How Adapting Your Processes Can Help Make Handling Supply Chain Issues Easier
Nearly every industry is experiencing supply chain issues, and ours is no exception. The pandemic has created a building materials shortage, and people spending more time at home has triggered a home building and remodeling boom. Unfortunately, these challenges aren’t likely to end anytime soon — the ABC Supply Pro Council anticipates they will continue throughout the year.
But there is good news too. There are steps you can take to make navigating the price increases and delayed materials a little easier. Consider these recommendations from our Pro Council.
1. Place Orders as Soon as Possible
Backups in the construction supply chain mean that materials can sometimes be delayed by weeks or even months. That’s why it’s important to order materials as soon as possible. The earlier you order, the better your chances are of receiving materials by the time you’re ready for them.
2. Make Sure You Have Accurate Data
With long lead times, the last thing you want to do is redo an estimate or reorder materials because you didn’t have the most current pricing information or measured incorrectly. ABC Supply customers can use myABCsupply to request measurement services, check the latest pricing, build estimates and review order details for accuracy. Also, be sure to double-check your measurement! Be prepared with tools, like drones, and software you’ll need to ensure you’re placing accurate orders. Industry-leading software integrated with myABCsupply includes:
When in doubt, you can always order a little extra material to ensure you’ll have enough.
3. Lean On Your Suppliers for Support
Keep in close contact with your building materials suppliers, who can keep you updated on what supplies they anticipate having in stock. Your suppliers can also provide letters from manufacturers verifying price increases, which can help justify any additional costs you may need to pass on to your customers.
4. Educate Your Customers
Your customers are likely aware that there is a boom in building and remodeling. However, they may not be aware of the pandemic’s effect on the construction supply chain. Explain to them that many manufacturers are dealing with backlogs, and the high demand for materials is driving price increases. Be honest about how long it may take for materials to become available. It’s better to be realistic about supply chain issues rather than overpromise on cost or deadlines.
5. Consult With Lawyers
Supply chain issues, including a truck driver shortage, may delay when you can start or finish a job, and rising material costs may mean that your initial estimates become outdated quickly. Adding a price escalation clause or language related to delays is crucial to ensure that you’re not in breach of your contract or stuck absorbing material costs you can’t afford.
6. Adapt Your Processes
Consider any processes you usually follow that could be adapted to better serve your customers during this challenging time. For example, consider what temporary solutions exist for roofing, windows or siding so that interior construction can continue while you wait to receive your exterior materials. You may also want to reconsider the material options that you share with your customers. For example, instead of providing all possible materials when you begin a job, present a smaller selection that you’ll be able to access. Your supplier can help you determine which options are most likely to be in stock.
7. Focus on Stability
Consider whether it’s the right time to make large investments in your business. With so much fluctuation happening in the industry, it may be safer to avoid taking unnecessary or costly risks. While there is high demand for construction work, it’s hard to predict how material delays and rising costs will affect your business.
While the building materials shortage isn’t something you can control, there are actions to mitigate its impact on your business. By making some changes to how you do business and relying on your suppliers for support, you’ll set yourself up for success. Visit the ABC Supply blog to learn more about how contractors are adapting to the challenges of the pandemic.
The ABC Supply Pro Council consists of experienced associates from across the U.S. Its aim is to provide contractors nationwide with industry advice and insights to help them seize opportunities and overcome challenges they face as they manage successful businesses. Contractors can visit ABC Supply’s News & Events for additional tips and resources from the Pro Council.
The advice given herein is provided for general educational and information purposes only. It is not intended to constitute legal or other advice or services and should not be used in place of consultation with appropriate professionals. The advice given does not create any warranty. Reliance on such advice is solely at your own risk.