Supply Chain Integration Paying Off?

Printer-friendly versionSend by email

A recent survey of the paper and building materials industries shows that improving supply chain efficiency can save big bucks.

January 01, 2004

Ever wonder if public builders’ investments to integrate their information systems with trades, suppliers and manufacturers pay off?

The survey, conducted by Stat One Research, polled professionals in those industries about the benefits and barriers of systems integration with suppliers and buyers. Respondents said these are the key benefits of B2B integration:

1. Faster transactions, 51%; 2. increased data accuracy, 35%; 3. cost savings, 34%; 4. convenience, 15%; 5. (tie) lower inventory, less paperwork, 9%

They also reported running into barriers blocking the full potential of such integration:

1. Incompatibility, 22%; 2. upfront costs, 21%; 3. suppliers not ready for e-commerce, 12%; 4. security concerns, 11%; 5. insufficient resources, 10%

Still, more and more companies are seeing the benefits of electronic exchange between trading partners. Asked about the progress of supply chain initiatives, D.R. Horton chairman Don Horton replied, “The bigger we get, the better we perform.”

However, Gainesville, Fla., builder Barry Rutenberg says large builders’ advantage in B2B integration might be short-lived. “It will eventually trickle down to the rest of us,” he says.

Comments on: "Supply Chain Integration Paying Off?"

April 2014

This Month in Professional Builder

Getting Beyond the Impasse

Outstanding Outdoor Spaces

Taming the Chaos

Designs for First-time Buyers


The 2015 Chevrolet Silverado 2500HD delivers the capability heavy-duty truck customers demand, along with greater refinement and control for more comfort and confidence.


Matt Ivey shares how Ivey Homes found a successful medium between in-house sales and outsourcing.