As the house building market continues to grow, house builders are faced with a number of challenges associated with delivering more projects. These include managing higher volumes of supplier transactions, as well as potentially dealing with a broader range of sub-contractors.
Companies such as Bewley Homes are now taking advantage of technology solutions that have been specifically designed to address the following challenges facing house builders:
Higher volumes of transactions
Growth in business, along with an increase in the number of projects being delivered, inevitably results in a significant rise in transactions with suppliers and sub-contractors. An average-sized house builder might find themselves receiving over 300,000 invoices per annum.
Experience shows that managing these transactions using traditional paper-based methods can cause delays and increase the risk of errors. In parallel, searching through vast archives of paper documents can consume a great deal of time and does not support timely decision-making.
These challenges can be addressed using e-Invoicing solutions that integrate with your own back-office system and enable automated validation of invoices against POs, so that manual matching is virtually eliminated. The systems also ensure that key management data is readily accessible.
House builders often find themselves dealing with demanding supply chains, over-stretched sub-contractors, and margins that are being eroded by price increases that result from demand exceeding availability.
The enhanced visibility provided by e-Invoicing solutions helps to ensure compliance with approved contracts and early payment, thus providing maximum leverage for buyers and QS teams. Early settlement will often result in significant discounts that help to maintain margins and profitability.
As the volume of work increases there is often a growing dependency on sub-contractors to provide key skill sets that are not available in-house. This is clearly an efficient strategy that helps to maintain sensible overheads. However, it must be combined with effective compliance management of the sub-contractors being used.
Online supply chain management software systems help to improve the management of vendors and PQQs, as well as reducing the risk of accrediting and managing the supply chain.
The Tradex e-Invoicing platform hosts the largest business trading community in the UK construction sector, with more than 35,000 companies trading 5.5 million electronic documents per year. It is flexible, easy to deploy and delivers significant cost reductions as well as underpinning efficient management of transaction data. Causeway’s Supplier Management solution reduces the administrative effort required to operate a compliant supplier database by automating the capture and updating of supply information. It also enables continual measurement of supplier performance across all projects.
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