The Global Materials Group Difference
The difference between a project supplied by Global Materials Group and one supplied by the bid process can be measured in terms of financial savings. However, the true difference for the cooperative member should be measured in the value added by the GMG approach to supply chain management. Supporting our members truly begins after "the winning bid."
Solutions include aggregated, group purchasing to provide members with product selection, schedule reduction and cost savings. The value alignment of key project objectives with the group procurement process yields the best economic solution for our members.
The Global Materials Group is committed to the highest standards of the construction profession. The Association discourages disclosure or discussion of confidential prices or other confidential information.
Global Materials Group Is Improving The Supply Chain Process
The Global Materials Group Solution brings a new level of services to the construction industry. This service integrates technical product expertise for each category with construction experience and savvy to deliver the best balance of Product Selection, Schedule Savings, and Cost Savings.
Global Materials Group builds an integrated supply chain by establishing a value chain for each product. This value chain brings members closer to the key resources at the manufacturer to provide value added services and solutions. Global Materials Group overlays technical expertise and product specific supply chain knowledge to build value into every step of the process.
Project Planning
Most major construction and capital improvement projects can benefit from direct purchases from the manufacturers. Working with your project team, Global Materials Group identifies elements that can benefit from direct purchasing. The construction purchasing background of our staff and the leverage of group purchasing reduces member net costs and saves precious time.
Our members are best served by engaging the Global Materials Group team at the purchasing stage of a project. It is during this critical stage in project development that our direct access to manufacturers affords clients the opportunity to capture selection, schedule, savings, and service advantages that may be foregone at later stages of construction.
Before the costs of a project can be controlled, they must first be identified. After the bidding phase, the Global Materials Group staff will work closely with the project team to identify the direct purchase scope and assign values to the various components. Initial cost models provide an important reference to be used before proceeding with purchasing. The Global Materials Group team will follow the project team's lead in:
- Targeting vendors that can meet or exceed price, quality and service standards
- Determining Value Engineering Opportunities
- Updating and Managing the Pricing Estimate
Our vendor relationships focus on a continual improvement of cost and time saving. Time saved in the production cycle is money saved by both the contractor and the vendor. Through Global Materials Group materials or equipment enters the production queue within days of award, or is already in process through our pre-review system. We manage the process electronically, transmitting and tracking the materials with weekly schedule updates, for immediate sign-off of the materials before shipping. By eliminating lag times in the production process, we are able to assist with predicable delivery schedules.
Global Materials Group is in Control
When Global Materials Group is the point of responsibility and control for material procurement, the entire project team gains access to the supply chain process. GMG's role is to minimize delays and provide the member with access to the supply chain. The information attained allows Global Materials Group and its members to make calculated and insightful decisions when supply issues arise.
Scope Clarification
Prior to approaching our vendor base for pricing, Global Materials Group will organize a specific list project operating rules for inclusion with the bid documents. This list contributes to a more comprehensive buyout, minimizes future changes, and describes the methods and procedures that vendors follow to coordinate their materials or equipment delivery. This substantially increases effective communication among Global Materials Group, the contractors, and the vendors, thereby minimizing costly clarifications afterwards.
The coordination of the detailed hand-offs required between the manufacturer and the contractor is critical for successful implementation. Early coordination with the project team leads to the best pricing which ensures a successful project.
Process Control
Global Materials Group manages the day-to-day details of the direct purchase process- details that are often lost by the traditional balance of the project team's activities. By allowing GMG to focus on managing the material and equipment supply chain, the member's project team is freed to focus on key issues and solutions. Global Materials Group manages the major supply chains, thereby enabling more efficient project decisions relative to logistics, budget, and schedule.
Global Materials Group can assist in purchasing construction items that should be considered direct purchases early in the construction period. Our staff works hand in hand with the project team to assess the potential value, to solidify and streamline the project schedule, and to develop the direct purchase strategy.
Global Materials Group aligns the sourcing strategy with the key project objectives. Therefore, the sourcing strategy is based on a foundation to deliver the member's desired outcome.
Global Materials Group follows the project design details and scopes of work explicitly before issuing "buy recommendations". The early scripting of these bid documents encourages free flow of information between each member of the supply chain. This communication prompts questions, which leads to the discovery of scope gaps. These clarifications allow suppliers and members to better understand their responsibilities. During the purchasing period, all concerned parties are able refine their scope of work, diminishing risk contingency by reducing the number of changes in the field.
Bid Tabulation Spread Sheets
Upon receipt of bids, Global Materials Group prepares bid tabulation spread sheets that evaluate all bids technically and commercially. This important process assures that the true low bidder provides the best material or equipment value for the project.
Price Negotiation
Upon completion of the bid tabulation spread sheets, Global Materials Group will negotiate with the most qualified and responsive vendor to obtain the best price for the services required. The results of this process are shared with the client and project teams. Global Materials Group will provide recommendation of award and any qualifications at variance with the supplied contract documents.
Purchasing Solutions include aggregated, direct bidding/purchasing to provide the project management team with product selection, schedule reduction, and cost savings. The value alignment of key project objectives with the procurement process yields the best solution for the builder.
Critical Path Timing
Our vendor relationships focus on a continual improvement of time savings. Time saved in the production cycle is money saved by both the owner and the vendor. Through Global Materials Group managed submittal distribution-review-approval process, materials or equipment enters the production queue within days of award, or is already in process through our pre-review system. We manage the process electronically, transmitting and tracking the materials with weekly schedule updates, and providing factory approval meetings for immediate sign-off of the materials before it is shipped. By eliminating lag times in the production process, we are able to assist in delivery of materials and equipment with predicable delivery schedules.