Blog 035 - Supply Chain Disappointment

I have taken a big fall from my soap box, I didn’t follow my own advice, I employed an under qualified supplier, wait for it, because they were cheap! Ouch. I lured myself in with all the classic justifications:

The risk is low

We know what they’re like going in

We can use our management skills to keep them on track

We will make sure the contract is watertight

All of the above assumes that the supplier or subcontractor is willing to work to avoid or minimise failure. When you have a party that doesn’t share your vision for the project, traditional methods of contractual leverage or withholding are futile, this supplier is just a transactional machine. When they failed to meet their obligations or sought additional payment for works that were already priced and contracted, their threat to completely withdraw supply made me blink first…. Because I value the service I provide to my client!

This only serves me right; I had a bad feeling from the start but thought I could manage and save a few quid along the way. It further proves that Specialist Contractors are only as good as their supply chain and the same principle applies up the line to the Tier Ones.

It’s important to remember the basics and keep it simple, remembering that:

1. Competency trumps price

2. Pre-Qualification and due diligence matters

3. Alignment of values within your supply chain is worth considerably more than the savings of a low-cost charlatan.

I have re-learned an old lesson the hard way and hope that now, you don’t have to. In a world of Brexit, COVID and protracted payment terms, a robust a reliable supply chain in the pulsing heart of the construction industry, and like your own heart, it should be kept healthy!

If the balance of a relationship in the supply chain begins to shift, act quickly to re-align values or re-evaluate the supply chain members.

If you need help with Supply Chain Management, Pre-Qualification or producing Supply Agreements, drop me an email and we can discuss further.