Time. Is. Money.
It’s been said so often that’s it’s almost impossible to hear anymore without simply nodding automatically and going on to think about other concerns or address other problems. But at the risk of being redundant, let’s phrase it another way:
Saving money — and realizing profit — depends to a large extent on how efficiently you control your cycle time and manage your product deliveries.
Did we get you to sit up and pay attention?
Technology Comes Home
As home building becomes more sophisticated, it is more important than ever to use technology tools to manage materials selection, ordering, scheduling and client options. It’s apparent in many aspects of the business, but nowhere is it more obvious than in the realm of lighting design and customization. In addition, the entire process is complicated by the number of people and trades involved.
We can use a simple recessed can as an example: It’s easy to specify, simple to install, a desirable design feature and on the “want list” for the majority of clients. But consider the variables, not only of brands, but in size, trim details, purpose, and bulb wattage, to name just a few. Each difference can affect ordering procedures and delivery schedules. And, once again, penny differences in cost add up to dollars. Multiply those dollars by hundreds and you can see how the ripple effect quickly spirals out of control. An easily managed bill of materials can make a huge difference.
Then, look at delivery schedules. Think about how a single day of delay could throw off an entire week. Alternatively, think about the financial effect of having to pay overnight delivery charges to stay on schedule; or consider what effect a last-minute brand substitution might have on your completion date. Finally, weigh all those considerations against client reactions when the unexpected occurs and the house is not completed exactly as ordered.
Implementing Workable Efficiencies
It’s not enough to simply order materials and hope that they arrive when you need them. Home cycle time reduction can be vital.
You must pay attention to every board foot of lumber, to every nut and bolt, to the operating hours of your machinery, and the health and happiness of your crews. You must find efficient and effective ways to select specific materials from specific suppliers in order to save both time and money, meet your quality criteria and please the client.
It’s a tall order, and one that can get away from you if you don’t have reliable tracking systems and comprehensive controls.
In construction, the way you set up and manage BOM has a direct effect on profitability. Even though you might not immediately recognize the variables as you glance at a project spreadsheet, the relationships between product selection and delivery time are direct reflections on your ability to squeeze value out of every option and each decision.
Benefits of a Partnership with Aterra Designs
At Aterra, our technology-based comprehensive system monitors, tracks and standardizes selection and ordering options for production builders, and keeps everyone in the loop throughout the process. We believe that the relationship between BOM management and cycle time is strengthened. In addition, we continually strive to refine and improve our technology.
The bottom line is that we love what we do, and we never stop seeking ways to perform better and more efficiently. We have great relationships, based on performance, with architects and designers, home owners, builders and electrical contractors, and with our lighting and home automation manufacturers. We know we offer great value.
Why not contact us to explore the ways we can help to simplify your BOM, reduce your cycle time, ensure satisfied clients and increase your bottom line? We have learned the lesson well.
Time is money!