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The Dynamics of Supply Chain in the Construction Materials Industry

The Dynamics of Supply Chain in the Construction Materials Industry
The Dynamics of Supply Chain in the Construction Materials Industry
Written by logicpin

The horizon of the construction trade distribution chain has become quite extensive. It covers the roadways we traverse on, the abodes we dwell in, the commercial complexes we work in and such other types of infrastructure in Noida city.

However, when the working of this distribution network is inspected closely, a large amount of inefficiency and waste is detected in it. In simple terms, the construction supply chain business is the only one that requires considerate revamping immediately. Now the questions that occur in mind are – Why transformation is needed? What are the various challenges involved in it? How can the organizations initiate the transformation of their supply networks? Trukky .com has endeavored to discover the answers to these thought-provoking questions. But before undergoing these solutions, it is essential to have a basic understanding of the construction materials distribution chain in Noida and how it differs from other delivery chains. 

  • Basics – A lot of people might perceive supply chains as the container ships or tankers crossing across the oceans and not as asphalt or concrete that is applied in less than an hour of being supplied on-site over several times a day. Just like any other supply chain, the construction distribution channel also comprises of sellers, buyers, and distributors. And this model works in the construction supply channel even at higher end as well. 
  • Uniqueness – Things are different at a job site. The construction material industry features some unique concerns when it is compared to the other industries:
  • As far as the construction of commercial complexes, housing societies, bridges or highways is concerned, it is not a straightforward transaction because inspectors are involved at each step of the whole operation. 
  • When a consignment of materials reaches the job location, it is not considered an official dealing until the inspector authenticates the material. 
  • The verification of material may even take 28 days in some cases when a lab technician does the certification. 
  • Another peculiarity of the construction projects is that they are customized supply chains. For instance, there are two different job sites in Noida employing the same contractors and constructing identical roads or buildings, but still, they will differ in terms of weather and other such local conditions. These factors can entirely alter the working and execution of these projects.
  • The Digital Revolution – Digital revolution is a recent issue across all supply channels these days. But what role does it play in an industry as distinctive as the construction materials?  Trukky.com answers this. 
  • From the macro-level perspective, be it a contractor or supplier, everyone is restrained by the limited resource supply. 
  • According to a recent study conducted by the Global Infrastructure Hub (an initiative taken by G20), the global expenditure on the infrastructural facilities over the succeeding 25 years is predicted to be of $79 trillion, whereas the actual demand is likely to be of $94 trillion, thus creating a shortfall of $15 trillion that needs to be filled. 
  • A major problem persisting in the construction industry is the low productivity owing to the old-fashioned paper-based systems. 
  • It is time to initiate the digital transfer of information and move to a data-driven line of business. 
  • Digitizing the data would result in boosting the returns on investments. 
  • The use of digital collaboration tools would save about 3-4% on transportation and material costs. 

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The Dynamics of Supply Chain in the Construction Materials Industry

logicpin

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