The Supply Chain Revolution by Suman Sarkar

Author:Suman Sarkar
Language: eng
Format: epub
Publisher: AMACOM
Published: 2017-04-08T04:00:00+00:00

Second—Move Toward Strategic Relationships with General Contractors

The three-bids-and-a-buy process was discarded, and a more strategic approach was introduced. The bundling of projects allowed for early engagement with general contractors. They became more involved in the design phase and provided feedback on different assumptions. The new process also allowed for the robust selection of general contractors. They were selected based on their capability to meet future requirements and performance. Also, they were chosen for their overall value, including quality standards, schedule compression, and lower costs. Figure 5.4 is the schematic of the old versus the new process. The new process encouraged feedback to the general contractors and the setting up of a process for tracking performance. The performance data were then used for selecting general contractors in future years.

Figure 5.4—Bundle Bids vs. Three-Bids-and-a-Buy Process

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