Your organisation is improving build quality, reducing costs and has a great customer centric approach. Our intricate knowledge of the Strategic Supplier market means we can optimise their performance across all key construction related service areas.
We know the Strategic Suppliers in the Construction Sector marketplace, really well:
Their strengths. The key attributes of each Strategic Supplier and what internal client disciplines you will need to have in place so they can achieve your outcomes and objectives, quickly.
Their challenges. Complex service delivery does not always go to plan. We can advise you on what diligence your team can put into place to assure these Strategic Suppliers deliver to your expectations.
Their contractual constraints. We know what most Strategic Suppliers will accept contractually, what they will not, and why. Our ‘Optimise’ process assures you can overcome these constraints and be fully contractually protected for fit for purpose services.
Your key expectation you should have from Strategic and Complex Supplier Relationships:
Optimum value in service and solutions delivery. These specialist suppliers represent themselves as ‘experts’ in their disciplines. Recent case law determines you can often rely on the supplier’s represented expertise to drive maximum value for money in your service delivery, even if your contract terms are ambiguous in terms of their responsibilities.
Benefits of using BPG to facilitate your Strategic Supplier Relationships
We know what practices work really well. Having optimised over 500 complex supplier relationships, we have deep expertise of trust building in relationships. We also have proven template documentation, including procurement structures, service requirements, agile fit for purpose contracts, implementation and operating governance, along with expertise in what actions you need to avoid to make sure your strategic supplier relationships achieve your outcomes, quickly.
Key Considerations when Construction Companies enter into Complex Supplier Relationships
How the BPG 'Optimise' Process delivers great Strategic Supplier Relationships
The BPG ‘Optimise’ Method is evidenced from over 500 complex supplier relationships. It shows there are 8 characteristics present in every successful complex relationship. We can help you successfully implement these quickly to improve service innovation, supplier relationships and drive down BAU costs.
Click here to see how the ‘Optimise’ process can help you drive maximum value in your strategic supplier relationships.
Examples of the types of Complex Supplier Relationships we help you optimise
Some of the Strategic Suppliers we have detailed knowledge of
1 2 eFile
4PS Construction Solutions Ltd
Able CIS – Internet
Accentra Technologies Ltd
Benchmark Software Ltd
Beoley Mill Software Ltd (BMS)
Builder Books Ltd
Business Micro Systems (NI)
Carval Computing Ltd
CIS Management Ltd
Civica UK Ltd
CliP IT Solutions Ltd
Commercial Software Limited
Compact Software Ltd
Consilium Technologies Ltd
Construction Industry Solutions
Construction Management Software Ltd
Datafile Software Ltd
Efile Ready Ltd
Evolve iMS Ltd
Evolved Software Studios Ltd
Forbes Computer Systems
Gabem Management Ltd
IFS UK Ltd
Information Systems Associates Ltd
Integrity Software Systems Ltd
IRIS Software Group
JNC Solutions Ltd
Kalamazoo Security Print Ltd
K Corp Software
Maxima Information Group
My Digital Accounts
Onyx Computer Systems
Optimise Systems Ltd
Payroll Business Solutions
Pegasus Software Ltd
Qtac Solutions Ltd
Payroll Manager (V)
Payroll Bureau (V)
Payroll Specialist (V)
Quality Management Software Ltd
SAA Consultants Ltd
Sage (UK) Ltd
Sapphire Construction Software Ltd
Specialized Application Workshop and Software Mill LLC
Star Computers Ltd
Ty-com Business Systems Ltd
Wealden Computing Services Ltd
Whiz Solutions Ltd
Xero (UK) Ltd
The Behaviours you should expect from a 'Good' Strategic Supplier Relationship
Objectives being met
Critical friend supplier
Inherent commercial trust
Sustained collaboration and innovation
Reduced service cost
High reputation with your peers
Internal team aligned
Services always aligned to outcomes
Flexible/agile contract structure
Evidenced based results
Typical Complex Supplier Relationship hurdles faced in Construction Companies
We’ve dealt with optimising over 500 complex supplier relationships. More than 50% of complex supplier relationships experience misunderstandings between client and supplier over your requirements and expectations.
If the right foundations are not in place to drive maximum value, you may experience:
Additional charges and costs for ‘misunderstood expectations’
A lack of understanding of contractual roles and responsibilities
Governance and performance escalation not clearly delineated
Senior client executives not being clear on their expectations and dynamics of the relationship
Not enough investment by senior executives in the resourcing or skills of the client supplier management team
Loss of key in-house expertise to the supplier (inadvertent staff poaching)
Employee resistance to new working methods from the supplier
Clashes of culture between client and supplier staff and so forth.
Operational challenges faced by Construction Companies
The Construction Industry is a key driver of the economy in the UK and the rest of the developed world. It often ranks in the top 5 of being the largest and most dynamic. In turn with other sectors, the construction industry faces major changes, including:
Skilled Labour Shortage. Increasing numbers of projects means the industry remains heavily dependent on manual labour. An ageing workforce, a lack of younger people joining construction, coupled with strong growth, means good labour is thin on the ground.
Rising Cost of Raw Materials. It’s common to bear the risk of cost changes due to fixed price contracts and speculative home construction. Land and raw material costs can change rapidly. This can leave you with less leverage, and costs adversely impacted between the time the project commences and when it ends.
Slow Invoicing and Payments. Regulating cash flow is often a challenge. Progress payment schedules can help outline what is expected at different phases of the project and determine when each phase of the project is considered complete. Without regular progress payments you can have too many resources tied up in one project, which often adversely impacts cash flow.
Undercapitalisation. It is not uncommon to underestimate capital requirements to pursue the most profitable projects. Working capital is critical to the success of every construction project and companies.
Business Planning. It is critical that you have a clear perspective of your cash and manpower to help you not to overestimate or underestimate your capabilities. You should map out the details of all your project stages to stay on track.
Inappropriate Safety Training. Safety training can be a challenge as demand grows in the industry. Companies can sometimes reduce training as they try to improve profitability, putting them at risk of incurring heavy losses due to increased insurance and litigation costs caused by building non-compliance.
Technology Adoption. Technology has transformed the construction industry. It plays a key role in both day-to-day operations and when competing for projects. Construction technology includes cloud-based software, mobile, wearable, IoT technology and estimating technology.
Uncontrolled Growth. One of the greatest challenges is to plan for foreseeable growth and tracking it so that it doesn’t get out of hand.
High Insurance Costs. Most contractors today pay high premiums for various types of insurance. This includes; general liability for construction delays and defects, and accidents. The ever-increasing insurance costs can be a crippling overhead when competing for work.
Legacy IT Systems. Some state-of-the-art software options have substantial cost-saving potential, if organisations can overcome the internal challenges of the legacy IT systems they use.
What stage are you at in your Strategic Supplier Relationship?
You’re procuring or contracting and you need it to work really well.