Building efficiency: proper supply chain management in the construction sector
The development and growth of the construction sector involve more than erecting large structures; it requires comprehensive supply management to ensure projects come to life exceeding quality standards. This includes the efficient administration of a network of relationships and workflows with suppliers. A company's supply chain management is therefore critical because it helps prevent cost overruns and delays in processes, which in turn can positively impact the environment and society. It is thus surprising that supply chain management in 66% of companies in Peru are at an incipient stage, according to a 2021 EY study. At Pacasmayo, the supply chain plays a fundamental role in our value chain, allowing us to deliver on our promise of efficiency for our customers and society. For this reason, we pay special attention to key aspects such as innovation, sustainability in processes, and the value of human capital. By adopting innovative technologies and digitalization companies can have a more complete, real-time visibility of inventories, delivery routes and deadlines. It even allows companies to anticipate future requirements. Therefore, to effectively manage supply chains and optimize processes the industry should adopt systems such as Forecast Pro for Collaborative Forecasting, and implement advanced planning systems that consider multiple variables, scenario modeling systems, as well as end-to-end integrated procurement systems. Sustainability is another factor that is becoming increasingly important—not only because regulatory bodies demand more sustainable practices but also because customers and other interested stakeholders want to contribute to a responsible business legacy that genuinely benefits future generations. As part of our sustainability strategy towards 2030, we have established specific commitments and objectives within the framework of Environmental, Social, and Governance (ESG) principles. We apply these criteria to guide our supplier contracting decisions, also considering key aspects such as quality, adherence to deadlines, and delivery times. The human factor is equally crucial, enabling close collaboration among all supply chain actors, from suppliers to customers. Building long-term relationships based on ethics and trust is essential, as this can drive innovation and create a transparent work environment, critical for the comprehensive development of the sector. In line with our commitment to the sustainable growth of our suppliers, we created Crece+, a program aimed at strengthening the value chain in our areas of influence through the development of our suppliers whom we consider key allies. This initiative seeks to boost their growth and competitiveness while also promoting the adoption of good corporate practices. Since its launch, we have completed more than 150 academic hours of training, benefiting over 190 suppliers in Pacasmayo, Piura, Rioja, and other areas where we operate. By focusing on optimizing supply chains and responsibly adopting new technologies, companies can achieve more sustainable practices and promote effective collaboration with suppliers and subcontractors. This, in turn, positively impacts the quality of products, services, and construction solutions. Today, the supply chain has evolved from being a simple support process to becoming a key component of the overall business strategy driving both innovation and sustainability in the construction sector—a sector that requires businesses have EcoEfficient and transparent management as this will determine the development of the organization and the industry in the coming years.
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