Handling the Chain
Generally , construction companies are automating three key business areas : 1 . Procurement 2 . Accounts receivable 3 . Inventory management To do so , they ’ re adopting the technological tools necessary to better communicate and coordinate with all parties along each project ’ s distinctive supply chain , from the project owner , to the designers , to the contractor and subs to the actual suppliers .
One such tool is supply chain management ( SCM ) software . Also known as logistics software , SCM solutions help manage how and when equipment , materials and services are procured . Although more prevalent in other industries , SCM software is making its way into construction , doing the hard work of tracking the many parts of a project ’ s supply chain and often providing a digital platform that all parties can use to view the same data .
Managing the Risk
For more in-depth supply chain monitoring , another tool to consider is supply chain risk management ( SCRM ) software . You can use SCRM solutions to ensure you ’ re working with vetted suppliers and subcontractors who have the proper insurance , training and qualifications . Typical features include :
Risk Management . Monitor suppliers and sites , configure risk scores , get critical failure points and track risk-mitigation progress .
Mapping . Visualize your supply chain using maps , assess potential vulnerabilities and prioritize supplier workflows .
Event Monitoring . Track events across the supply chain and create “ what if ” scenario modeling . Users can load sites and points of interest , and monitor local impacts via news outlets , social media and regulatory agencies .
Adding People
On the human side of things , some contractors are hiring supply chain managers with educational backgrounds and experience focused on the distinctive challenges of this area . Although investing in new employees and software is costly and should be done with great care , maintaining a strong supply chain is imperative in today ’ s business environment .
Doeren Mayhew ’ s dedicated Construction Group works closely with construction companies as they navigate through industry challenges . To obtain assistance with analyzing your business processes and exploring digital supply chain options , contact us today . ■
Contractor / Supplier Assessments . Create standardized assessments and customize question weights and thresholds based on relevance .
Issue 1 | 2022 VIEWpoint 5