Even today, 90 percent of procurement teams measure effectiveness by pure-play cost savings, which for a product or service is traditionally calculated as old price minus new price, multiplied by the volume.
Profitable construction projects are the result of a successful blend of labor, material, and equipment management. Too often, contractors concentrate exclusively on labor or cost reduction and overlook the opportunity for improvement by implementing material management strategies.
Did you know that only about 42 percent of the time on a job site is productive work? The rest of that time is waste. Identifying these areas of waste and reducing labor by just 5 percent has the ability to double a contractor’s profitability.
Commercial contractors are always looking for ways their projects can be done efficiently and at the lowest cost. Using prefabricated electrical systems from a distributor is one way to do that. With the help of a distributor, commercial contractors can reduce labor costs and deliver cost-effective electrical systems.
Imagine this – you’re working on a factory floor. Small debris is floating through the air, so as you start your shift, you reach for your safety glasses. Bad news, they’re not where they should be. You can’t start work without your glasses, so you let your manager know.
Efficiency on a lighting project is critical to profitability. Contractors seek ways to save time and money — particularly on labor costs — to ensure maximum profitability from every job. While lighting installations come with their own set of challenges, properly managing material can save time and ultimately increase job profitability.
Lean manufacturing is a common practice within manufacturing processes that systemically reduces waste and cost while increasing efficiency. While the primary focus of Lean is the production floor, many of the same principles extend beyond to the warehouse. For example, storage of raw materials, subcomponents and finished products is a necessary function for most businesses, however if those tasks are not properly managed they can quickly eat away at profits and compromise customer service.
In the days leading up to making landfall in Florida on September 10, Hurricane Irma was already making history as one of the largest, strongest, and most devastating storms ever recorded. WESCO’s Utility Group recognized that it would take an all-hands-on-deck approach for its Florida utility customers to restore power to millions of people when the storm was over.
Take a moment and think about the supply bins you have within your warehouse or on a job site. You may have a technician periodically check your bin inventory levels. When items are running low, that technician goes into the warehouse or truck and replenishes the bin.
Imagine a cluttered storeroom with scattered parts in mismatched bins. Nothing is labeled and nothing is organized. Can you imagine how difficult it will be to find the exact part you need, let alone to find that component quickly? A possible solution to organize your facility — and cut down on SKUs — is to implement a kitting program.
In some industries, things are relatively stable from year to year. While manufacturing was done in much the same way for many years, emerging trends promise to change that. An original equipment manufacturer (OEM) must be resourceful and search for opportunities to stay competitive in an increasingly volatile market. While there may be challenges ahead, applying industry best practices will help any manufacturer operate at the top of their game.