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The Reality of Post-Pandemic Logistics/ Warehousing

Before the pandemic, the construction industry utilized the Just In Time (JIT) delivery system to make sure materials were where they needed to be. Schedules were very controlled, areas became ready onsite, and fabricators sent product directly to the site, where it was unloaded into the building and installed. There was a big time commitment in order to get the trucks unloaded and the product distributed properly.

After the pandemic, this model was quickly changed to compensate. Raw and finished goods distributions were severely disrupted, which meant the luxury of the JIT model was no longer feasible in the construction industry. This was mainly because dates were constantly being adjusted and schedules moved. As time went on, the supply chains improved, but we were still facing logistical challenges that precluded us from going back to the JIT model.

To combat this, warehousing and material management has become a standard for projects. Ordering materials early and warehousing them is the only way to ensure that products can be delivered to the site without interruption. Recently in an H2I Group project in Cripple Creek, Colorado, the owner had some vanities fabricated in Mexico, and due to lead time issues, they had been released early in the job. Since they had nowhere to be shipped, H2I Group offered to bring the vanities into our recently acquired warehouse, finish some assembly that was required, and package them to ship to the site in a controlled manner when the building was ready for them. While this method certainly adds labor and steps to the process, it has proven successful and has resulted in better material management.

If your project has warehousing needs, please reach out to H2I Group for more information!

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