By / Jessica Kirby
Construction project logistics depend on and include planning, controlling, and executing materials, resources, and components between fabricators and the job site. It includes coordinating labor, materials, vehicles, and equipment to facilitate a logical, transparent, and efficient process, and disruptions in this area can be extremely costly.
Canadian Federation of Independent Contractors says 89% of small businesses are impacted by supply chain disruptions. Not surprisingly, construction companies are at the top of the list with 98% impacted in some way and 39% significantly impacted when deliveries or shipments are delayed, inaccurate, or incomplete.
For 88% of construction companies, shipping delays result in increased cost of goods and service. Most of these increases amount to around 20%, while 43% of construction companies experience increases of up to 45%.
The ways these businesses are impacted by supply chain disruptions is mirrored in internal shipping and delivery inefficiencies. The top challenges that occur with supply chain disruption also occur when a company can’t fulfill its orders because of internal shipping and delivery delays or inefficiencies.
Higher costs: Unavailability of trucks, drivers, space, and reliable scheduling—especially in a fast-tracked environment—add to overall company expenses, productivity losses, and reduced customer confidence.
How Tech Can Help: Look at ways to centralize processes and connect departments with live, real-time updates to the shipping and delivery schedule.
Lack of visibility: Multi-staged processes running under separate software systems and on a disconnected schedule is one of the most disruptive elements of the supply chain.
How Tech Can Help: Businesses that can see their order at every stage are better equipped to plan deliveries and schedule other equipment to align with shipping as required.
Poor collaboration and communication: When various departments responsible for an order are disconnected or rely on manual texts, calls, or emails to share information, the possibility for user error is high.
How Tech Can Help: Consider communication systems that prioritize collaboration by providing a central, mutually accessible platform for communication.
Research conducted by the construction software industry says technology is a moving factor behind the success of the transportation and logistics industry, and the use of advanced technology can increase revenue by up to three times, double instances of on-time deliveries, and improve company productivity by 80%.
Learn more about how BuildCentrix can optimize your shipping and delivery process. Visit buildcentrix.com to learn more and schedule a free demo today. ■