The client asked our managers about a qualified audit in the context of construction materials to order from foreign manufacturers. We undertook in-depth analytical work to provide the company with the best-matching strategy for supply chain optimization. First, our managers asked our client about all the data entries required for the audit. Then, the construction market analysis took place.
Finally, all the insights were gathered to audit the business together with our client’s existing supply chain. The next step was to analyze other essential points that form the general picture and a solid background for future optimizations. Our managers, marketers, and analysts developed a special-purpose questionnaire to find out the following information:
- Reputation – backup plans, labor shortage policies, etc.;
- Cybersecurity – IT security strategy, internal audits of the IT systems, etc.;
- Geopolitical exposure – locations covered with the international trade projects of the company;
- Quality & guarantees – what policies, licenses, and guarantees in the relationships with the client take place;
- Contracting background – demands and needs when it comes to the contract compliance aspect.
A range of weak spots was detected. The construction company had problems with the estimation and procurement strategy that is essential at the very beginning of any international trade relationships and supply chain build-up. Additionally, the contracting background was not enough to build partnerships with reliable suppliers risk-free.
Speaking about reputation and cybersecurity, there were issues as well. For example, the absence of tracking software and contracting programs decreased the overall progress and brought challenging situations to the whole pipeline.
Results of the Audit and Supply Chain Optimization
First, our team of experienced specialists offered a list of procurement process improvements. Then, we recommended implementing a compliance & contracting program together with tracking software for better freight security. Speaking about the optimization process of the supply chain, the following changes took place:
A range of new suppliers was found closer to the geolocation interests and needs of the company. For example, some construction materials are supplied from nearby Chinese wholesale companies now. This way freight costs were cut by 5%.
Additionally, the backup supplier search algorithm was applied. This way no supplier from the network is going to be lost. Most communication channels were transformed into digital-friendly. As a result, cargo tracking and keeping dialogs with suppliers become more result-driven and efficient.
As supplementary measures to improve supply chain performance, construction material quality assessment, supplier rebidding & replacement took place.
Together with cutting down costs for the supply chain process, the overall market performance of the construction company was improved. The estimation, procurement, and quality assessment backgrounds became better and brought numerous enhancements to corporate policies and results.
