“Thinking Different” - Lean Strategies for Uncertain Economic Times… does not always have to be a negative process!

In these uncertain times, it is completely understandable that many clients feel inclined to adopt a “wait and see” approach. The instinct to pause and assess the situation is natural, but it can lead to being unprepared when the direction of the economy becomes clearer. Instead, at New Zealand Construction Alliance (NZCA), we encourage our clients to take proactive steps to navigate these challenges and prepare for whatever lies ahead.

Reduce Lead Time

Taiichi Ohno of the Toyota Production System famously said, “All we are trying to do is reduce lead time.” And he was right! When NZCA talk about lead times, we are referring to — those periods from receiving the client enquiry to completing the build and handing over the keys, including, design lead times, build lead times, and supplier lead times. By focusing on reducing lead times, you can create a tighter connection with our clients, allowing you to respond swiftly to changes in demand and unexpected needs they may have.

It is important to recognise that during economic slowdowns, clients may become more selective, often feeling more empowered in their choices. By reducing lead times now, you can gain a competitive edge that helps shield your business during tough times while also offering a significant advantage when the economy begins to recover.

Moreover, by streamlining lead times, you can free up precious cash flow. This can ease the burden of managing finances by shortening the time between purchasing materials and receiving payment from clients. This process typically involves reducing inventory at every stage and collaborating closely with suppliers to decrease order lead times can be incredibly effective.

To embark on this journey of reducing lead time, consider mapping your entire process from start to finish. This exercise will give you valuable insights into what drives your lead time, enabling you to create a thoughtful plan for meaningful improvements.

At NZCA Our “National Coverage, Local Delivery” model provides us with a strong offering to partner with national clients to help fulfil their construction, fit-out, refurbishment or maintenance requirements throughout the country. This allows us to serve all clients while staying locally owned and operated, helping to reduce lead time for our clients.