Construction is a complex business, and sometimes, it can get messy. Contractors spend up to 60% of the contract value to buy material.

Without developing a well-managed supply chain or proper protocols for purchasing and inventory management, your staff could be overspending, double-buying, or buying outside of the project’s requirements, which incurs unnecessary cost and time.

Manual supply chain processes are prevalent in the industry; communications between site and office depend heavily on email or instant messaging. These communications often involve going back and forth between processing and approval departments, which can stretch the process up to a few days before a site order is approved.

Furthermore, expenditure control involves heavy administrative effort of data entry in order to generate analytical reports on the procurement. These reports are highly dependent on the quality of data entry, where the risk of producing inaccurate reports is high.

Preserving profitability requires strategic spending, which requires managing the supply chain efficiently.

To do so, contractors should invest in a cloud-based, centralised digital procurement software. Site personnels can conveniently order building material from their phones at any point in time, no matter where they are. Then, the relevant departments will be alerted for approval through their phones or tablets, thus cutting short site order approval time from days to minutes.

Furthermore, profitability of any project hinges on good decision-making, which requires good data to begin with. With digital procurement or e-procurement software, management will receive automated, in-depth spending reports. These reports allow management to visualise and dive into the project expenditure, thus allowing overspending risks to be identified early on.

Moreover, a good digital procurement software helps you to collect, analyse and use your past procurement data to keep you informed on material price history and project material spending. These features may even lead to discovering hidden expenses in areas you had not previously considered.

In summary, by integrating the right technology to connect your construction sites and headquarters, you can build a strong collaborative platform for your construction team to easily manage procurement spending. Through this platform, your construction business will be able to operate with enhanced visibility and optimised procurement processes—minimised risk, maximised profit.

About Speedbrick Solutions

Speedbrick Solutions is a provider of cloud-based construction management software. The platform facilitates a more efficient work approach with a modern touch, specifically for construction industry stakeholders. Among the services Speedbrick offers are material procurement and management, revenue tracking and management, subcontractors claim control, and analytics reporting. Speedbrick has served projects over RM18.6 billion and has helped clients achieve up to 3.6% additional profits, making it a formidable player in its field. With smart construction management software and solutions, Speedbrick also helped its clients to save up to 133 hours per month.

Find out more at www.speedbrick.com.