US Construction Materials Industry Overview
The construction materials industry consists of a wide variety of companies ranging from mining, quarrying to processing of raw materials and suppliers. As one of the most important participants in any construction project, construction materials suppliers provide resources in the required measure and deliver them at the right times to complete projects according to schedule. However, projects do not always go as smoothly as planned. Companies face a plethora of challenges to identify strategic suppliers, analyze their performance, and mitigate risks associated with them.
Business Challenges Faced
The client is a large construction materials company in the US having a longstanding relationship with SpendEdge. They had segmented their suppliers to identify key strategic partners to assess opportunities to drive value while managing and mitigating risk. However, the stakeholders of the company lacked holistic visibility around supplier performance, financial and operational risk associated with suppliers, opportunities to collaborate, and progress on key initiatives. This led to ineffective supplier management, and a disconnected approach to managing supplier relationships. The Chief Procurement Officer, therefore, asked SpendEdge to provide necessary insights that can help drive maximal return from strategic suppliers.
The inability to identify strategic suppliers can make it difficult for construction materials companies to complete projects on time. Request a free proposal to access our tailor-made solutions.
Our Research Approach
SpendEdge deployed a team of experts to drive 360-degree visibility into suppliers and helped the client shift from traditional relationship management to more proactive and collaborative supplier engagement. They collected relevant data from both internal and external sources and delivered a holistic view on strategic suppliers against key criteria – financial metrics, strategic developments, product launches, M&A, innovation and collaboration opportunities, risk management, and performance.
The insights provided helped the client to identify strategic suppliers that could provide the most opportunity for joint initiatives and ultimately deliver value through increased efficiency, more collaboration, and innovation. This resulted in better savings and cost avoidance. The solution provided helped the client to assess potential financial weaknesses of suppliers and devise action plans to minimize the risk.
Want to gain supplier-specific insights to identify the best fit suppliers for your business? Reach to our experts for comprehensive insights.
Extensive evaluation of the capabilities of strategic suppliers helped the construction materials company to avail materials at better prices and achieve $35 million in cost savings. The predictive approach adopted by our experts rather than simply descriptive intelligence on the supplier network further enabled informed decision making.
Identifying the right suppliers is crucial for companies to procure quality materials at the right prices. Request free access to our web-based procurement platform to keep up with the construction materials market insights.
Procurement Challenges Facing the Construction Materials Industry
1. Worker shortage and retention is one of the key challenges faced by construction materials companies. The industry suffers from a lack of new blood and material suppliers find it hard to keep employees onboard and improve labor management.
2. Adopting new technology is the need of the hour for companies to improve their operations. However, companies struggle to find the best technology to adapt and implement.
3. At times, delivery from the manufacturer may be delayed, or materials may only be procured from specific locations. This makes it difficult for material suppliers to manage their supply chain.
To know how you can tackle these challenges and gain a competitive position in the construction materials industry, request more information from our experts.