Piloting Through The Supply Chain Crisis
Guest Blogger: David Klein, President | Greenwood Industries
2022 has proven to be one of the most challenging years our industry has faced in decades. Like many in the construction industry, Greenwood has weathered the Great Recession and the COVID lockdowns, but the supply chain crisis continues to fundamentally influence how we do business. Costs are skyrocketing, and we are seeing greater than six-month wait times for material that previously took six days. However, over the past 30 years, I’ve learned that whenever there is a challenge, there is also opportunity in decisive action. As such, we have taken steps to ensure our customers’ projects are kept on time and budget.
Investment. As we began to sense the challenges to the global supply chain, Greenwood made a strategic decision to significantly increase its inventory. This is very different from what we had done in the past, working within a “just-in-time” delivery method. “Just-in-time” is ideal for normal conditions – you purchase and deliver material where and when you need it. Right now, “just-in-time” would mean that we might not see material until later in 2023. However, that doesn’t mean that there isn’t material out there. If I see material available that I know we will need in the next six months, it only makes sense to buy it now. In taking that risk, we’ve avoided some inevitable price increases, and ultimately, we’ve avoided losing some substantial jobs because we’ve had the material in-house ready to roll out.
Logistics. Of course, we’ve had to consider our logistical capacity with increased material. Greenwood has added significant warehouse space to accommodate our ability to procure and hold project materials. This shift in planning has encouraged our purchasing managers, executive staff, warehouse personnel, and project managers to collaborate and learn new processes. And, ultimately, our communication is better for it.
Creativity. Sales teams in every industry have a common refrain: Customers have so much information that it can make it hard to “sell” them. Customers often want things a specific way, which is their right; however, it may not always be the best way to complete a project. With the supply chain crunch, all sides need to be flexible and understand global constraints. Our teams have been super creative and diligent about finding ways to do a project to the same high standards but with different materials. It’s about being creative and helping customers understand that our decades of experience will ensure we complete the job the right way.
And, we aren’t stopping there. Greenwood Roof Services, our professional maintenance and service division, has recently launched an innovative roof restoration program with a customizable warranty. These restorations are a cost-effective, timely alternative to re-roofs for customers when they are priced out of the market or unable to wait out the lengthy supply-chain delays. Ultimately, we must continue to innovate and remain flexible to the challenges presented in this ever-changing industry!
