| Iqbal Bahia, logistics director for SFS intec Fastening Systems explores why focusing on the small things can make a big difference to the success of your business.
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For many fabricators and installers, it is usually the little things that cause the biggest headaches. Businesses large and small will often find that a disproportionate amount of time is spent looking after products and services which, although crucial, make only a small overall contribution to the cost of the finished product.
Nowhere is this more apparent than with fasteners and consumables. Management of fasteners, hinges and other so called ‘C’ parts is often a nightmare for fabricators, with potentially thousands of product lines required at one time or another including basics like drill bits, hand tools and glue.
The cost of ‘C’ parts to the fabricator can typically be only around 20% of total expenditure, yet for smaller fabricators it may account for 80% of the total time spent ordering. Incredibly though, how these products are supplied, stocked and managed is often overlooked in the hustle and bustle of a busy working day.
Without having a ready supply of all the components required to manufacture doors and windows, production becomes inefficient and therefore costly. That applies to everyone, whether you are a trade fabricator making 1000 units a week or a small company producing a fraction of that amount. Often though, the focus will be on the larger items such as PVC-U profile or glass units, leaving the smaller but equally vital products to chance.
Bringing order
Your stock room may look in order, at least in a way that you or your key staff understand. But what happens when new personnel join or when those who know how the stock room works are not around, and is it optimised?
If this sounds familiar, you may need to assess how your stock room or warehouse is arranged and identify how things could be improved. Introducing simple systems that everyone understands will ensure that processes can be followed carefully and that stock is maintained at the optimum level.
Too much stock can cause problems - as well as running out - so understand how components are ordered currently and see how this could be improved. Achieving the right balance is particularly significant for those fabricators who have moved to ‘just in time’ manufacturing or for those who have limited warehouse space.
Let the technology do the work
As in most walks of life, advances in new technology have made ordering components significantly easier without neglecting more traditional ways of working. For example, SFS intec can take orders via fax or email, automatically translating these into an electronic order which more quickly produce order confirmations. These confirmations, delivery notes and invoices can now be sent to you electronically, eliminating postage costs and delays. This allows all fabricators to benefit from new technology even if they prefer to use their own tried and tested methods.
Electronic replenishment of stock is also now available to smaller companies after being the domain of bigger business for many years. This takes stock ordering to a whole new level as stores managers can simply scan the barcode on the side of the box. The handset is then docked into a download port (supplied with the handset) to allow the order to be sent electronically over a standard telephone line. A pre-defined quantity is then despatched.
Online ordering is another option for easier ordering. Services like SFS intec’s e-shop enable fabricators to place orders online and check details of previous orders 24 hours a day, 365 days a year. So even if you find yourself working late into the evening or at weekends, managing stock and placing an order is easy.
These types of solutions make the stock control and ordering process more efficient, reliable and make a genuine contribution to improving profitability for fabricators. But surely all this comes at a premium, doesn’t it?
Taking out the cost
The real cost of fasteners, hinges and consumables is not how much you pay per unit. It is the unit cost plus the process costs involved.
Consider the scenario of a fabricator running out of fasteners during production. How much does the production downtime actually cost? You still have to pay everyone’s wages while they wait around until production can resume as well as all your other overheads. Then the unit cost of any stopgap fasteners is probably going to be higher than it would be from your usual supplier.
This disrupted process has then become relatively expensive which means the true cost of the components has increased, not to mention your production manager’s stress level.
A poorly managed stock room will also push up component unit costs. If a box of fasteners is ordered and then mislaid – lost indefinitely – another box will need to be ordered, effectively doubling the unit cost of each fastener.
Working smarter
Taking greater control of the supply chain is an excellent way for fabricators to improve profitability. The most important step is taking time to look at the situation and decide where action is required. The best results may well be achieved by bringing in a fresh pair of eyes which is why SFS intec has launched a new consultancy service for fabricators.
No two businesses are exactly the same, so by offering a range of technologies SFS intec is equipped to help fabricators achieve the ultimate goals of improving customer service and profitability.
For further media information please contact:
Alan Markham or Gemma Rutherford
The Partners Group
105 The Mount
York YO24 1GY
Tel: 01904 610077
Fax: 01904 641646
Email: alan@partners-group.co.uk
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RC & I Advice Column February
February 2008
E-solutions revolutionise the construction industry
By Colin Yeates, SFS intec
E-commerce, e-business and e-technology are buzzwords not usually associated with the construction industry. But a new landscape is emerging which will see not only specifiers and architects reaching for the laptop, but the roofing contractor also. Colin Yeates takes a look at the new technologies, including podcasts which are taking the roofing industry by storm
Technological advancements in wireless internet, Blackberry and mobile communications have made the web and other tools more accessible for the construction industry. Traditionally seen as non-PC users, contractors are increasingly moving to be more frequent web users as these developments make access from the building site quicker and easier.
