Reengineering the Supply Chain for Lean Construction Outcomes
Due to the pandemic, global supply chains have faced unprecedented logistical challenges. While the construction sector has definitely felt the squeeze, we must acknowledge that the pandemic has merely highlighted and exacerbated the problems that already exist within our supply chain.
Over the past five years, construction inflation has risen sharply – roughly three times the general inflation rate. Billions are needlessly spent annually on design, building and operations inefficiencies, not to mention utility expenses and maintenance.
Construction waste and rising costs in the built environment are preventing the ingenuity, advancements and investments that are needed to create change. These wasted costs are culminating in an affordability crisis that is completely avoidable, and it limits the investment needed to balance the natural and built environment. It also worsens the equity crisis, impacting historically marginalized communities who would greatly benefit from cost effective and high-performing buildings.
We stand accountable to drive vertical and horizontal integration, reduce costs, increase efficiencies and deliver more value to our clients. We are at the forefront of innovation, tackling the waste that plagues the built environment and charting the course for an equitable, zero-carbon future.
So, How Do We Disrupt the Existing Supply Chain?
Our Action for Impact plan challenges us to reengineer the supply chain and the ways we work to lower costs, eliminate waste and drive better outcomes through a manufacturing mindset. We will ensure each link in the supply chain is optimized, necessary and at the lowest total cost.
We will:
- BE LEAN. Drive down client costs through strategic purchasing plans. Harness enterprise-level buying power. Improve spend forecasting, manufacturing strategies and site-based supply chain plans. Design on standards that facilitate strategic purchasing goals and eliminate confusion and rework in the build phase.
- BE RESILIENT. Drive waste out of our supply chain. Measure carbon footprints and advance carbon reduction goals. Carefully analyze every step in the supply chain process from administrative to the physical movement of people and material. Eliminate steps, automate processes and reorganize supply chain activities to create efficiency and lower costs.
- DELIVER EQUITY. Champion social responsibility within our business and across the industry. Build a durable diverse participation program that directly benefits minority-owned, women-owned and other disadvantaged business enterprises. Insist on equitable business practices across our supply chain and subcontracting pool.
We are excited to see what we can accomplish with our partners and clients in order to reduce costs, eliminate waste and deliver world-class facilities that contribute to a thriving and equitable planet. Join our movement and take #ActionForImpact.
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