Contractors that provide restoration, repair, and construction services need the right materials for their projects.  However, the supply chain for certain raw materials needed to complete these types of projects has been disrupted by various factors caused by the pandemic.  As the supply chain for raw materials continues to stabilize, it is important for contractors to take steps to make their supply chains more efficient and reduce lead times.

When lead times for materials are too long, it can impact the bottom line of your business.  Your customers may not want to wait too long for the job to be completed and for disaster restoration projects, the damage will get worse the longer it takes to start the restoration.  Longer lead times will cause potential customers to turn to another contractor that can get the job done faster.  They may also make recommendations to others for your competitors if they have shorter lead times.

Reducing Lead Times in Your Supply Chain

Fortunately, there are some steps you can take to shorten lead times in your supply chain and meet the needs of your customers much faster.  Shortening your lead times can give you a competitive advantage as your customers will know they can count on you to get the job done quickly.  In this guide, we discuss the steps you can take to help reduce your supply chain lead times and improve your bottom line.

Work with Domestic Suppliers

One way to quickly ensure short lead times is to work with domestic suppliers.  The shipping time alone from foreign countries can take a couple of weeks and working with domestic suppliers will drastically reduce shipping times.  You can cut your lead times even more if you can work with a supplier within your state or local area.

Stop Working with Unreliable Suppliers

If there are specific suppliers you work with who always seem to be late with their deliveries, stop working with them.  The long lead times from these suppliers put you behind which reflects poorly on your business when you have to tell customers that they need to wait longer for the materials to arrive.

Transitioning to a more reliable supplier will save your business more than the cost of making the transition.  Before you change suppliers, make sure you have enough stock of the materials you need in case you go a while without getting new deliveries.

Order More Frequently

Placing a large bulk order may seem like it saves you money, but the longer lead times for bigger orders can cause you to lose projects and devote more resources to inventory management.  Placing smaller orders more frequently will shorten your lead times and help you ensure that you always have the materials needed on hand.

Share Forecasts with Your Suppliers

Make sure your suppliers are aware of your sales and order forecasts, so they know when to expect an order from you.  If your suppliers can anticipate your needs, they will have your order ready to go which means you will get the supplies you need faster.

Use Standard Materials

If your business provides custom services that require specialized materials, then you will need to find a supplier that can provide these specific materials.  If you can do your work effectively with standard materials, it is best to use these materials as they can be produced faster and are often cheaper.  Consider switching to using standard materials if you are not using them already.

Consolidate Suppliers

Working with multiple suppliers can make supply chain management more difficult.  You have to manage multiple purchase orders and you may not always be able to get your orders on time.  Consolidating your suppliers down to one main supplier and one or two backup suppliers will help streamline supply chain management and make it easier to get the orders you need with shorter lead times.

Automate Order Processing

Another factor in your lead times is your in-house procedure for processing orders of raw materials.  More efficient order processing will help shorten lead times.  You should consider the following when evaluating the efficiency of your order processing:

• How quickly are orders entered into your system?
• Does internal miscommunication hold up order processing?
• Do orders ever get lost?

Make sure to address any inefficiencies you find when it comes to order processing and consider automating some of the process if possible.

Give Suppliers an Incentive

If you prefer a shorter lead time than your supplier is offering, offer them an incentive to shorten that time.  The incentive can be an increase in the number of orders you place or a bonus when paying for the order.

Your business can help shorten lead times and maintain customer relations by improving communication with your suppliers, your customers, and within your business.

• Internal communication: When orders for supplies are placed and processed, there may be several employees involved with these processes. It is important to have good communication between your employees to prevent inefficiencies that could lead to delays with the order.  Effective communication will help prevent issues like duplicate orders and slow payment processing.
• Communicate with suppliers: Keeping consistent communication with your suppliers will help them understand your needs and anticipate your orders so they can have them ready faster.
• Communicate with customers: Communicating with your customers does not shorten lead times, but it will help you create realistic expectations for them. Make sure you reach out to your customers to update them on the timeframe for their project as soon as you know when to expect your orders.  Consistent communication with customers has been shown to strengthen customer loyalty.

Lead Generation Services from RestorationMaster

Contractors do not have to keep losing business due to long lead times.  By following the tips outlined above, you can help reduce your lead times which will allow you to serve your customers faster and increase your bottom line.

In addition to lead times for supplies, contractors also have to worry about getting quality leads to grow their business.  However, it can be difficult for contractors to focus on generating good leads when they are involved with daily business operations.  At RestorationMaster, we provide lead generation services for disaster restoration contractors to deliver quality leads and help them increase their sales.  We can generate water damage leads, fire damage leads, and mold remediation leads for contractors from within their preferred service areas.  The leads we provide are exclusive and go directly to your business, so you don’t have to compete with other businesses to close the leads.

You can reach RestorationMaster by calling (888) 846-1992 to learn more about our lead generation services.