4 Essential Areas For Controlling Construction Inventory

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4 Areas To Focus On For Controlling Construction Inventory

Construction inventory management plays a vital role in ensuring budgetary, quality, and timeline compliance for construction projects. With housing sales set to rise 35% Q-o-Q during the festive months (Oct-Dec), developers are expediting completion schedules, while ensuring minimum cost overruns and maximum material utilization. Developers and contractors must focus on these critical areas for controlling construction inventory, and to streamline project delivery across their portfolio.

1. Incorporating process workflows for inventory movement
Ineffective workflow management protocols can introduce uncertainty and project risks, in terms of mismanagement, budget overruns, mishandling, and quality issues. Builders and contractors can significantly strengthen their construction material management by introducing overarching process-based workflows for all inventory movement.

By implementing control and checking process-based protocols for ordering, shipping, handling, utilization, and storage, contractors can ensure that all construction material is being optimally consumed. Process compliance and monitoring is also greatly streamlined by having complete information about the stock details through extensive reports and regular process audits.

2. Streamlining construction material procurement
Material procurement is one of the most important aspects of cost and quality control for construction projects, which is why contractors need to streamline sourcing processes and introduce greater efficiency into their practices. Online portals offer superior price discovery and request for quotation management while providing logistics tracking capabilities for greater control over all materials.

From selecting the right vendor to issuing purchase orders, contractors need to optimize sourcing holistically to ensure that there is adequate stock available for construction work. This lowers the risk of premature stock depletion and costly last-minute orders to facilitate time-bound on-site development. Project managers also need to implement effective indent management systems, so that there are no delays in material fulfillment for site work completion.

3. Effective on-site management of construction materials
Mismanagement and wastage of construction materials can lead to cost overruns and significant challenges with timely project completion. Contractors can implement stringent storage protocols for on-site management of materials, to expand their lifespan and maintain their quality. Additionally, comprehensive mapping of construction materials on-site should be performed to ensure that there is limited wastage of key materials.

A robust construction material management software should be incorporated to streamline all processes related to the effective management of on-site construction materials.

4. Adopting technology-driven material management solutions
With the value of under-construction Indian real estate reaching USD 243 Billion (H12020) and housing expanding from 49% to 88% over the last decade, contractors are focusing on completing projects on time with the help of technology-driven solutions. Material management platforms offer greater visibility on material planning, site consumption, and inventory details, for better construction inventory control.

Teams can manage the entire material lifecycle, from planning to utilization, using an end-to-end material management solution. Managers can gain access to RFQs (requests for quotes), POs (purchase orders), BOMs (Bills of materials), indents, and GRNs (goods received notes) for all projects seamlessly within the platform. This significantly saves time and resources, integrates the procurement value chain, and enables automation-driven efficiencies for comprehensive construction inventory management.

In conclusion
Contractors can significantly streamline their construction inventory control by implementing key workflows, optimizing procurement, and leveraging a comprehensive technology platform, among other solutions. BuildSupply Material Manager is an end-to-end construction inventory management platform that introduces greater visibility, accountability, and efficiency into all construction projects. Contractors can add multiple suppliers, create detailed BOMs, manage RFQs & indents and issuance, and upload GRNs easily, while performing real-time business insights for enhanced inventory management.

Reference links:
https://economictimes.indiatimes.com/industry/services/property-/-cstruction/value-of-real-estate-under-construction-jumps-to-243-billion-from-94-billion-in-2009-report/articleshow/78233143.cms?from=mdr

https://www.cnbctv18.com/real-estate/housing-sales-set-to-rise-35-this-festive-season-anarock-7205921.htm

https://www.nbmcw.com/tech-articles/project-management-arbitration/40324-effective-materials-management-in-construction-projects.html

http://www.ijesrt.com/issues%20pdf%20file/Archive-2017/September-2017/27.pdf

https://home.kpmg/content/dam/kpmg/in/pdf/2020/04/reviving-the-construction-sector-in-india-post-covid19.pdf

https://theconstructor.org/construction/construction-materials-management/7200/

https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/the-next-normal-in-construction-material-distribution

https://www.jll.co.in/en/trends-and-insights/research/pulse-real-estate-monthly-monitor-september-2020#contact-us

https://www.nbmcw.com/report/construction-infra-industry/42406-technological-advancements-disrupting-the-global-construction-industry.html

https://www.anarock.com/research-insights/indian-housing-sector-disrupted-transformed-recovering

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