Construction Industry Supply Chain Priorities: Amazon Focuses on Shipping

Construction Industry Supply

It’s sad when a company has to back off expansion plans because of an economic slump. Amazon, after acquiring enough acreage to form a small country, is now slowing down construction on planned fulfillment centers.

Before you say, “Aww…poor Jeff,” here’s the scoop. E-commerce customer purchasing is increasing so rapidly that Amazon has chosen to focus on another facet of its supply chain plan: fast, dependable product delivery.

Warehousing and storage solutions are significant to Amazon’s ability to provide superior customer service. Amazon increased fulfillment center developments by 30% in 2021. But fast delivery is the growth driver in e-commerce. Shipping speed must be commensurate with customer expectations. They already experience fast product research, selection, one-click purchasing, and checkout. Delivery and customer satisfaction are the last links in the supply chain.

You can’t make ice as fast as Amazon can deliver a couch. And it’s not overly dramatic to say that everyone is amazed at Amazon’s next-day delivery capability. More vehicles and drivers will minimize Amazon’s dependency on USPS and UPS shipping.

Meanwhile, prime competitors Walmart and Target are planning their own fulfillment centers and increasing automated supply chain logistics. They also want to enhance the quality and speed of delivery to customers.

Supply Chain KPIs for Construction Industry

Services and supplies account for 80% of a construction project’s expenses. That means almost every component in a project is driven by supply chain management.

Key performance indicators are one way we measure the success of construction projects. In addition to the basic KPIs, consider tracking:

  • Buyout process
  • Employees
    • # Reviews
    • # Training completions
    • Turnover #
  • Performance
    • % lost time
    • Amount of waste
    • Average revenue per day/hour
  • Quality Control
    • # Defects
    • # Reworks
    • # Site inspections
  • Safety
    • # Accidents per supplier
    • # Incidents
    • # Meetings
  • Subcontractors

Traditional KPIs for construction projects are usually determined by:

  • Competitors’ KPIs
  • Financial measurements
  • Historical numbers

Construction Monitor offers traditional building permit analyses for construction business-building. Our data analytics include:

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