A fast internet connection and a range of speedy communication options have changed the face of entire industries. Engineering, transport, and agriculture are sectors that come to mind. By shortening their supply lines, innovative companies in these arenas have pushed down buying costs by removing traditional middlemen from the equation.
In contrast, construction has been one of the slowest to jump aboard the digital bandwagon. While that trend seems to be reversing of late, it doesn’t explain why developers and general contractors have been so backward in coming forward. It’s been somewhat puzzling because, of all the things happening in the world, building projects reflect:
- More competitiveness than ever
- Substantially shorter timelines
- Connection to better educated tenants demanding to see a range of contemporary material finishes and options.
- A tendency to stay with the old ways of doing things, thus enabling many in the construction process to:
- Take advantage of the numerous moving parts and complicated communication lines.
- Put their hands out for a piece of the action at every opportunity, as materials move through the supply line.
The real culprit in construction? Complacency.
Rainmakers in the supply chain have had it all their way for decades, until now. Developers and general contractors that refuse to change their methods face the following drawbacks:
- Unreasonably long waits for materials to arrive
- Frustrating runarounds in dealing with others in a bloated pipeline.
- Endless excuses from manufacturers, which they have no real pull with, regarding slow deliveries
- Going from one showroom to the next in search of materials – a tedious task that becomes a blur after a day or two.
- Staying confined to a pretty dull, “same old, same old” product range.
- Watching the costs of materials steadily go up every time another distributor or agent enters the mix.
- Routinely overshooting budgets on the wrong side of the cash flow line.
- Taking shortcuts to offset losses, and worse, sacrificing quality with make-shift substitutions.
- Dealing with impatient suppliers that:
- Have little time to listen and assist one’s needs.
- Are unwilling to identify the right product for the right job.
- Are short on new product and technology education.
Do you think this is far-fetched? Think again!
Here’s a real case study showing how a complicated supply line can get out of control faster than you can blink. Recently, we showed a national apartment builder (for years relying on the traditional supply chain), that:
- Getting materials for his average multifamily project delivered to his site took around 14 months from the time they were specified.
- The manufacturers’ prices were blown up by three times on the date of delivery.
- By favoring a one-stop supplier from out-of-state, he could avoid sales tax on his 500,000 square feet of vinyl flooring and other materials.
- On top of this, he double benefited because the material arrived at hugely discounted prices (manufacturers direct) compared to local sources.
And that was only the start. The developer was amazed at what a little homework can do in getting the company’s purchasing department simplified. He now incentivizes his buying staff to bypass all parties that add to the price without adding value. Moreover, he ranks “finding strategic suppliers that shorten the supply line” as his biggest priority.
The optimal solution for developers and general contractors.
The challenge lies in finding strategic supply partners that can give you access to a broad product range from reliable manufacturers at prices that can knock your socks off. They’re not growing on trees, but they are there if you do your research. Removing the stress of project inefficiency and replacing it with productive thinking is easier said than done. As a start, let’s get the goals upfront and real for constructive solutions to emerge. Your direct supply partners must demonstrate:
- Strong associations with recognized manufacturers, offering a full spectrum of options to meet any budget.
- An ability to disrupt pricing accepted as the norm for the materials and installation.
- A significant advantage over the big-box retailers with their uninspiring narrow product range.
- A vertical supply model providing materials from building to finishing and everything in between.
- A reputable one-stop service that covers material selection, installation, and flawless customer experience at a price that spells value for money.
Here are all the Green Lights to look for
Satisfy yourself that the supplier is more concerned about you and your needs than it is about its products and services. The latter must tie in with you, not the other way round. When you meet with their reps, ask them the following questions. Does the prospective all-in-one supplier:
- Show interest in what you like and where you’re coming from stylistically? In other words, does it focus on your design vision and preferences?
- Stay within the framework laid down by your architect and designer, and not go off at a tangent?
- Discuss and show options until it connects to your thinking?
- Show you broad pricing options, relating these to relative budgeting benefits?
- Have a vast manufacturing resource pool under one roof at its disposal, and not keep you circling back to the same two or three staple providers?
- Install the materials as a licensed contractor at competitive prices?
- Show the ability to give you a consolidated offer that puts all viable building material and finishes options in the right perspective?
- Guarantee you on-time deliveries?
- Answer all your questions about order status and regulatory compliance?
- Shorten the supply line dramatically from a broken process with multiple supply twists and turns into an easy “1-2-3 method” that right away saves time, money, and aggravation.
Global Construction Source – a supplier that checks all the boxes
Look no further than GCSource as the first in line as a strategic partner if you are in the multi-family, senior living, and hotel development space.
- They routinely work with customers’ designers and architects every day.
- Moreover, architects (directly) are amongst their most important clients. That, in itself, speaks louder than 1000 words.
- They supply necessary materials at factory-direct prices (discounted by up to 58%) and install as an all-inclusive service. These include:
- HVAC and Lighting equipment
- Flooring materials
- Windows and doors
- Building Glass
- Wall tiles
- Plumbing supplies including faucets
- Cabinets and countertops
- Bath fittings
- Stair treads & risers
- Vinyl wall base
- Accessories for all the above and more.
- Its professional team seamlessly connects you to over 500 reliable manufacturers globally, structured to meet the most challenging demands in the stated product categories.
- GCSource dispels the notion that manufacturers direct, discounted pricing stands apart from delivering best-in-class quality. It insists that by installing their own-sourced materials it’s the developer’s most straightforward route to a tremendous trouble-free result.
- One notable point is that when it comes to flooring and windows, specifically, their installation is limited to a 100-mile radius from Chicago. This, however, doesn’t detract from the compelling material price benefits without installation included.
Tie in with them today; it will open a new lease of life when it comes to achieving stress-free project completion.