Engagement: the missing link in Supply Chain Management?

Alongside exciting opportunities, the construction industry faces many challenges. Expectations in terms of quality and delivery time are increasing. At the same time budgets are expected to stretch further.

Balancing improvements with efficiencies isn’t easy. And it’s not something contractors can achieve on their own.

Projects rely on their supply chain for delivery.  The relationships that main contractors have with their supply chain can either help or hinder the drive towards improved outcomes and greater efficiency.

Supply Chain Management is about managing the relationship between ourselves and our supply chain members.

‘We’ll call you in when we need you, and give us your best price,’ isn’t the way forward. Collaboration means we each respect each other’s expertise and our respected business objectives.

We know that when we bring subcontractors in earlier in the project we get better outcomes and we can plan work more accurately. The earlier they are engaged, the more able they are to plan their own resources. We can then all work efficiently and maximise our collective capacity.

Historically, it could be said that contractors have played their cards too close to their chests. Perhaps we haven’t wanted suppliers to feel too comfortable and maybe we’ve been nervous about sharing details of the opportunities we are pursuing. This approach is a dead end.

From Bids to Post PC

When supply chain partners work closely with our bid teams, we can present the most robust technical solutions possible to our customers. Their expertise improves the bids and there is greater reassurance of delivery quality from suppliers that know us and who we know.

And right through to post pc engaged suppliers play a more active role in collecting Health and Safety, technical and maintenance information in a consistent format when we are working to commonly agreed standards with shared data.

Underpinning all of this, there has to be recognition by the main contractor that whilst the supply chain carries a degree of responsibility for the outcomes, the main contractor is ultimately accountable for these outcomes.

Encouraging the supply chain to meet their responsibilities, through performance incentives rather than non performance penalties, should be the core theme of any supply chain relationship. Ultimately there has to be a recognition that projects are not delivered by contractors working in isolation. They are delivered by teams, the majority of which should consist of engaged and motivated suppliers.