With demands for sustainability, efficiency and cost savings on the rise, construction materials purchasing methods are evolving
The success of any construction project hinges on having the right materials in place at the right time and construction materials procurement will need to overcome the challenges it is currently facing, integrate new technologies, and adopt effective supplier management to ensure the continued success of the industry.
Although many contractors are already adopting digital solutions to address these issues, this adoption must be accelerated to futureproof the construction industry and ensure the smooth delivery of projects.
Current challenges in construction materials procurement
Ongoing industry challenges include delays, cost overruns, and inefficiencies. Lack of transparency within the supply chain, alongside manual processes, are negatively impacting project timelines and causing costs to escalate. These challenges highlight how important innovation in materials procurement is.
Technology will transform materials procurement
Integrating new technologies into the materials procurement process will tackle many of the challenges facing the construction industry. Digital has the power to enable seamless collaboration, real-time data insights, and improved efficiency across the supply chain.
Technology integration will replace traditional, paper-based, manual, and time-consuming processes with centralised procurement dashboards, greater visibility of procurement activity, cost savings, and enhanced reporting capabilities.
At The Build Chain, we’ve created a digital procurement solution for UK-based SME contractors and housebuilders that is quick and easy to implement. It’s designed to move procurement professionals away from traditional methods of sourcing materials to improve efficiency and better prepare construction businesses for the future.
Digital will support an increase in sustainable procurement practices
There is increasing pressure on construction companies to demonstrate what they are doing to reduce their impact on the environment and legislation surrounding reductions in carbon emissions is likely to be introduced in the coming years.
Therefore, construction materials procurement has an opportunity to adapt and play a key part in the sustainable transformation of the industry. There are two main areas where changes will occur: the nature of the materials themselves and the distance that materials have to travel to get to site.
Going forwards, construction companies will need to make more effort to choose suppliers local to their sites to reduce the carbon emissions associated with getting materials to site.
Sustainable products will also grow in popularity. This includes things like recycled or reclaimed materials, renewable materials, and high-performance insulation.
Again, digital solutions will make a significant difference in this area. At The Build Chain, we use mapping technology to connect contractors with suppliers local to their sites so their materials do not have to travel as far.
We’ve also built a platform where manufacturers can showcase the work they are doing to improve the sustainability of their products, as well as display any certifications they may have in this area, such as EPD ratings.
Using digital for supplier relationship management and resilient supply chains
Effective supplier relationship management is a critical component of materials procurement. Contractors that invest in robust supplier relationship management strategies will reap benefits such as timely deliveries, access to quality materials, and more security in challenging economic landscapes.
Transparent communication and shared goals will contribute to a more reliable supply chain, ensuring the smooth running of construction projects.
We’re already seeing a shift towards local sourcing, diversified suppliers, and contingency planning to mitigate risks and ensure continuity in the face of unforeseen disruptions.
By adopting digital procurement solutions, contractors can accelerate their efforts to improve supplier relationship management and build resilient supply chains. Solutions like The Build Chain can be used to quickly and easily find new suppliers to remove the reliance on a small number of existing suppliers, and with features like an in-platform live chat, it’s possible to build those important relationships between buyer and supplier.
Looking ahead to a digital future
The future of construction materials procurement will see contractors embracing new technologies, building strong supplier relationships, and prioritising sustainability. Efficiency, transparency, and collaboration will all improve. Organisations that embrace digital will be better positioned to thrive in an ever-evolving construction industry.
At The Build Chain, we are proud to be playing a part in helping the construction industry shift towards digital ways of working to improve the industry’s resilience and help it meet current and future challenges.
