Operations Expense Reduction For Builders and Construction Firms
How can construction companies cut costs without disrupting the quality of services and goods? Source One’s strategic sourcing and cost reduction services!
Construction companies, real estate developers, and builders are facing unique organizational challenges on smaller, unwavering budgets. A tight commercial credit market has limited the funding available and increased the requirements to get it. A down market has also reduced the number of buyers for properties. Those who do want to buy now have high expectations for quality without paying high costs.
Changing environmental trends and policies have also affected the construction landscape in everything from building design to material availability. Furthermore, new housing trends – such as multi-generational housing and changing building codes as a result from natural disasters – have added complexity to both the residential and commercial building markets. As the landscape continues to develop, construction companies must rise to meet the new challenges in order to remain competitive. This increased activity has led many construction companies to renew their focus on internal cost savings.
Too often, cutting costs is associated with lower quality materials, poor service, and an overall cheaper experience. This doesn’t have to be the case. Source One can help!
Source One’s subject matter expertise in sourcing direct and indirect spend categories helps construction companies increase their efficiency and savings.
Over the past two decades, Source One has developed a broad knowledge base of subject-matter expertise and proven strategic sourcing strategies. We leverage this experience, and our proprietary databases of market intelligence, to completely scour a client’s spend, offering an overview of where spend is allocated and where savings opportunities reside. Our construction sourcing experts then develop targeted, tailored solutions to satisfy a construction company’s unique cost control goals. Differing from many other spend management consultants in the construction industry, Source One’s strategic sourcing team remains with the client after delivering our cost reduction recommendations, working with the construction client’s internal resources to implement initiatives and ensure they produce the projected savings. Additionally, our construction sourcing experts will watch over the category post-implementation to eliminate rogue spend and supplier pricing creep, and to identify future value opportunities.
Advancing long-term strategic cost initiatives and tactical buying practices allow construction companies to improve their present and potential performance metrics. Through standardization, compliance monitoring, supplier relationship management, and careful negotiations, our strategic sourcing experts have helped many construction companies achieve savings that they never thought were possible.
Source One has identified significant savings for construction companies in a variety of their direct and indirect spend categories, including:
- Employment Screenings
- Fuel Cards
- GPS Locators
- Job Scheduling Software
- Heavy Equipment Leasing
- Maintenance Agreements
- Materials and Supplies
- Appliances and Finished Goods
- Office Supplies and Equipment
- Payroll Services
- Security Services
- Temp Labor and Contractor Services
- Tools and Equipment
- Waste Disposal
As many best-in-class construction companies have found, traditional cost savings avenues no longer produce the desired results for success in the current business environment. Source One’s strategic sourcing consultants can develop the most appropriate cost-cutting and value-generating solutions that produce results for our construction clients while maintaining, and often improving quality and service levels. Source One’s catalog of procurement transformation services enhance construction companies’ strategic sourcing practices, refining everything from data collection, to implementation, and offers solutions from change management to supplier consolidation.
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Cost Reduction Services For Construction Companies
Source One’s strategic sourcing team delivers unprecedented insight into MRO market conditions and pricing. To properly manage the MRO spend for a construction firm, a consultant should have a comprehensive understanding of the end-use and purpose of each MRO supply, and the service levels, inventory levels, and lead times needed for each one.
Building specifications is just the start, however, as a company should have ordering controls and an audit system in place – monitoring invoices for price creep and internal maverick buying. A company needs to be able to rationalize purchases within its own business units and leverage spend volume to obtain cost savings. Source One can help!
The telecommunications needs for construction companies are diverse, and often complicated. A team with large portions of office-based and mobile employees, the need for frequent communication between office and remote locations, and high data needs all around can produce unnecessarily high telecommunications bills. Source One can help.
Our roster of telecommunications services ranges from strategic sourcing, to optimization, to management services. In managing the telecom spend of construction firms, Source One routinely delivers bandwidth and service level increases while reducing costs and the management burden.