Managing the various stages of the homebuilding supply chain is critical in order to maximize profits at each stage. Last week, we heard from Scott Sedam that last year’s trade labor shortages will trickle down into this year’s material shortages. Communicating future purchasing needs from the buyer (that’s you, the builder) down the chain allows each participant to plan effectively and maximize resources. It also ensures you get your lumber when you need it.
BIG BUILDER presents a graphical representation of how a lack of communication can add time and money to the process of purchasing. This targeted look at each step in the chain can serve as your road map to success.
Homebuilder Supply Chain Pain Points:
- Raw Materials: suppliers base their work on estimates from the manufacturer.
- Manufacturers: with little information, manufacturers are forced to estimate future demand.
- Distributors: guessing quantities, sizes, colors, etc.
- Dealers: routinely react to one-to-two-day lead times.
- Trade Contractors: last-minute changes cause trades to arrive (or not) at the wrong time.
- Builders: you are felt to pick up the costs.
We consider Scheduling, Estimating and Purchasing to be a fundamental part of the production process. Because our complete ERP software solutions integrate a single software platform throughout your business, you are able to effectively communicate purchasing intentions through to your trades without additional bells and whistles.
Our systems, like NEWSTAR, FAST, and BuildTopia, include trade partner portals designed to allow builders to communicate effectively down the chain. Request a demo for more information.
Request a demonstration of how our solutions can help with these goals.
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