Manufacturers have also been quick to react to this changing landscape to communicate more effectively with the end-user and also to provide cost-effective and efficient solutions to their customers throughout the supply chain.
This new technological era is being driven, on the one hand, by contractors and specifiers using the power of search engines to source not only products, but also corresponding installation guidance. Equally, the growing pressure for cost efficiencies throughout the supply chain has been met by simple innovations such as SMS text messaging to confirm time of deliveries.
Skills support
These days all roofing and cladding has got to perform to a far higher standard, and that means the way it’s installed as well as how the different materials work. Yes, you need ever increasing thicknesses of insulation for built up and composite panels, but their performance is devalued if they are not installed to the same high standard as they were manufactured and engineered.
So there is technical pressure on the roofer and cladder to perform, and a tremendous commercial pressure to meet tighter contract margins. The emphasis has to be on speed of work with lean teams of installers who need to be aware of all the technical aspects of the systems they are installing. As this cannot always be anticipated in advance, new technologies for onsite support have been developed, bringing the training and technical support direct to the contractor onsite through e-solutions.
We know that installers’ skills onsite are under the spotlight more than ever due to increasing regulation standards and tougher air tightness requirements as highlighted by the 2007 independent market survey ‘Not Just Hot Air*’ (commissioned by SFS intec).
The need to maintain the flow of information and training opportunities for the roofing contractor has never been more crucial as the demands on time and quality are not going to go away. At the same time, the commercial pressures on the other parts of the contracting firms - procurement and supply, design and work flow etc. - also need support, so they can perform with efficiency and economy.
Luckily, a new solution is at hand, or should we say on the lap or in the pocket.
Roof-top surfing
The potential for internet-based solutions have been available for a few years, and our recent experience has shown that there is a sudden upsurge in realisation of what is available and possible.
The latest innovation in technology to be leveraged by leading manufacturers is the podcast. The need for immediate and accessible training and technical information whilst on site has led to the production of website-based podcasts. Links through laptops and wifi mobiles is transforming the Monday morning site briefing as contractors and installers can instantly view/download the latest training tutorial or demo for the products they are about to use. Customers no longer need to be in the training room or face to face to provide on-hand support.
Website-based podcasts giving guidance and visual demonstrations of specific fixing techniques mean that delays in starting on something new or waiting for a rep to turn up on site for a demo could be relegated to the past.
e-logistical
And the technologoical developments don’t stop there. The same level of e-support is available for the rest of the contracting firm, as well. From on-site delivery notification to automatic order digitisation, core stock control and barcode generated low stock replacement, you can concentrate on revenue generating parts of your business with the logistics side efficiently managed.
For example, when you are waiting on site for a parts delivery, SMS texting can warn you of the delivery time in advance, or tell you where it was made and who accepted it. This means no more delays to a job while wandering round a large site trying to locate a parcel that has been misdirected.
E-controlled stock management solutions have been proven in real-life, real-time situations to deliver efficiency, time and cost savings for contractors. They allow the manufacturer to make up packages of fasteners and accessories to be delivered to site with roofing sheets, cladding or insulation, instead of holding stock and picking and packing each order separately.
Another clever solution is instant digital inputting of orders whether they have been faxed, phoned or mailed in. Through e-solutions, high procurement costs, inefficient warehouse processes and supply chain delays can be eliminated and replaced with tailored solutions and order tracking.
The power of the internet and web-enabled technologies has not only been recognised but is being implemented more and more through every level of the supply chain. Contractors and installers are reaping the benefits of these new e-solutions, which are not only making their jobs more efficient but are generating a more cost-effective supply chain.
To explore some of the growing possibilities for e-support for the roofing and cladding contractor, visit www.sfsintec.biz/UK
*The Spring 2007 market survey (‘Not Just Hot Air’) was commissioned by SFS intec to unveil the current thinking of roofing and cladding contractors and architects about the Building Regulations Part L2 (2006), in association with BSRIA, the Metal Cladding and Roofing Manufacturer’s Association (MCRMA) and the National Federation of Roofing Contractors (NFRC).
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