The Key to Better Supply Chain Relationships
In an industry as complex and competitive as construction, it’s vital to maintain a productive and efficient project workflow. When we chat with general contractors and subcontractors about their ongoing issues and pain points, we often hear about the supply chain and the challenges they face maintaining a solid relationship with theirs.
Your supply chain of course refers to the physical transfer of materials from suppliers and manufacturers to your job site, ending in a complete project for your owner. The completion of the job is contingent on all the correct materials arriving in a timely manner, and exists in the finite space where fair price and sufficient quality come together.
In addition to physical materials, your supply chain also encompasses a delicate balance of relationships that must be effectively managed for your project to be completed successfully. As the general contractor, you reside in the middle of this chain of relationships as the one who interfaces with both the owner and the subcontractors and other laborers on the job site. Most often, you represent the interests both up and down your supply chain.
Traditional supply chain relationships have been facing some pushback in recent years. As ‘Designing Buildings’ describes it on their Supply Chain Management Wiki, “project relationships are short term and have defined start and end points. The resulting lack of continuity prevents the innovation and improvement of process. Changing the perspective from delivery of a ‘project’ to the process of ‘project delivery’ requires the building of long-term relationships, partnering, and alliancing.”
As ‘Designing Buildings’ highlights, we believe focusing on the process and relationship building is what allows for more effective supply chains. That’s the key: collaboration and visibility for all parties.
Many of our GCPay customers have already moved toward prioritizing relationships rather than transactional supply chains. For example, Dome Construction out of San Francisco, California prioritizes working with the same subcontractors whenever possible. Long term relationships with subcontractors allows for consistency and trustworthy work being done, as well as improving processes over time.
GCPay was created specifically to help general contractors and subcontractors collaborate on the application for payment process. Dome Construction, whom we mentioned earlier, was tired of their manual, paper-based process for payment applications. Subs were constantly reaching out for updates and status inquiries because they had no ability to see for themselves. Their accounting team was bogged down and the subs were frustrated by the slow process.
Adopting GCPay allowed Dome to offer full visibility for subcontractors right in the platform. On their end, subs can see schedule of values for the project, compliance requirements, change orders, and more. And if there is an issue with the application for payment, subs are notified automatically. Dome was relieved to free their accounting team from the endless email trails.
We believe the best way to reach the point of total collaboration and visibility with your supply chain is to adopt technology solutions. A technology platform like GCPay provides a central location for general contractors and subcontractors to easily stay up-to-date on outstanding tasks and upcoming deadlines.
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