Many construction companies struggle with problems related to material management or construction site over ordering. Over ordering requires the construction manager to address issues with inventory control, spoilage, or theft. The good news for construction contractors is that these circumstances can be managed. With the help of construction management solutions, we can prevent stock outs or over ordering for your organization.
In this blog post, we will examine how implementing a construction management solution can benefit your company’s material procurement and management, enabling your construction managers to deal with situations involving stock outs or over ordering of materials, which can be costly for your company.
Common Causes of Construction Material Waste
Here are some of the most significant causes of construction waste.
Materials Procurement And Management
This has been noted as among one of the major contributors to construction waste. A significant portion of material waste produced by material management, which frequently results from material storage, misuse, improper handling, or poor quality, could be addressed using this technology.
Planning And Construction Techniques
This shows the system’s waste of construction materials as a result of inefficiencies brought on by poor planning and scheduling, inadequate waste material tracking, coordination difficulties, and problems with control, supervision, and miscommunication.
Design And Documentation
Design and documentation are two additional significant causes of material waste. This issue can be avoided by ensuring that everyone involved views the same copy of the document and that any last-minute changes are reflected in real-time in the copy the stakeholder is holding.
Streamlining Procurement And Material Management
Construction contractors can automate manual procedures like the hiring of suppliers, the production of estimates, the raising of indents, approvals, the awarding of contracts, and the issuance of purchase orders by using construction management solutions. By significantly streamlining these processes, procurement and material management become more effective and efficient.
With integrated construction management, supervisors can also handle requests for multiple site services and the delivery of materials. It is simple to add suitable team members to the platform to streamline response and approval management for all material requests. More importantly, if there was a single platform that provided a uniform view, the supervisor would be able to manage the acquisition and use of materials.
Increase Inventory Accuracy
Stock outs can unintentionally result from inaccurate inventory, which is why keeping Your inventory accurate requires minimizing human error. By regularly checking and updating stock levels, businesses can prevent inventory disparities, but doing so manually increases the chance of occasional mistakes.
For inventory information to be updated and shared throughout a centralized system in real-time, it is more efficient to use an inventory management solution that enables employees to scan items when they are received and picked to fulfill orders.
Improve Forecasting Capabilities
One crucial aspect of doing business is being able to predict customer demand. Of course, consumer demand can suddenly and drastically change, making forecasts useless. However, in most situations, demand forecasting can assist in maintaining inventory at an ideal level, preventing stockouts, shortages, and overstock, and ultimately saving money.
Consider consumer trends and seasonality to enhance forecasting abilities. Additionally, think about implementing an inventory management system that can automatically generate reports and insights to support forecasts.
Also Read: Essential Tips To Streamline Construction Material Management
Plan Ahead
Be sure to take preventative action before you find yourself in an overstock situation. Try working with your suppliers to develop shared risk solutions, spaced deliveries, or longer payment terms to protect your cash flow. Additionally, assigning accountability and responsibility to someone when it comes to inventory is a great way to enhance overall management and lower the likelihood of excess.
Find out how long a specific item can stay in the warehouse before immediate action is required. The response should vary depending on the item and stock. It would also be best to consider aspects like storage expenses, item shelf life, lead times, and how quickly items become outdated.
About Taurus
Taurus is an accredited construction company based in Fort Saskatchewan. We have a group of highly qualified and knowledgeable builders. Taurus Projects takes great pride in its team of expert construction professionals who strive to provide our clients with first-rate construction services. We oversee all kinds of construction projects, from material management to site services. Learn more about Taurus here.
For professional construction management services, contact us now.