Home / Insights / Blog / How to build a more resilient construction supply chain How to build a more resilient construction supply chain A resilient supply chain can be the difference between completing a project on time and costly setbacks.Considering the dynamic nature of the construction industry, where delays, material shortages and unforeseen events are often common, it’s vital you can rely on your supply chain – yet ensuring resilience can often be a challenge. You want total confidence that your subcontractors’ compliance, finances and insurances are all in order.In this blog, we’ll take a look at some of the tools available to enable this confidence across your supply chain, and the steps you can take. Simplify supply chain management The latest technology innovations are playing a powerful role in making sure your clients remain happy. Software platforms now enable seamless communication and collaboration between buyers and suppliers, providing real-time visibility into inventory levels, orders and delivery schedules.Supply chain management software – such as Constructionline’s Supply Chain app – lets you monitor and manage all your suppliers from a single platform. The software allows you to easily create segments or lists of subcontractors, quickly add or remove suppliers from these lists, or organise by type or location. Users can also set a compliance policy for each segment. Enhanced compliance Meeting industry standards is crucial to maintaining a resilient supply chain. In the construction industry, the Common Assessment Standard and PAS 91 pre-qualification questionnaire provide a standardised process for evaluating a supplier’s capabilities. Adhering to these standards helps ensure suppliers have the necessary qualifications and capacities to meet project requirements.For instance, the Common Assessment Standard and PAS 91 together assess a company’s credentials for: Health and Safety Finances Insurance Environmental Management Quality Control Equal Opportunities Modern Slavery Anti-bribery and corruption When growing your supply chain, considering only those that comply with the Common Assessment Standard and PAS 91 provides confidence in the stability and resilience of your network. Financial health check-ups and other risks Supply chain resilience relies heavily on the financial stability of suppliers – especially during a period of economic uncertainty. A financially vulnerable supplier is more likely to face disruptions, fall into administration or even go out of business, jeopardising the entire supply chain.To mitigate this risk, buyers should proactively monitor supplier insurance and finances. Some steps you can take to ensure supplier financial stability are:Verify InsurancesSuppliers should provide proof of adequate insurance coverage to mitigate potential liabilities and risks associated with their products or services.Audit FinancesRegular financial audits of key suppliers can help identify any concerns as soon as possible, so that appropriate action can be taken.Diversify SuppliersDepending on a single supplier makes you more vulnerable. Diversifying suppliers spreads the risk and ensures continuity, even if one supplier comes into difficulties. Platforms such as Marketplace can help you grow your network, letting you easily promote new tender opportunities to pre-qualified subcontractors. Are the risks on your radar? To make sure any potential risks stay on your radar, there are a range of intuitive and insightful tools available that you can take advantage of.The first is Risk Radar, which helps you reduce your reputational risk with accurate insight into a supplier’s financial, ethical, environmental and safety standing. While traditional methods might involve manual checks and time-consuming tasks, this risk assessment software solution streamlines this entire process. Combining information from a broad range of data sources, it makes it easy for companies like yours to review and assess risks. Our Risk Summary tool also offers an at-a-glance overview of a supplier’s health. Want to know the percentage of time they have been verified in the last six months? The current status of their insurance, SSIP schemes and financials? Now you can, with a few simple clicks.Meanwhile, our analytics tools provide irrefutable evidence of just how compliant and verified a potential partner may be. Build greater resilience In the construction industry, a resilient supply chain is not just a competitive advantage, it’s absolutely essential.By leveraging supply chain management software, adhering to industry standards, ensuring the financial health of suppliers, and using tools for risk assessment, construction companies can build a robust and adaptable supply chain, capable of weathering unexpected challenges.The key lies in proactive planning, collaboration, and embracing technology to create a supply chain that’s not just strong, but also flexible enough to handle whatever the future holds. Embrace these steps, and your construction projects will be better positioned for success in an ever-evolving industry. To discuss your business’s supply chain and find the right tools to increase or maintain its resilience, contact us today. Get in touch Key Takeaways In the construction industry, a resilient supply chain is not just a competitive advantage, it’s absolutely essential. Meeting and keeping up with industry standards is a crucial part of maintaining a resilient supply chain. Ensuring your supply chain meets standards such as CAS and PAS91 provides confidence in the stability and resilience of your network. Leveraging the latest technology solutions can help spot and mitigate risks in advance, monitor and manage your suppliers in one platform and provide real-time visibility on your supply chain. Blog Buyers, Health and Safety, SSIP, Supplier Related case studies Supplier Case Studies Hill Hill is one of the country’s top house builders, specialising in developing homes of distinction across London and the South East. Innovation, design excellence, quality build and respect for the local environment are key to their success, which has been recognised through several major industry awards. … Read more Buyer Case Studies VINCI Construction UK VINCI Construction UK saves 22,000 man hours in procurement and supply chain management with Constructionline and the COINS iPortal VINCI Construction UK is a market leading national construction and facilities company, and part of the VINCI Group. The organisation employs 4,000 people across four divisions … Read more Buyer Case Studies Wates Group Following a comprehensive review of their supply chain data management systems and the providers of this technology available in the market place, construction and development firm Wates Group adopted Constructionline in a bid to streamline procurement processes and reduce risk across all its contracting divisions. … Read more See more
