Supply partnerships key to efficient sourcing of construction materials –PPC

PPC Limited, Nigeria’s engineering and infrastructure Development Company, has advised contractors to scale hurdles associated with materials sourcing for their building construction projects by building strong resilient partnerships with global suppliers.

In view of the high cost of building materials and supply chain issues, the company in a statement issued in Lagos, stated that supplier relation­ships have become increasingly crucial to the early delivery of engineering projects.

Speaking on the expected improvement in port capacity in Nigeria with the unveiling of the Lekki deep seaport earlier this year, Anand Kumar, head of Building Services Engineering (BSE) division at PPC, said engineering contractors need to play their part in ensuring building materials are delivered promptly.

Supply chain delays caused by freight congestion at the ports, poor infrastructure and high shipping costs are some of the top challenges slowing down the progress of construction projects in Nigeria. Rising costs and lengthy periods of delay have significant consequences for engineering projects, such as increased operational costs, reduced productivity, damage to relationships with clients, to mention a few.

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However, with the upgrade in port capacity through the construction of the $1.5bn deep water port in Lekki, Lagos, there are hopes that waiting times for ships will be reduced.

“Engineering contractors should anticipate supply disruptions such as material shortages, geopolitical disruptions and other vulnerabilities. A proper understanding of the supply chain dynamics will help contractors take proactive action to lock in prices and avoid possible increased costs for key materials,” Anand said.

He added, “Project management teams who are responsible for ensuring materials are available at the right price point and in adequate quantity can also deploy multi-sourcing strategies, stock up raw materials and other inventory.”

Anand emphasized that material sourcing is important for a successful building project and requires proper planning in order to avoid unforeseen supply chain disruptions while meeting operational and financial goals set for the project.

According to Anand, working with contractors that have a track record of negotiating contracts, prices, and managing the supply chain, is a smarter approach to ensuring access to quality building materials and components at competitive prices.

PPC’s deep partnerships with leading global OEMs and a track record of over 25 years in procurement and supply chain management have facilitated efficiency in delivery of large and complex projects for a large number of end-to-end engineering projects across Nigeria.