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Supply Chain

The Supply Chain Platform Problem Nobody in Construction Wants to Admit

πŸ”‘ Key Finding

Evaluate supply chain platforms by supplier adoption rate in live deployments, not contractor dashboard features. If the vendor can't show you 6-month supplier retention data, the platform doesn't work in practice.

There are now over 40 construction supply chain platforms promising real-time material tracking, supplier visibility, and procurement automation. Most contractors are using zero of them β€” and for legitimate reasons.

The core problem is fragmentation. A Tier 1 contractor might work with 300 subcontractors across a portfolio. Getting 300 independent businesses to adopt, maintain, and accurately update a shared platform requires change management that no SaaS subscription fee covers. Platforms that mandate supplier onboarding see 60-70% data dropout within 90 days. The platforms gaining real traction share one characteristic: they reduce work for the supplier, not just the contractor. Combining automated PO generation, payment acceleration, and compliance documentation in one supplier-facing interface creates enough value on both sides to sustain adoption.

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