HOW TO HANDLE SUPPLY CHAIN DELAYS

HOW TO HANDLE SUPPLY CHAIN DELAYS

You’ve signed the contract on your latest asset, lined up a reputable general contractor (ahem, Adivo) and are ready to begin the renovation process.

Then, you receive a call from the GC that some of the supplies needed to perform the renovation are delayed.

This supply chain delay has been happening across the board from appliances to HVACs, to windows, cabinetry and countertops! Thankfully this is something that can be overcome, when certain strategies are put in place.

NO SURPRISES

There is no definitive answer to prevent disruption when it comes to supply delays, but the most important thing is to not be caught by surprise. Knowing ahead of time that there may be lag will help to minimize the impact it has on the project as a whole.

Research to determine if there are any foreseeable delays, such as holidays, that can impact the timeframe to completion. For example, every factory in China shuts down for between two to four weeks in the beginning of February for the Lunar New Year. Baking that two week downtime into the project timeframe on the backend will safeguard the expected completion date.

COMMUNICATION

Things happen. Shipping companies encounter delays in transit. Manufacturers detect a shortage in materials. Communication about the delay, along with an estimate as to when the delivery will occur needs to happen as soon as the delay is found.

By simply opening the lines of communication and defining how the delay will be addressed matters the most.

SOURCE LOCALLY

One of the main reasons why we source materials locally is to avoid any supply chain hiccups one would encounter from overseas supplies.

A perfect example would be why we own and run our US-based cabinet and countertop facility. We know exactly how long it takes to manufacture the contracted items. Self-transporting them via our 18-wheelers ensures that we know when the items will arrive at their final destination. Employing our own staff of installers ensures that the products will be installed properly.

Ordering cabinets, for example, overseas lends itself to possible delays in manufacturing and delivery. Both are out of your control until the items are delivered to your jobsite or warehouse.

EMERGENCY PLAN

Unfortunately, things happen that are out of our control. Be sure to have an emergency plan in place to lessen the blow of delayed deliveries. Deploying workers to a different scope item during the downtime due to the delay, if available, would be ideal.

Identifying backup suppliers is another plausible tactic when preparing for any supply chain disruption.

A contractor with consistent buying power and reputation may have the upper hand over others that do not adhere to brand loyalty.

Building up inventory is yet another tactic, although not the most popular. The initial capital outlay may not be ideal, but does secure the product is available to get the job done.

Have you ever encountered a supply chain disruption? If so, how did you handle it?