The Future of Quick-Commerce in the Construction Industry
Hailing from a family with a rich entrepreneurial history, Amit began his career as a building contractor and cultivated a curiosity for creative thinking at a young age. Even during his college years, Amit dedicated time to family businesses and attained practical experience and insights.
Today everything from groceries to mobile phones is available at the click of a button, so why not construction materials or related services? Quick commerce has found its place in every industry, with people buying products from the convenience of their homes, and now the construction industry is following in their footsteps. It’s like an on-demand delivery for construction materials. It’s already changing the game in retail, and now, it’s transforming how construction projects get done.
With things moving too fast, with fast deliveries, and rising demand, there is a growing demand for quick, efficient platforms that could fulfill construction-related needs such as hiring a contractor, procuring building materials, tiles, kitchen hardware, and more.
Why do we need Quick-Commerce in the Construction Industry?
Construction materials have always been ordered in bulk with delivery scheduled in advance, due to late deliveries or price fluctuations. However, quick commerce is changing the way people shop. The introduction of quick commerce has opened an opportunity for platforms in the construction ecosystem to make materials or services easily available to customers, in record time.
With shorter project timelines, waiting that long can disrupt deadlines and the project. This is where quick commerce can address the problem and bridge the gap – by allowing purchase managers to get the materials they need, exactly when they need them, and keep things moving. At certain locations, quick commerce can further enable customers to order in real time and get delivery in just a few hours.
Advantages of Quick-Commerce
The growing demand for construction today, and in the coming future, demands efficient solutions. The Indian construction industry contributes 9% to India’s GDP, which includes real estate and building products, and it is further expected to grow at a CAGR of 6% in the coming years. There is massive potential in this industry, however, challenges like delivery delays, hiring the right contractors, or finding building material sourcing partners, can lead to missing project timelines. More so, the delay will not only reflect on the finances of the construction firms but also property owners.
The solution is adopting digital solutions, as these can help make things happen in real time. By simply integrating quick-commerce solutions in the construction industry, startups can reshape how purchase managers procure materials or hire contractors, and offer several other advantages:
Minimizing downtime: One of the biggest challenges in construction projects is downtime caused by building material shortages. A lack of essential supplies can bring the ongoing project to a halt, which can lead to cost overruns (labour cost and continuous price change) and further delays. With the introduction of quick-commerce platforms, construction teams can now order materials as and when needed, ensuring that construction continues without interruption. This on-time model will help reduce the risks associated with traditional bulk ordering. (Depreciation, wear and tear, and storage cost)
Enhanced flexibility: Things don’t always go as planned in construction, sometimes there’s an unexpected design change or the on-site team needs a different type of material. Quick-commerce provides the flexibility of materials on the go without the hassle of delay or unavailability of material that traditional supply chains often struggle to offer. This level of flexibility and on-demand delivery can allow purchase managers to be more agile and responsive to on-site changes and enables constructors to continue to work with minimal downtime.
Improved cost efficiency: While bulk ordering might seem more cost-effective, it often results in having surplus material on the construction site. Adopting quick-commerce solutions can help cut down on waste by giving purchase managers the power to be in charge of their procurement process, ensuring that orders arrive on time, every time, whenever needed. Moreover, construction firms will not have to worry about storing excess materials on-site, which will further help save on storage costs and prevent damage to building supplies.
Better Supplier Relationships: With quick-commerce platforms, construction companies have access to improved transparency and control over their delivery cycle. With e-procurement systems in place, purchase managers can track their orders in real time, compare prices from different suppliers, call for bids, and make informed decisions in a structured way.
Digital platforms have the potential to help build stronger, more efficient partnerships with suppliers – as now both parties can have access to smoother transactions, proper paperwork, and reliable deliveries.
Key Challenges to Address
While the benefits of quick commerce are clear, there are some challenges that will hamper its adoption.
Quick-commerce relies on a solid logistics network. In urban areas like Delhi, Mumbai, or Bangalore, this infrastructure is often well-developed, but in more remote locations or areas with poor connectivity, it can become a little tricky in remote areas.
While quick-commerce can offer a variety of materials that local suppliers will be unable to provide, construction companies will need to evaluate their requirements before making any purchase.
Evolution takes time, and so adopting quick commerce would require time and willingness from teams to experiment with new technology. It might also require proper training to use quick commerce platforms. So, it’s essential in the earlier stages for purchase/project managers to follow a training module on how to call for bids or learn how to sync the platform with their in-house systems. Presently, not many construction firms have evolved to become tech-savvy, so they might need to invest in both training and the right tools to make this shift successful.
Future of Quick-commerce in the Construction Industry
As the construction industry becomes more competitive, quick commerce can be a differentiator for construction firms, especially small-scale companies. Without a doubt, the ability to get materials fast and keep projects on track can be a huge advantage, especially when clients expect faster turnaround times without sacrificing quality.
In the near future, we might see construction managers evolve and incorporate quick-commerce platforms right from the start. For companies that are willing to adapt, quick commerce could help reduce downtime, increase flexibility, and cut costs. It’s clear that adopting quick-commerce would change the way construction projects will be executed – enabling purchase managers to design their workflows around fast, on-demand deliveries, improving their scheduling and budgeting as well.
