Author: Brett Knox
July 25, 2024 - 5 MIN. READ
Time waits for no one. Commercial electrical contractors know that better than anyone. Projects always have a contractual timeline and due dates. Often, schedules are interdependent, with other trades depending on electrical contractors and vice versa.
Timeline delays from supply chain failures are expensive and can damage your reputation. They can also cost you future business. Some factors may be beyond your control, but commercial electrical contractors must do what they can to take charge of the project schedule. Supplier relationships are a prime example of something you can control.
Selecting quality suppliers and building lasting, strategically aligned relationships with them is a way to get control over your supply chain. If you can achieve that, your supplies and equipment will arrive on time, within specifications, and at the right cost. You may have grand plans and skilled electricians, but all can be lost if your suppliers fail to deliver.
This article will illuminate the advantages of strategically aligned supplier relationships. In addition, we will share some tips on how to get there.
Unlocking Strategic Advantages for Commercial Electrical Contractors through Quality Supplier Relationships
There are many benefits to high-quality, strategic supplier relationships.
Tailored Solutions and Product Expertise
Successful electrical suppliers need in-depth knowledge of their products, markets, prices, and trends. It is their business to know about upcoming shortages, price increases, and production delays. They can and should become trusted advisors to commercial electrical contractors.
When you find a superior supply company, open the dialogue to invite them into your projects and business strategy. The more familiar they are with the details of your project needs, the better they can apply their expertise to help you plan and meet deadlines in a tailored way.
Thus, look for suppliers who are familiar with and successful in this approach. They will become your trusted logistics planning partner. Treat this role with the respect and value it has for you.
A good supplier will become invaluable in planning and problem-solving. For example, let’s say you encounter unforeseen conditions that prevent the use of certain switchgear. If you have a fully involved, trusted supplier, they can help you with alternative products.
Technological Innovation and Advanced Products
Step one is to leverage technology in your own business. Optimize and automate your procurement and contracting practices. Your decisions must be data-driven, so you need real-time, high-quality data. Otherwise, you are flying blind. Excel files and paper records no longer cut it for commercial electrical contractors.
You also need to manage your inventory carefully, so use technology to automate it. Solid inventory management is another key to success for electrical contractors. You must know the quantities and specifications of your stock; otherwise, you risk mad scrambles mid-project.
Solving the problem by overstocking eats into your operating cash and complicates inventory management. The only solution is quality inventory control software.
When selecting a strategic supply partner, look for your technological mirror image. Effective automated procurement and inventory management are non-negotiable. If you are both technically advanced, you will make a quantum leap in speed and accuracy.
Successful suppliers are savvy about innovative electrical products. Strategic supplier relationships keep you up to speed on better, more efficient technology to offer your customers.
In requests for proposals, customers often ask for your insight on how project specifications can be modified to save money, increase performance, or both. The term for this is value engineering. This is where quality suppliers add value for commercial electrical contractors. With a superior supply relationship, you can rely on them to support you effectively.
Building Long-Term Relationships for Consistency
Squeezing suppliers for the last nickel for short-term gain is a thing of the past—along with a reliable global supply chain. Stable, win-win, long-term relationships are the keys to prosperity today. Supplier churn is expensive and deprives you of the dependable support discussed above.
For those reasons, a quality supplier will most likely avoid short-term deals with commercial electrical contractors. They will invest in solid long-term relationships instead. Continuity makes for smoother project execution since you know each other’s style and abilities and don’t waste time getting to know each other under stress.
Such solid relationships are forged in transparency, trust, and openness.
Mitigating Risks through Quality Assurance
Quality assurance is essential to project success. The National Electric Code (NEC) requires that all electrical components sold in America be endorsed by an OSHA-approved independent authority having jurisdiction. These are Nationally Recognized Testing Laboratories or NRTLs.
Defective parts cause failures that hurt commercial electrical contractors in too many ways to list. Be sure that your supplier certifies in writing that all parts are approved by an NRTL. Ask your supplier how they confirm this and what internal quality assurance procedures they have in place. You do not want surprises. Nor do quality, reliable suppliers.
Helping Commercial Electrical Contractors Take Control
Commercial electrical contractors can control their project logistics by leveraging long-term, win-win strategic partnerships with quality suppliers. Selecting them and engaging in open, collaborative planning unlocks their invaluable technical expertise and market knowledge. It also helps to ensure that you get the right parts, on time and at a fair price.
To prosper, start by optimizing your procurement and inventory control processes. Then, look for equally technology-enabled suppliers to partner with to maximize speed and efficiency.
Win more commercial electrical jobs and make more margin
Instead of going through the qualification process with all the distributors in your area, join a purchasing program like Raiven. Companies like Raiven combine the buying power of all their members and negotiate deep discounts, service terms, and exclusive pricing agreements with industry-leading suppliers and manufacturers on your behalf. You’ll pay less for wire, conduit, switchgear, lighting, load management devices, tools, and more. You don’t have to evaluate and negotiate with suppliers; this has already been done for you.
Immediately receive pre-negotiated discounts of 7%-30% from prominent manufacturers and distributors, including Alpscontrols, ChargePoint, Ferguson, Grainger, Graybar, HD Supply, Home Depot, Lowe’s, Office Depot, Sunbelt Rentals, Schneider Electric, United Rentals, and more!
Procurement optimization takes time and resources. Commercial electrical contractors can get a running start with Raiven’s Custom Marketplace, which streamlines buying and provides one place for all your employees to purchase.
Raiven is dedicated to supporting electrical contractors by providing unbeatable prices on equipment, parts, and maintenance supplies. Win more electrical jobs and make more profit by joining Raiven. Visit Raiven to learn more about how we can help you reduce costs and increase profits.
