Integrated procurement and inventory management can significantly help construction firms and contractors to reduce cost, manage risk, and ensure material availability across all construction sites. From forecasting to material consumption analysis, various construction processes can be enhanced considerably when builders adopt an effective construction management software.
With materials accounting for close to 65-70% of total costs, managing procurement and inventory efficiently will impact project profitability across construction sites. With the adoption of construction management solutions, builders can have better control over material tracking and consumption, cost overruns, on-site requirements, and key inventory levels. Here is how a construction management software enhances material procurement and inventory management:
1-Streamlining of procurement and inventory management
Construction management software empowers builders to automate manual processes like supplier onboarding, creation of estimates, raising indents, approvals, contract awarding and purchase order issuance. By integrating inventory levels with project requirements, builders can accurately forecast ongoing material requirements for all construction sites.
Additionally, builders can easily manage multi-site requests and material delivery, with a sophisticated construction management software on-boarded. Team members can be seamlessly added to the platform, to optimize response and approval management for all material requests. By integrating procurement and inventory management through construction software solutions, builders can shorten the procurement lifecycle significantly and eliminate inventory bottlenecks.
Such software for builders and contractors are also mobile-friendly and cloud-based, making construction teams agile and always-connected. This boosts workflow productivity significantly, while keeping managers informed of developments, on-site updates, and daily progress.
2- Enabling enterprise-wide material procurement efficiencies
Key material procurement related processes, such as vendor analysis, supplier management, PO management, and order control, can be effectively managed when leveraging a comprehensive software solution. Builders can easily forecast material requirements, create comprehensive bills of materials, and engage with vendors digitally with the help of an integrated management platform.
The entire process of floating RFQs, receiving bids, analysing vendors, and awarding contracts can also be performed in a highly transparent way using the construction management software. Vendors are directly contacted via email, as they enter their bids through a secure link provided via the construction software.
There is also greater standardization introduced to the procurement process, through automated updating of stock, standardized BOM line items, and auto-generated notifications. This enhances process efficiencies by reducing manual errors and eliminating information gaps within procurement cycles.
3- Enhancing end-to-end material inventory control
Inventory management is a resource-intensive process that requires a greater level of digitisation and a complete builder software for better control. By adopting a construction material management solution, developers and contractors can make sure that materials are best utilised and are always available when needed on-site. They also ensure that there are no shortages during the lifecycle of the project, while also limiting cost overruns due to late-stage order placements.
Builders and contractors also gain data-driven insights on inventory levels, stock details, and materials requirements, from a single easy-to-use software platform. Material managers receive automated updates on inventory consumption, so that they are well-prepared to meet ongoing requirements. Firms also analyse dynamic real-time construction inventory insights across all projects, while issuing the right amount of materials to fulfil indent requirements. Site teams can review and upload GRNs against orders seamlessly, to complete the loop of procurement and inventory control.
Builders and contractors can benefit significantly by digitizing procurement and inventory management, especially as it boosts productivity, lowers material costs, and increases transparency across processes. By leveraging BuildSupply’s construction management software for builders and contractors, on-site teams can create bill of materials, raise indents, upload GRNs, issue purchase orders, manage project requirements and track inventory levels with ease. Project teams can also use mobile-based applications for on-the-go procurement and inventory control, while communicating on dynamic requirements seamlessly.