The Construction Market is Growing
In their Vertical Market Outlook Series on construction, the Equipment Leasing and Finance Foundation noted that “2017 saw construction spending hit an all-time high in the United States and the consensus from a number of industry experts and consultants is that the momentum will carry through in 2018.” It is clear that the construction industry is an area of growth and opportunity, but it is also an industry that, because of a lack of technology adoption, struggles to realize all the benefits of a growing market.
According to the McKinsey Global Institute, the Construction industry represents one of the least digitized industries in the world. This lack of technology adoption could explain why, according to the PlanGrid report, “35% of construction professionals spend over 14 hours /week on non-productive activities.”
However, emerging technologies are now simplifying many of the processes that have plagued the construction industry for decades, including the construction procurement process for a job site.
Automation of the Construction Procurement Process is Needed
A procurement platform that offers a simplified, efficient buying experience can dramatically impact the construction procurement process, which relies on receiving the right materials and at the right time to be efficient and profitable.
The successful use of procurement technology helps construction companies drive more profit by keeping spend under control. This all starts with the user experience and includes areas such as:
Simplified Checkout Process - Most procurement solutions require users go through an overly-complicated, multi-step checkout process with no ability to edit ‘accounting’ or ‘ship-to’ information at the line-item level. A simplified, ‘One-Click’ checkout offers users the same simplified checkout experience they have grown accustomed to on technology platforms like Amazon.
Improved Integration with Supplier's Catalogs - When buyers need to create a request for replacement parts, the punchout process is often over complicated and cumbersome. Offering users a way to seamlessly navigate to and integrate with suppliers' catalogs creates a dramatically simplified buying experience.
Providing a Method for Requisitioners to Collaborate on a Request - With multiple teams and shifts working on a project, many construction companies struggle with duplicate and incomplete orders, which leads to unnecessary returns, change orders and high shipping costs. Creating a request that can then be shared with other team members for feedback - prior to submitting it for approval - ensures order accuracy while maximizing shipping costs and reducing change orders.
Streamlining the Buying Process in the Real World
One Fortune 500 Construction company is using a solution to consolidate all of their vendor's catalogs into a single, Amazon-like Marketplace where users can search for ALL of their contracted goods, parts and services. Since they began using BuyerQuest, they've been able to dramatically reduce the time spent on non-optimal/non-productive activities by simplifying and streamlining the buying process.
By providing a highly simplified buying experience for their diverse user community - across a distributed, and often remote, operational footprint - their users can now search across over 2 Million SKUs in one place.
This company successfully deployed BuyerQuest to more than 10,000 users...in a single day.
The demand for construction projects can ebb and flow. It is critical for businesses to maximize their revenue potential on each project, spending more time building and less time in activities such as procuring replacement goods.
Streamlining construction procurement, particularly at an active construction site, has a real impact to the project’s ability to stay on-time and on-budget, driving higher profitability and improved resource availability for additional projects.
Learn more about BuyerQuest’s unique capabilities in construction procurement.