Construction is one of the most cost-oriented sectors in any economy, with manufacturers, fabricators, and distributors in the supply chain always announcing price increases. According to Daily Commercial, an increase in logistics and delivery expenses are the key reasons for rising construction costs. Industry experts report delivery expenses might add 1% in inflation to construction, as providers face difficulties managing costs and meeting increased delivery expectations.
Besides high delivery costs, building operators face other logistics challenges. This includes compliance and supply chain issues, time-consuming manual processes, and paperwork. Fortunately, there are effective steps for building operators to address these obstacles. Keep reading to learn how building operators can overcome construction logistics challenges.
Enhance Local Market Knowledge
Over the last two years, access to building commodities, such as lumber and steel, has been challenging. The primary reason for limited access to construction materials has been supply chain shortages that hit foreign companies hard, resulting in a slow progression of construction projects, including repairs and maintenance. To overcome supply chain problems, construction companies have turned to local suppliers. For this reason, understanding the global and local market is crucial when sourcing for construction materials.
As a building operator, you should also establish connections with local suppliers. That way, you can easily source electrical materials, especially those required for repairs and replacements. Accessing building materials in local markets helps ensure construction projects continue with little or no interruptions.
Hire a Logistics Management Company
Your primary role as a building operator is to ensure all electrical equipment, BAS (building automation systems), HVAC appliances, and plumbing systems function effectively. With this in mind, you must inspect and schedule repairs of damaged equipment quickly. While you may want to handle the procurement and transportation yourself, it pays to hire a third-party logistics company.
Outsourcing these tasks to a logistics management company is key to ensuring building materials are delivered on time. This helps you stick to project schedules, thus reducing operational costs and save time. When logistics delays occur, property owners spend extra money on building contractors, especially if they have fixed a schedule for repairs or maintenance. Since logistics operators oversee all processes in the supply chain, from managing and tracking last mile delivery, you can be sure of timely delivery of mechanical materials for commercial and residential buildings. Aside from monitoring goods, logistic companies ensure customers enjoy all aspects of last mile delivery, including speed, information, security, convenience, and flexibility.
Apply an Integrated Approach
Implementing an integrated approach that blends design and strategy with preventive maintenance and delivery helps you resolve supply chain and logistics issues. You’ll not only eliminate the risk of cost overruns, but also scheduling delays. When facility managers perform preventive maintenance, they promote optimal equipment performance and reduce the risk of unexpected malfunction. Routine maintenance of property helps detect signs of equipment damage early. That way, you can source for the required materials before a breakdown. Doing so helps prevent logistics issues and scheduling delays.
Working as a facility manager or building operator is rewarding and challenging at the same time. Challenges building managers face are supply chain and logistics issues when sourcing for building materials. To overcome logistic issues, facility managers need to enhance their knowledge of local markets, outsource logistic management companies, and implement an integrated approach that combines design, strategy, preventive maintenance, and logistics.
This article was authored and contributed by Jackie Edwards. Now working as a writer, Jackie Edwards started her career in Environmental Health in the Public Sector, but after becoming a mom refocused and decided to spend more time with her family. When she’s not writing, she volunteers for a number of local mental health charities and also has a strong interest in ecology, wildlife and conservation.