Top Five Reasons Why Housebuilders Should Choose Likeminded Suppliers

The UK construction industry has faced difficult times in recent years.

‘The sector has experienced the highest number of bankruptcies of any industry in the UK for the past three years, according to auditing firm Mazars,’ reports the Evening Standard, who go on to reveal that approximately 4,370 companies in the sector have closed down in the last year. 

This unfortunate situation is one largely out of the homebuilders’ control, influenced by a skills shortage, planning delays, price increases and delays on materials, as well as new regulations imposed by various changes to laws and policies.  In a situation like this, it is more important than ever for Build-to-Sell (BtS) homebuilders to take measures to secure their place in the property market and take every available step to increase sales and revenue for their business.

One area that can yield significant advantages is their approach towards customer care and utilising property technology to enhance their service.  However, the success of this relies on the BtS property developer’s choice of suppliers.  As the global product sourcing organisation, Zignify, stresses, ‘The importance of selecting reliable suppliers cannot be overstated.’  When homebuilders choose to work with likeminded suppliers who share their values, it creates a strategic alignment that can provide numerous benefits.  

Here, we list the top five benefits to choosing a likeminded supplier for residential engagement, property management and handover solutions.

1. Enhanced Collaboration and Trust

Companies and suppliers who share a similar ethos, prioritising values such as integrity, sustainability, or innovation, form stronger relationships that foster mutual trust.  As procurement solution provider, Una, explains, ‘When organizations and suppliers share similar values, it creates a sense of mutual understanding and respect.’  This leads to smoother communication, quicker problem-solving, and an increased willingness to collaborate on new projects.  

When a BtS developer trusts their property technology or handover solution provider, it offers peace of mind and allows them to remove this aspect of operations from their workload, ultimately resulting in an increase in productivity.

2. Improved Brand Reputation

Working with like-minded suppliers strengthens a company’s reputation with customers, investors, and other stakeholders.  And for BtS homebuilders, managing brand reputation is key.  As HogoNext points out, ‘In the concrete jungle of the construction industry, a strong brand reputation is not just an asset; it’s the bedrock upon which success is built.’  In today’s market, homebuyers are increasingly aware of ethical and environmental considerations.  Supply Chain Managers ASCM highlight that, ‘According to Markstein and Certus Insights, 70% of consumers want to know how the brands they support are addressing social and environmental issues, and 46% pay close attention to these efforts when making purchase decisions.’ 

When a homebuilder works with suppliers who share their values, it reinforces their ethos, from a dedication to sustainability to a focus on providing the best possible service for their customers on the journey to homeownership.  This doubling down on company values through supplied products or services enables homebuilders to manage their brand more effectively, enhancing brand loyalty among their customers and attracting conscientious consumers.

3. Long-term Stability

Value alignment helps property developers and their suppliers build long-term, stable partnerships.  As previously mentioned, one of the most significant advantages of choosing a likeminded supplier with similar values is that it helps to increase trust between both parties.  In a study regarding the success of collaborations between companies and their suppliers, McKinsey found that, ‘Buyers and sellers both describe high levels of trust in relationships that they consider strategic.  In most cases, that trust has been built up over time, based on longstanding business relationships.’

With shared objectives and ethical practices, both parties are more likely to stay committed to the relationship, even during challenging times.  This continuity leads to fewer disruptions for employees, lowering operational risks and fostering an environment for consistent growth.

4. Sustainability and Opportunities for Technological Innovation

Companies that share values related to sustainability or innovation can work together to develop eco-friendly products or streamline processes that reduce waste.  If a homebuilder is continually striving for more environmentally friendly building practices, and they choose an environmentally conscientious supplier, they will also have a more significant reduction in their carbon footprint as a joint operation.

Also, as ESG solution provider, Zuno Carbon, warns, ‘Suppliers with poor environmental practices or unethical labour conditions pose significant risks to a company's reputation and may lead to supply chain disruptions or legal issues.’  This makes choosing a supplier that aligns with your sustainable building values an essential consideration.

A collaboration of sustainable businesses not only improves environmental impact but can also lead to cost savings and access to new market opportunities as today, sustainability provides a competitive advantage.

In terms of technological innovation, when a homebuilder chooses a property technology provider that shares their tech forward approach, they are choosing a supplier who will stay abreast of the latest advancements in property technology and ensure their products don’t fall behind. 

5. Cultural and Ethical Alignment of Similar Sized Companies

Working with likeminded suppliers can often mean working with companies of a similar size to your own.  This may be an important part of your supplier evaluation, and something you are proud to mention in your company ethos.  Smaller companies who work together, supporting one another, can share the aim of shrinking the gap between smaller and larger organisations’ success in securing new clients. 

Another advantage, highlighted by Business for Social Responsibility is that, ‘Smaller firms are often able to be more flexible and respond quickly to ad hoc or specialised requests.’  So, as well as helping one another, it might also prove a more effective partnership when choosing a smaller supplier.

Of course, as well as the size of the company, it is also important to ensure that both company and supplier maintain consistent standards in their business practices, whether it’s a focus on sustainability, a customer-centred approach, promoting diversity, or ensuring transparency in their supply chains.  The property developer’s success hinges on reliable relationships with their property technology or handover solution supplier.  

The five benefits listed here reinforce why homebuilders increasingly choose likeminded suppliers who share their values.  The importance of choosing the right supplier for your property technology and handover solutions goes beyond just cost and efficiency, it can help companies to build resilient, responsible, and future-focused partnerships, leading to better growth for your business.

To find out more about working with us, either for a traditional handover experience that we tailor-make for every client, or at Spaciable for your tailored property technology needs, get in touch here.