How to Incite Transformation and Change in the Supply Chain and Construction Industry
Supply chain management is a well-trodden route to business success across many industries. One that even late-to-the-party arrivals like the construction industry can benefit from. The good news is that supply chain management is a mature set of processes that work across many markets. And the supply chain software and change management tools that power new processes are also well understood. Therefore, all it takes is the will of your construction firm leadership, the understanding of partners and workers, and a desire to perform better at all levels to make this work. In this article, we explore how to incite transformation and change in the Supply Chain and Construction Industry
Embracing and Driving Cultural Change
Any effort at transformation within a business cannot simply be done as a box-ticking exercise. Teams and workers need to understand why change is coming, what the benefits are, and how it improves the future of the business.
As part of that, the ideas of closed shops, trade cliques and dictatorial management must all be left behind. The construction industry must accelerate past traditional, siloed approaches and embrace a forward-thinking, performance-based mindset.
That ominous-sounding concept requires strong leadership, a joined-up approach to the supply chain system and construction business, with individuals championing innovation, and leading collaboration efforts.
The Art of Streamlining Procurement and Supply Chain Processes
To reinvent and transform a construction supply chain for the coming decade, the whole system must be understood and modelled, with inefficiencies identified. Gartner has published a general roadmap that can be used by any business to improve its supply chain.
Streamlining can work across procurement processes using software, with the option of automation ensuring the best price for supplies, machinery and trades across a construction project. Software helps improve transparency across the supply chain, reduce supply and administrative costs, and speed-up decision making, with better outcomes.
But the process doesn’t end there.
Construction firms need to promote an ongoing culture of improvement, identifying new areas where the supply chain can be boosted. By encouraging employees to identify and implement any changes, they see more of the value, and should be rewarded for their efforts.
Recognising team and individual transformation achievements motivates the business, encouraging positive behaviour, and encourages workers to switch on to the possibilities of change. Backing that up, a culture of open communication and feedback where all ideas are discussed and tested will help improve any area of the construction company beyond the supply chain.
Embracing Technological Innovation for Transformation
Modern software can help any business perform better, and project management tools for construction firms are just one example. Broader construction business transformation can happen with software used to create a virtual version (or digital twin) of the business. Digital twins generate around 19% savings, and a 22% return on investment.
Advanced technologies like Building Information Modeling (BIM), the use of drones, and robotics can all deliver strong results across project planning, execution, construction and management.
AI and Data Analytics
The latest software uses AI and data analytics to improve planning and operations performance, and can boost supply chain operations by forecasting demand, optimising inventory, and mitigating risks. At each step construction firms need workers who understand the technology and how it applies to their part of the trade.
Teams also need to work together to share data, so that one area isn’t left behind, or its reports are buried, invisible to the rest of the leadership. Through a process of clarity and transparency, the whole business can move forward using smarter data tools to help it work effectively on existing projects and create the best budget scenarios for future work.
Conclusion
Transformation across the construction industry and its supply chains is a challenge for some but an opportunity for most. By embracing technological innovation, fostering a sense of collaboration, you can change the business to work smartly at all levels, from tax compliance to health and safety.
Change will help the industry adapt to evolving demands and a changing regulatory and trading landscape. These strategies help identify your existing challenges and make you more competitive compared to rivals who are too happy to work as they always have.
At the Institute of Supply Chain Management, we deliver flexible leadership and management training courses which are tailored to every learner’s individual needs. Every course level includes leadership development training modules as well as covering a range of leadership training topics. Whether you’re looking to build upon your existing management qualifications or gain confidence within your current leadership role.
The IoSCM Management Academy
The IoSCM Management Academy is here to help you with the next steps in your career. Unlike corporate leadership training programs, we offer online, distance learning management courses that use your existing work experience so you’ll never relearn something you already know. From introductory leadership training for students and individuals (Levels 2-3) to advanced leadership training programs for managers (Levels 5-7); there’s a course that’s right for you, to support your personal career goals or for your entire team.