Supply chain integration is key

I joined the timber frame sector in January and it became apparent very quickly that the industry needs to integrate more fully with its members, both up and down the supply chain.

Having spent 12 years with Constructing Excellence, the government body created following the 1998 Rethinking Construction Report, I have seen enough evidence to suggest that only through the true integration of the supply chain can the industry begin to reduce costs for the end user client without merely cutting prices in a bidding war.

History suggests that ‘lowest price’ hardly ever means lowest ‘outturn costs’ and therefore the client always suffers. The word that is always missing throughout the UK construction industry is ‘trust’ – there is duplication of effort at every interface of the supply chain as each company checks what it has received from the previous supply chain member.

Furthermore, as each company in the supply chain is not confident of winning the order and is usually brought in as close to order placement as possible to ‘keep them keen’ there is no time for it to use its knowledge and experience to bring innovation and value to the client. The earlier a supply chain member is included the less expensive any change in design will be and the more impact it will have on the overall value of the building.

Culture change is always difficult and needs some early ‘champions’ to make it happen. We have set up a UKTFA Academy with money from Proskills and expertise from the Collaborative Working Academy to make a start in helping UKTFA members obtain the knowledge to try to break down the traditional barriers and be able to offer cost-effective solutions that will win them work without having to rely on a price war. It has happened in other areas of construction (although not in house-building) and we see no reason why, given time, it shouldn’t happen in our sector. Delegates will receive Level 5 (degree level) qualifications in Collaboration & Integration in Construction which will give them a business advantage if the government strategy of lower carbon and lower cost through collaboration and integration is achieved.

TTJ Industry Updates are a forum for trade bodies to address key issues.