5 ways innovative technology can boost construction spend
Innovative technology is revolutionising the construction industry, and forward-thinking companies are reaping the benefits. From the implementation of IoT sensors on a construction site for automatic material replenishment, to the use of mobile devices for foreman to track analytics in real time and avoid manually compiling reports, technology has undoubtedly changed the game.
One of the most important innovations is AI-powered sourcing technology, which speeds up the procurement process for buyers and can save time and money, as well as lower risk for construction and property leaders. Below are some of the main benefits to becoming an early adopter of cutting-edge procurement technology.
1. Increase competition among suppliers
Competition helps drive innovation and lower costs, but finding qualified suppliers can be challenging, especially the diverse suppliers that many leaders are tasked with identifying to help meet ESG goals. New AI-powered technology can quickly match qualified bidders to projects, creating shortlists that include both existing and new, diverse, providers.
2. Reduce risk
Innovative technology can highlight important questions or issues that may have been otherwise overlooked, ensuring companies address potential risks during the procurement process and not post contract. Natural language processing can guide users through a dynamic Q&A and precisely scope services to minimise project creep.
3. Simplify the sourcing process
AI-powered technology enables precise sourcing at scale, simplifying the process for busy procurement teams. The cumbersome steps of the RFP process, for example, are removed, freeing employees up to focus on more high-value activities. AI identifies desired business requirements up front and then offers a shortlist of suppliers exhibiting those characteristics, making it easy to select the best supplier for each specific need.
4. Eliminate human error
In construction, pricing proposals tend to be complex and time-consuming, with multiple tabs, line items, and calculations. New intelligent technology can compile pricing forms automatically, which not only speeds up the process but also reduces human error. Rather than have humans collate 25 spreadsheets into a single document, for example, AI can take over the process with more efficiency and accuracy.
5. Maximise Value
New digital platforms can drastically shorten the amount of time required from scoping a sourcing need to awarding the work, maximizing efficiency gains. Companies can generate unprecedented cost savings through precise scoping and curated bidder lists with AI-powered category expertise, resulting in instant savings of more than 20% at a time when companies are under pressure due to unprecedented rises in input costs.
Rod Freeman is VP, Construction and Property Category, at Globality, which uses AI to automate and optimise the sourcing of complex services such as marketing, consulting, legal, HR, IT, and facilities management