Connecting Contractors nationally, to Suppliers locally!

How To Expand And Diversify Your Materials Supply Chain

In order to mitigate issues like price inflation and poor product availability, contractors and housebuilders need to expand and diversify their materials supply chain.

This involves strategic planning and proactive efforts to identify and onboard new suppliers while maintaining the quality and efficiency of operations.

Why is it important to have a wide, diverse supply chain?

A diverse materials supply chain builds resilience and mitigates risks by reducing dependency on a limited number of suppliers. This diversity helps mitigate risks associated with potential disruptions, such as supplier failures, materials shortages, geopolitical issues, or unforeseen events like natural disasters or global crises.

Below we explain the steps you can take to diversify and expand your supply chain.

Market research and analysis

Conduct comprehensive market research to identify potential suppliers. Explore different regions, industries, and markets to diversify sourcing options.

Supplier identification and qualification

Seek out suppliers that offer different materials or services, both domestically and internationally. Evaluate potential suppliers based on quality, reliability, cost, and adherence to sustainability standards.

Building relationships and networks

Attend industry events, trade shows, and networking sessions to establish relationships with new suppliers. Engage in discussions to understand their capabilities and how they align with your supply chain needs.

Risk assessment and mitigation

Assess potential risks associated with new suppliers, including financial stability, reliability, and geopolitical factors (especially for international suppliers). Develop contingency plans to mitigate potential disruptions.  

Contractor negotiation and collaboration

Negotiate contracts that establish clear expectations, pricing structures, delivery schedules, and quality standards. Foster a collaborative relationship built on trust and mutual benefit.

Technology integration

Implement digital tools and platforms that facilitate communication and collaboration with new suppliers. Integration with supplier relationship management (SRM) software can streamline processes and ensure transparency.

Diversification across categories

Consider diversifying not only geographically but also across different types of materials and services. This can include exploring alternative materials, different grades or standards, or eco-friendly options.

Continuous monitoring and evaluation

Regularly assess the performance of new suppliers against established Key Performance Indicators (KPIs). Monitor quality, delivery times, compliance, and customer services to ensure they meet expectations.

Collaboration with industry experts

Seek guidance from industry associations or consultants experienced in supply chain diversification. Their insights and expertise can provide valuable strategies and best practices.

Compliance and ethical considerations

Ensure all new suppliers adhere to ethical standards, sustainability practices, and compliance requirements relevant to the construction industry.

By proactively seeking new suppliers, fostering strong relationships, leveraging technology, and maintaining stringent evaluation criteria, contractors and housebuilders can successfully expand and diversify their supply chains, enabling resilience and adaptability in an ever-evolving industry landscape.

Instantly expand your supply chain with The Build Chain

At The Build Chain, we understand those with responsibility for purchasing materials for construction projects are often low on time, so our solution helps you find new suppliers quickly.

On online procurement platform allow contractors and housebuilders to submit one enquiry form for materials which is then distributed to our network of suppliers which fit the location and nature of the enquiry.

With over 500 branches on The Build Chain, it’s easy to find new suppliers who have what you need where you need it.

Book a demo and we can sign you up straight away, allowing you to make enquiries today.

Share this article
Shareable URL
Prev Post

How To Take Control Of Your Materials Procurement Process

Next Post

A Guide to Key Sustainability Standards in Construction Material Procurement

Leave a Reply

Your email address will not be published. Required fields are marked *

Read next