SWITCHING FROM JUST IN TIME DELIVERY TO PLANNING AHEAD
Some things will never be the same again after the global coronavirus pandemic. One example of the changes we are seeing is many builders are transitioning away from the Just In Time (JIT) delivery system. JIT delivery systems provide materials as orders come in, allowing for lean, at-need production process with little to no surplus. However, these types of systems are vulnerable to sudden peaks in demand, as depleting supply chains have already hit several industries including lumber and building materials.
You would think that during COVID the availability of building materials and products for home building and remodeling would be more plentiful and lower-priced, but we’ve seen the opposite in the last few months. Building materials are heavily driven by commodities like lumber, steel, and oil. When those raw materials face supply disruptions, they can have a trickle-down effect on the supply chain. COVID is slowing the production and delivery of raw materials in certain building material sectors as the requirement of social distancing is limiting manpower.
The best advice for keeping these disruptions from slowing down your construction project is to make your product decisions early and place your orders with plenty of lead times.
