The Comprehensive Supply Chain
Innovative Practices Improve the Homebuilding Process
by Carlos Guilherme
In a constantly evolving housing market, the most valuable resources for homebuilders will include services that enable them to adapt more quickly while helping to lessen the burden of construction planning and logistics. Today's environment of intense competition also requires builders to continuously seek opportunities to align themselves with the latest home buyer trends and incorporate new products and services that maximize profitability.
To meet these needs, homebuilders are increasingly demanding that their building materials dealers and product manufacturers work more closely with them throughout the home building process-from design through product specification, installation and construction. Focusing on selling and shipping products is no longer enough to satisfy builder demands.
As homebuilders are squeezed by numerous challenges ranging from a soft market to financing shortages, they are also seeking greater efficiency up and down the channel. Forward-thinking dealers and building material suppliers are engaging builders with new products and services that go beyond the traditional roles of manufacturer/supplier and dealer. These new solutions for builders involve innovative, comprehensive practices at each stage in the supply chain.
The Builder-Dealer-Manufacturer Connection
Supply chain collaboration is more critical than ever as margins have become tighter. Providing more efficient ordering, delivery and solutions as well as fast and simple access to materials are key builder services that enhance the supply chain. Streamlined ordering and distribution of multiple products is one benefit that suppliers and dealers are offering to builders. Helping builders optimize the use of products is also increasingly important.
The current housing slump provides homebuilders with an opportunity to re-examine their material procurement processes and services with an eye toward boosting efficiency and profits. Dealers and suppliers can play a critical role by working with them to obtain building materials more quickly and efficiently. Working with suppliers who offer a wide range of products, along with the expertise and support to tie them all together, can make business easier and help improve builders' bottom lines.
Access to Technology
Advances in technology continue to improve the way homes are built. Throughout the supply chain, building material dealers, suppliers and homebuilders are using software, services and improved building practices to construct new homes better, faster and more economically. These new technologies include specialty software tools available to dealers to better plan, design and estimate for builders the costs and performance of materials. The result is reduced risk of costly on-site changes to plans, fewer errors and fewer callbacks.
In addition to design and estimating software, builders are taking advantage of professional dealers' expanding levels of service, including the options of pre-cut materials and pre-built components. Advanced scheduling programs and tools made possible by modern technology also help ensure that materials are staged and sequenced for delivery to the jobsite when they are needed-critical to helping builders keep projects on time and within budget.
Instead of bringing such technologies in house, builders of all sizes-whether custom, independent or production builders-are choosing to rely on dealers that provide these services. This approach eliminates the need for extra staff, overhead and investment in software or fabrication equipment.
More Efficient Building Practices
To improve efficiency and profitability, builders are aligning themselves with dealers and suppliers that can provide consultation on finishing materials and appliances, as well as the fabrication and installation of major building components. As with many areas of business, outsourcing of significant portions of the building process can improve efficiencies, whether from economies of scale or from reliance on those with specialized expertise.
One example of how builders, dealers and manufacturers are coordinating more closely in homebuilding is the design and construction of the structural frame. Framing materials account for a substantial volume of materials used in homes and, as such, offer an area of opportunity to greatly improve the overall efficiency of construction.
Many builders are now taking advantage of dealer offerings supported by supplier products and services to optimize the structural frame. Such offerings include design software, pre-cut bundled and labeled materials and pre-built framing components. These products and services achieve a whole-house solution to structural framing-integrated design, production, distribution and installation processes for walls, floors and roofs, working together as a cohesive system.
Instead of the builder having to cut framing materials to size, the dealer makes the cuts from a range of available inventory, which reduces jobsite labor and material waste as well as disposal fees. Pre-cut materials can be delivered in labeled kits for fast and simple installation. Or, for builders who want to outsource a greater portion of the frame building process, pre-built floor and wall sections can be ordered and, in some cases, installed by the dealer for a true turnkey approach to framing.
In an uncertain housing market, homebuilders are increasingly looking to dealers and suppliers to be partners with them in the homebuilding process. Dealers and suppliers are being asked to help improve material efficiencies, reduce jobsite waste and speed construction, ultimately assisting the builder to be more competitive. Innovation in the way product manufacturers and dealers support builders will become more important as builders look to seize available opportunities in the down market that will help them position themselves for opportunities as the market recovers. The end result of increased building material supply chain integration is the potential for more efficient and more profitable construction for builders.
Carlos Guilherme is Vice President of Sales for iLevel by Weyerhaeuser and is responsible for overseeing all sales activities for iLevel products and services, including Trus Joist engineered wood products, Structurwood oriented strand board (OSB) and other specialty framing materials.
888.453.8358
www.iLevel.com
Key Components of the Integrated Supply Chain
- More efficient ordering and delivery of multiple products
- Fast, easy access to materials
- Value-added expertise and support
- Technology that improves planning, design, cost estimates and performance
- Pre-manufactured and installed components for major building systems
