Transformation or Impact in Construction Procurement Processes

2023-01-06 #Construction Technologies

Transformation, circularity, impact and value are the most talked about concepts these days... So why are they being talked about a lot these days, but not until a few years ago?

What has changed or changed direction? What has been done up to now was wrong? Each situation contains accuracy in its own time. But does it always contain its own truth?

These questions can be multiplied, but the conclusion is the full reality of today. The supply chain was involved with the most popular and painful period of recent times. We are in a process where the supply chain is being constructed and even reshaped. In this way, it can be a result output with value generation and impact creation.

 The chain forms a circle and through this circular movements we have always perceived this cycle in a different way. It is a big circle that is difficult to break, so it is actually a border. You have built your own network with your suppliers and built your wall against external factors. But it entered such a transformation process that this circle broke at its weakest point and this weakness was reflected in the whole chain. Now the transformation has seeped into the circle and these circles now need each other more and more, so they have gained the ability to circulate.

 In the end, a different but stronger supply chain than before begins to emerge. As they say, "What doesn't kill you makes you stronger!" And where does this strength come from? Resilience, competence, flexibility? Today, we are observing a transition to a new era in the supply chain with the ability to resist all kinds of impacts and create agile strategies. If a supplier has commercial and technical performance competence, it can manage the necessary process in an agile way without the need for support. When faced with a marginal demand, it shows a new performance in the market with a new solution, or it can take a position against new competitors with its capabilities in line with the demands of a new market. Therefore, how can such a supplier be found or is it easily accessible?

Value chain, Transformation, contech, agile construction, Demet Demirer, supply, impact, cycle1

Today, most decision makers are struggling to access qualified suppliers. This is because the stronger the supplier becomes, the more it moves away from a new decision maker because it is now in a cyclical process and no longer prefers the risk of a new decision maker. The value it creates turns into an impact on the decision maker, and this is actually the biggest differentiator for a supplier and it wants this to continue. In this case, it is actually a great opportunity for other suppliers in the market to gain new decision makers, but the biggest competitive factor is to make a difference. So how can this difference be made?

 Suppliers that make a difference in the construction industry today have priorities; a patented product, environmentally friendly certified product/service, social responsibility projects, low carbon emissions target achievements, etc.... Why does all of this make a difference? If the service you provide and the production you make enable you to create a new value chain with your decision maker, i.e. your employer, it means that you have now achieved circularity in transformation and you have already started to create a circle of influence.In the construction industry, you can only create a circular supply chain with suppliers that overlap with the output of your project, that is, the value you want to create and the impact you want to give to the environment. Because both sides take power from each other and want to get results with the same goal. At this point, a correct match is required. In other words, the product and/or service you gave and the quality of the product and service produced must be the same. The detailed description of the need and the selection of the product/service provider to meet this need should be made with a detailed study.

Value chain, Transformation, contech, agile construction, Demet Demirer, supply, impact, cycle

From the location where the relevant demand is found, the project's designer, financier, investor, type, and employer constitute the project’s target values. In order to successfully realize these target values, it is necessary to provide a solution with a team, ie. a supply chain. It is necessary to create product/service providers that provide competence for the size, technical and administrative conditions of the relevant scope of need, ie. value scopes. At this point, the totality of values results in an impact on the project output.

The output of digitalization, sustainability, value chain and transformation concepts in procurement is impact. These impact values determine all of your procurement processes and methods. If your impact is to make a difference, the supply chain is differentiated. Your source for this differentiation should be new instruments with this impact value.If your paths don't cross, there are bound to be those that do.