Jun 19 2007 6:48AM | Permalink | Email this | Comments (2) |
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Last week Builder Partnerships held its second Builder/Manufacturer roundtable in Denver.  This is a semi-annual event where our builder members and manufacturer associates sit around the table for 1-1/2 days to discuss mutual issues, obstacles and opportunities.  The discussion ranged from how builders make buying decisions to the role of the purchasing manager in the builder decision-making process.  But the one subject that had the most discussion was that of “managing the supply chain”.

I was somewhat surprised to learn that the manufacturers really need to step up and do a better job of working with and managing their respective distributors and contractors.  A great example of this issue came from one of the builders who said that he received three bids on an exterior architectural system and the bids were $150 apart and the crazy thing was that they all bid the same manufacturer’s product.  In another situation, a builder was never made aware that the manufacturer had a special marketing promotion on its product.  It seems that the distributor forgot to mention it.  This really bothered the manufacturer since they invested valuable resources in developing the program and in training the distributor sales personnel

I could provide you with additional examples of how the supply chain breaks down but I won’t.  The real challenge is for the manufacturer and the builder to engage in a real and consistent dialogue on an on-going basis to identify issues and opportunities regarding the supply chain.  Once these are identified the manufacturer can develop and implement strategies that include distributors and trade contractors to ensure that everyone throughout the chain is delivering value in terms of service, quality, pricing and programs.  Manufacturers must find a way to allocate their internal and external resources to ensure that they have their finger on the pulse of the home builders changing needs so that they can provide solutions to problems, issues and opportunities.