The Build Chain investigates how digitising the construction materials procurement process can benefit your business
A key aspect of the construction cycle, materials procurement, is typically a very manual process. Construction is a relationship-based industry. Business is done based on collaboration, trust, and effective communication between the various stakeholders involved within a project.
It involves buyers and procurement managers taking the time to build relationships with their materials suppliers. When new suppliers are required, the search can be time consuming, involving plenty of Google searches, emails, and phone calls.
Due to the strong relationships that develop between buyers and suppliers and the time and effort involved in finding alternatives, many contractors simply use the same suppliers over and over again, falling back on pre-agreed rates and pricing.
However, in challenging economic climates, construction businesses are finding they need to adapt and adopt new ways of working to stay afloat. Utilising modern technology and digital solutions is one way to do this.
The digital landscape of construction materials procurement
Digital transformation in the UK construction industry is continuing to gain traction. Companies are adopting various digital tools and technologies to streamline the procurement process, enhance efficiency, reduce costs, and improve overall project outcomes.
Online marketplaces dedicated to building materials are very popular because they can allow for easy browsing, comparison, and purchasing of various materials, often providing competitive pricing and bulk discounts.
There are also digital solutions for supplier relationship management which can improve communication, tracking of orders, and performance evaluation of suppliers. This can help contractors make informed decisions when choosing materials suppliers.
Building Information Modelling (BIM) is transforming materials procurement too because BIM models allow contractors to extract accurate quantities and specifications, facilitating precise material orders.
Other modern technologies making a difference to construction materials procurement include data analytics, Artificial Intelligence (AI), mobile apps, and blockchain for transparency.
Using digital to expand and diversify materials supply chains
Digital procurement solutions have many benefits. They can help buying teams save time, save money, and adopt a more sustainable approach to materials procurement. By removing some of the repetitive, manual elements of purchasing materials, contractors can quickly and easily diversify their supply chains, get better deals, and protect themselves from challenges that may arise in the future.
With issues like price inflation and poor product availability continuing to affect the construction industry, a wide and diverse supply chain is essential. It can help build resilience and mitigates risk by reducing dependency on a select number of suppliers.
Digital won’t replace construction industry professionals
Digital solutions need not remove the human element from the construction materials procurement process. Technology can be used to remove the inefficient, time-consuming aspects of procurement, which leaves procurement professionals with more time to focus on the more important parts of their job which digital can’t replace, such as building relationships.
Procurement platforms can also contain features design to enhance the ability to build relationships with suppliers, such as in-built live chat and the ability to easily share contact details and hold conversations on a basis that works for all parties.
As technology continues to grow and evolve, contractors who embrace this and use new solutions to adapt to changing economic landscapes will be the ones who succeed.
A number of companies are already reaping the benefits of digital, implementing solutions that allow them to expand and diversify their supply chains for improved project delivery.
