Achieving Cost Saving, Profitability and Competitiveness from Design Standardization and Strategic Procurement in Construction Projects.

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Yasser Alkazzaz, a seasoned engineering and construction industry professional with track record optimizing construction project delivery and procurement, published today a new article that discusses new approach to construction project portfolio optimization through design standardization, globalization of procurement and optimization of sourcing strategies. The article provides useful observation of construction industry challenges and opportunities but also proposes a practical solution approach to identify and implement organizational, financial and operational improvements in any construction contractor company.

The published article suggests a new approach to assist construction contractors in driving standardization and globalization across their portfolio of projects in addition to optimizing strategic procurement and sourcing strategies across all relevant construction materials and commodities. The approach consists of identifying and implementing cost saving opportunities from design standardization, “re-use in design," modularization, prefabrication, and subsequently from related global procurement strategies, contracting strategies and associated alliance programs or framework agreements.

In addition, the approach assists construction companies in driving cost saving and stronger profitability from optimizing procurement & sourcing strategies. The goal is to consider strategic procurement as strategic weapon to empower projects at both the proposal and delivery stages.

The approach consists of evaluating and analyzing current company spend and supply base, and identifying not only cost saving but also suppliers strategies and global contracting agreements that reduce cost of materials and improve project delivery performance. As a consequence, construction contractors companies will be leveraging these standardization and optimization opportunities to increase the rate of project to project repetition and subsequently optimize their delivery methods and profit as well as to strengthen their bid competitiveness. As an indication, similar actions could yield a reduction of 18%-25% in materials cost and up to 24% in construction cost saving in addition to laying down stronger foundation for competitiveness and scalable growth.

The article can be viewed or downloaded from the following link:
http://www.e2cbridge.com/project-strategic-sourcing-.html

About the author
Dr Yasser Alkazzaz (https://www.linkedin.com/in/yasseralkazzaz) is founder and project management consultant at E2C Bridge http://www.e2cbridge.com a project delivery optimization consulting company. He has an over 26-year track record of optimizing planning & controls, procurement and supply chain operations in capital construction projects, manufacturing and industrial operations environments. Most recently, he spent 7 years in capital projects assisting clients optimizing return on capital expenditure from budget saving and schedule performance through project portfolio standardization, strategic sourcing and superior project delivery optimization including project strategy, project controls and materials management. In addition, Yasser has developed lean project management & controls process and methodologies that fully integrate procurement and material management with 4D/BIM technologies and result in superior budget and schedule delivery performance. Prior to capital projects experience, he worked 10 years in supply chain operations leading projects in strategy development, sourcing optimization, risk modeling, operations & performance management and IT/process alignment. Before that, spent 12 years developing and leading projects in manufacturing planning and scheduling optimizing throughput, lead time and improving operating expenses, on time delivery and responsiveness. Prior to E2C Bridge, was global director at Hatch engineering consulting and construction management and held various executive positions before in USA and Europe

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