While there are logistical and technological challenges to overcome, the long-term benefits of quick-commerce make it a worthwhile investment for companies wanting to embrace the change to thrive in a fast-paced, competitive market.
Today everything from groceries to mobile phones is available at the click of a button, so why not construction materials or related services? Quick commerce has found its place in every industry, with people buying products from the convenience of their homes, and now the construction industry is following in their footsteps. It’s like an on-demand delivery for construction materials. It’s already changing the game in retail, and now, it’s transforming how construction projects get done.
With things moving too fast, with fast deliveries, and rising demand, there is a growing demand for quick, efficient platforms that could fulfill construction-related needs such as hiring a contractor, procuring building materials, tiles, kitchen hardware, and more.
Why do we need Quick-Commerce in the Construction Industry?
Construction materials have always been ordered in bulk with delivery scheduled in advance, due to late deliveries or price fluctuations. However, quick commerce is changing the way people shop. The introduction of quick commerce has opened an opportunity for platforms in the construction ecosystem to make materials or services easily available to customers, in record time.
With shorter project timelines, waiting that long can disrupt deadlines and the project. This is where quick commerce can address the problem and bridge the gap – by allowing purchase managers to get the materials they need, exactly when they need them, and keep things moving. At certain locations, quick commerce can further enable customers to order in real time and get delivery in just a few hours.
Advantages of Quick-Commerce
The growing demand for construction today, and in the coming future, demands efficient solutions. The Indian construction industry contributes 9% to India’s GDP, which includes real estate and building products, and it is further expected to grow at a CAGR of 6% in the coming years. There is massive potential in this industry, however, challenges like delivery delays, hiring the right contractors, or finding building material sourcing partners, can lead to missing project timelines. More so, the delay will not only reflect on the finances of the construction firms but also property owners.
The solution is adopting digital solutions, as these can help make things happen in real time. By simply integrating quick-commerce solutions in the construction industry, startups can reshape how purchase managers procure materials or hire contractors, and offer several other advantages:
Minimizing downtime: One of the biggest challenges in construction projects is downtime caused by building material shortages. A lack of essential supplies can bring the ongoing project to a halt, which can lead to cost overruns (labour cost and continuous price change) and further delays. With the introduction of quick-commerce platforms, construction teams can now order materials as and when needed, ensuring that construction continues without interruption. This on-time model will help reduce the risks associated with traditional bulk ordering. (Depreciation, wear and tear, and storage cost)
Enhanced flexibility: Things don’t always go as planned in construction, sometimes there’s an unexpected design change or the on-site team needs a different type of material. Quick-commerce provides the flexibility of materials on the go without the hassle of delay or unavailability of material that traditional supply chains often struggle to offer. This level of flexibility and on-demand delivery can allow purchase managers to be more agile and responsive to on-site changes and enables constructors to continue to work with minimal downtime.
Improved cost efficiency: While bulk ordering might seem more cost-effective, it often results in having surplus material on the construction site. Adopting quick-commerce solutions can help cut down on waste by giving purchase managers the power to be in charge of their procurement process, ensuring that orders arrive on time, every time, whenever needed. Moreover, construction firms will not have to worry about storing excess materials on-site, which will further help save on storage costs and prevent damage to building supplies.
Better Supplier Relationships: With quick-commerce platforms, construction companies have access to improved transparency and control over their delivery cycle. With e-procurement systems in place, purchase managers can track their orders in real time, compare prices from different suppliers, call for bids, and make informed decisions in a structured way.
Digital platforms have the potential to help build stronger, more efficient partnerships with suppliers – as now both parties can have access to smoother transactions, proper paperwork, and reliable deliveries.
Key Challenges to Address
While the benefits of quick commerce are clear, there are some challenges that will hamper its adoption.
Quick-commerce relies on a solid logistics network. In urban areas like Delhi, Mumbai, or Bangalore, this infrastructure is often well-developed, but in more remote locations or areas with poor connectivity, it can become a little tricky in remote areas.
While quick-commerce can offer a variety of materials that local suppliers will be unable to provide, construction companies will need to evaluate their requirements before making any purchase.
Evolution takes time, and so adopting quick commerce would require time and willingness from teams to experiment with new technology. It might also require proper training to use quick commerce platforms. So, it’s essential in the earlier stages for purchase/project managers to follow a training module on how to call for bids or learn how to sync the platform with their in-house systems. Presently, not many construction firms have evolved to become tech-savvy, so they might need to invest in both training and the right tools to make this shift successful.
Future of Quick-commerce in the Construction Industry
As the construction industry becomes more competitive, quick commerce can be a differentiator for construction firms, especially small-scale companies. Without a doubt, the ability to get materials fast and keep projects on track can be a huge advantage, especially when clients expect faster turnaround times without sacrificing quality.
In the near future, we might see construction managers evolve and incorporate quick-commerce platforms right from the start. For companies that are willing to adapt, quick commerce could help reduce downtime, increase flexibility, and cut costs. It’s clear that adopting quick-commerce would change the way construction projects will be executed – enabling purchase managers to design their workflows around fast, on-demand deliveries, improving their scheduling and budgeting as well.
While there are logistical and technological challenges to overcome, the long-term benefits of quick-commerce make it a worthwhile investment for companies wanting to embrace the change to thrive in a fast-paced, competitive market.
