The supply chain ecosystem within construction is facing significant strain. While most severe impacts from the pandemic are easing, challenges like labour shortages and inflation continue to create ongoing pressure throughout supply chain networks. The latest setback is the anticipated 6% decline in construction output this year, as rising mortgage rates start to take their toll. These issues can lead to delays in the delivery of materials and resources, which, in turn, heavily impact a contractor’s finances if not managed effectively.
This is where technology could make all the difference. Implementing digital solutions can significantly streamline and optimise their supply chains. Whilst some of these challenges may appear limited to the job site, solving them starts with the estimating and procurement teams, which is where tech can play a main role.
From our conversations with estimators over the years, it is clear that the construction supply chain can become messy. It can often feel like a jigsaw puzzle. From gaining quotes to syncing service lines with the main contractor it is like trying to find that last puzzle piece that didn’t make the box. That’s where online tendering platforms come in—simplifying everything, and giving you one place to handle bids, quotes, and communications, making it smoother for everyone.
Here are some top tips for ensuring your supply chain operates smoothly:
Broaden your reach
As skilled labour continues to be scarce, main contractors must look beyond their usual network for new suppliers. Effective collaboration throughout the project is essential for these new partnerships to thrive. But how?
Digital tendering platforms, like E1, help mitigate construction delays and disruptions by streamlining project execution. These platforms enable contractors to broadly advertise opportunities and invite new subcontractors to submit quotes, reducing the need for extensive back-and-forth communication.
Keeping your network up-to-date is key to staying ahead. By broadening your list of suppliers, main contractors can enhance their resilience and avoid over-relying on just a few subbies. Additionally, expanding your network will boost your competitiveness. With a wider range of quotes, contractors can offer more competitive pricing, improving your chances of securing the project.
Automate, Centralise, and Collaborate
A centralised digital platform could significantly aid the industry in navigating changes and avoiding disruptions. However, Hackett’s Golden Thread Guidance reveals that over 90% of product manufacturers don’t view digitalisation as a major concern. Too often investments in digital technology are misguided due to a lack of understanding of its potential and implications. This view is likely widespread across our industry.
Effective tendering relies on building strong connections rather than getting bogged down by paperwork. Traditional methods of managing tenders can result in missed opportunities and outdated quotes.
Collaborative networks provided by digital platforms simplify document management, facilitate seamless teamwork, and enable real-time tracking of quotes. This allows estimators to focus on evaluating actual quotes rather than managing paperwork.
I should clarify that automation doesn’t mean replacing human effort with robots; it means speeding up processes by eliminating repetitive tasks, allowing for estimators to focus on building connections in the industry, as opposed to admin crunching. Automated addenda management reduces the risk of document errors, and digital audit trails offer a clear overview of document distribution, minimising disputes.
Looking Ahead
The ongoing challenges we see within the supply chain sector show it is time for the construction industry to get on board with automation and update how we handle tenders. Similar to other industries, such as law and healthcare, automation cuts out the admin hassle and lets contractors focus on the job at hand. When both subcontractors and main contractors see these benefits, it leads to more accurate quotes.
We’re not looking for a complete overhaul but rather a gradual move toward smoother, more efficient processes that strengthen relationships. Our goal is to keep the UK and Ireland competitive; and we believe the answer lies in improving teamwork and making project execution smoother by refining our essential supply chains, creating a better industry for everyone.
- Digital Supply Chain
- Risk & Resilience
