, handover and FM. Your supply chain need to be with you on the complete journey.
A disconnected supply chain however, is un-manageable, confrontational, unsupportive, disloyal, time consuming and a risk to your business and your ongoing relationship with your clients. How much time is wasted by both sides in chasing information, invoices, payments etc.. It all leaves a bitter taste in your mouth and an air of miss-trust. Something that neither party wants!
Take action now!
Work more collaboratively with your supply chain partners. A lot of the information and processes currently exist within your business albeit in a disconnected, siloed way. Provide your supply chain partners with tools and information that will help their business, and ultimately your own. Connect them into your business in such a way that they can see new opportunities and respond to them quickly and easily; Respond to price enquiries and tenders seamlessly; give them visibility of project information; quick tools for applications for payments and responses; use digital means for transferring data such as orders, grn’s, apps & certs, electronic invoicing and matching.
In doing so you will have a more engaged and visible supply chain ready and wanting to work with your business.
Take no action and you might find your supply chain unwilling to work with you and will happily walk away to join another more inclusive family.
About the Author: Construction specialist with 30 years experience in providing P2P & Supply Chain solutions within this often complex industry. CIPS Affiliated, I work with businesses on realising the value/savings to be made by implementing an appropriate P2P and Supply Chain strategy. A Trusted Advisor in all things P2P & Supply Chain.