Managing materials in capital projects is no small feat. Site managers and project teams often face a myriad of challenges that can jeopardize timelines, hinder progress and inflate costs. While the ultimate goal is to resolve these issues, it’s essential first to recognize and understand the problems that arise in material tracking and logistics. Here are some of the most common issues based on our experience in capital projects material management on site, along with insights from professionals in the field.
1. Inefficient Communication and Collaboration with Multiple Suppliers
When managing hundreds or even thousands of suppliers, collaboration inefficiencies become pronounced, resulting in significant delays and cost overruns. Schedules within the supplier network are often not adhered to, and changes are not updated in the systems. Feedback is frequently given informally over the phone or not at all.
“Currently, a considerable amount of time is spent on tracking information about orders between parties.”
2. Lack of Visibility
One of the biggest challenges in material management is the lack of visibility into the status of the purchase orders and location of materials. This can lead to delays as teams spend time expediting and searching for materials or waiting for updates. Without real-time information, it’s difficult to make proactive decisions, which can affect project timelines and budgets.
“Access to information related to shipments is lacking, and delivery transparency is missing.”
3. Inspection of Products Upon Receiving
A crucial aspect of material management is the inspection of products upon arrival to site. Identification of materials is challenging when using external suppliers. Ensuring materials meet purchase order requirements and quality standards before use is vital to avoid project delays and additional costs.
“The challenge lies in conducting a thorough visual inspection for each shipment during the receiving phase.”
4. Difficulty in Locating Materials and Lost Materials
On large construction sites, locating specific materials can be a significant challenge. Misplaced or lost materials can cause project delays and increase costs, especially if materials need to be reordered.
“Managing the unloading schedule, necessary unloading equipment not available in a timely manner.”
5. Handling Material Deviations
Materials can be damaged during transportation or items don’t meet the purchase order requirements, leading to quality issues that can affect the final project. Identifying and addressing these issues promptly is crucial to maintaining project quality and timelines.
“No resources or capability to perform systematic receiving inspections for shipments.”
6. Inaccurate Inventory Management
Inaccurate inventory records can lead to overstocking or understocking of materials, both of which can be costly. Overstocking ties up capital and space, while understocking can cause delays and rush orders, which are usually more expensive.
“Storage facilities are often small and inadequate, outdoor storages.”
“Finding and obtaining products on time during the installation phase.”
7. Manual Processes and Paperwork, No System in Place
Manual processes and paperwork are prone to errors and inefficiencies. They can also slow down operations as data needs to be manually entered and processed. This can lead to delays and increased labour costs.
“Common communication types are missing, and file formats are not standardized.”
Conclusion
Material tracking and management are critical aspects of capital projects, and the challenges associated with them can significantly impact project success. By understanding these challenges and implementing effective strategies and technologies, site managers can improve efficiency, reduce costs, and ensure timely project completion. It’s clear that having a robust material management system in place is not just beneficial but essential for overcoming these challenges and achieving project goals.
Want to discover how LogiNets MHS software can help you overcome these materials management challenges in capital projects? Get in touch!
Erika Similä
Sales and Marketing
MHS
erika.simila@loginets.com
+358 40 934 5189
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