If there’s one thing the building industry has learned from COVID-19, the procurement processes for supply chain management and materials are weak and vulnerable. With this most recent shock to the system, it’s time to get prepared for what might come next, and to batten down the hatches to protect business as it is today.
According to Michael van Keulen, “It has also shed light on the need for organizations to have complete visibility into their business spend and more agility in the procurement process.”
And according to MachineDesign, companies can get through these trying times by taking three important steps:
- focus on future agility,
- building strategic relationships with suppliers,
- and investing in the right technology
Touching on that final point, investing in the right technology when it comes to supply chain management, most construction companies have a weak system in place to handle purchasing, receiving, and invoicing. In many cases it is all manual processing, ordering, and tracking (ie. calling a salesman who calls his office who calls you back to give their best guess on tracking the order)
It is becoming common practice for these construction companies to be investing in SaaS platforms to help manage the supply chain process.
This technology will bring increased transparency into organizational spend and supply chain risk allowing organizations to make more informed decisions about the products they buy, the suppliers they work with, and the ways they can simplify their payment processes. Blockchain is already proving its usefulness in supply chain management across multiple industry such as logistics, energy, and manufacturing; mega companies such as Maersk, Fedex, Ford, and many others are going “all in” on blockchain.
Join DigiBuild’s mission today, to see how we’re paving the way for blockchain use in construction.