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Industry Experience

Construction, Building Materials and Property Development

The construction and building industry is characterised by a few leading conglomerates who operate multi-faceted business divisions supplying goods and services to different elements of the industry. The supply chains deploy specialised equipment which typically caters for one division’s needs.

The focus is on timeliness of delivery of materials as delays in the supply chain seriously impact building construction timelines. One common theme is obtaining synergies through centralised contract management, while on other occasions, the sharing of fleets is of interest.

Where a company is located has a fundamental impact on its ability to control costs, generate revenue and maximise performance. As urban populations grow and cities expand, the ability to leverage geography in real estate decision making has become critical to capturing economic benefit.

XAct Solutions uses Reverse Location Analysis to identify and interpret the transport cost and travel time parameters a potential occupant would accept in the context of their supply chain requirements when comparing multiple sites.

With internal knowledge and skills across the management of property development projects, site acquisition and construction, we have supported several real estate investment trusts and corporate occupiers to better understand the value of their individual land holdings in comparison to alternates. This comparison has facilitated well-informed investment decisions for several of our clients.

The industry supply chain strategy solutions we have provided across this sector include:

  • Delivering cross business unit synergies
  • How best to utilise transport fleet equipment
  • What supply chain equipment should be outsourced
  • How to manage the diversity of product and raw materials in warehouses and hubs
  • Reverse Location Analysis (pre-purchase due diligence and marketing)
  • Highest and Best Use Assessment
  • Development Site Feasibility Analysis
  • Property Portfolio Visibility and ongoing Alignment with Business Objectives

XAct Solutions were recently engaged by one of the region’s leading real estate investment trusts to compare and rank 17 industrial locations to determine the economic benefit potential occupants could expect to realise in locating a Distribution Centre in any of the 17 locations. The output provided a ranking against the median score which then supported our clients marketing initiatives, purchase and disposal strategies and provided “science” to several previously unanswered questions.

We have partnered with industry leaders across the region including to develop industrial property solutions:

  • Bluescope Steel
  • Boral
  • CSR
  • Dexus
  • Fletcher Building Group
  • Goodman
  • GPT
  • One Steel

Client Challenge

A leading manufacturer of construction materials wanted to identify achievable cost savings opportunities in their extensive transport operation.

The Situation:

  • The client was looking to drive improvements in their supply chain.
  • Suboptimal internal coordination and lack of clear process was inhibiting improvement.
  • Prior analysis by internal client team showed allocations was an area of improvement.

The Outcome:

  • Opportunities identified with size of the prize estimate of 5 to 9% of spend.
  • Work completed in a very brief period of time and utilised effective collaboration.
  • Opportunities identified to improve fleet utilisation and reduce costs.