By now we have all heard about the supply chain issue. It affects everything from items on the store shelves to material for manufacturing. The construction industry is no exception. However, shortages do not change the fact that construction and fabrication providers must fulfill customer requirements. At Fi•CON Construction and Fabrication, we have put in place several practices to help alleviate the problem to continue to serve our customers. The following are some of those practices:
FI•CON Supply Chain Shortages Solutions
- Fist of all, we have diversified our key supplier base to 3 – 4 top suppliers that can provide material reliably.
- By improving our project planning process and customer communication, we can work around project deadlines, material availability, and our fabrication time more effectively.
- Our project managers segment our orders by lead time and priority, allowing us to plan orders several months in advance.
- We engage the customer early in the process as well as our various suppliers to expedite material take-off and ordering of required supplies.
- With the modifications of our commercial terms to mitigate shortage. These changes include:
- Requiring advance payments or early progress payments to secure all key raw materials to avoid cash flow crunches that further disrupt the supply chain.
- Establish price escalators based on changes in raw materials cost.
- Reducing the shelf life of our quotes to avoid cost change surprises for our customers.
- We work with customers to offer materials substitutes where possible.
Despite the continuing issues we face, FI•CON has proven itself to be a reliable construction and fabrication partner to our customers. We focus on being flexible to offer solutions to a changing and challenging industry. Our combination fabrication and construction services, means we have the experience to tailor projects to each customer’s needs. Contact our experienced team today to discuss your next project at ficonusa.com or (386) 364-7647.