The business model in which Budimex acts as a general contractor means in practice outsourcing many activities and simultaneous coordination and control of the work of a number of subcontractors and suppliers. At the same time, the most important activities and decisions are the responsibility of the company. This method of operation allows flexible resource management and adjustment to current needs. It offers the possibility of adjusting resources to the size and nature of the order portfolio. All this ensures in higher cost efficiency. At the same time, due to the diversified characteristics of works which change in the course of a project, the number and specialisations of the involved subcontractors and personnel also change.
However, such a business model means greater responsibility for the operation of subcontractors’ networks. As a consequence, Budimex feels obliged to verify external entities that carry out commissioned works. This is important both for maintaining the highest quality and for the safety of the works that are carried out. Long-term relationships based on mutual trust and up-to-date knowledge about suppliers who provide services on the market constitute the company’s unique capital. Supply chain management requires the effective selection of partners, their ongoing monitoring, evaluation and feedback, and the training of those working on site.
The Budimex Group's supply chain includes not only subcontractors on construction sites, but also entrepreneurs who supply it with materials and raw materials and provide selected specialist services. These include suppliers of steel and reinforcements, concrete, aggregates and cement, road barriers, railway rails, road bitumen, or fuels. The Group also uses external transport and security services.
There were no significant changes in the sources of construction site supply in 2020. The share of no supplier of materials or services exceeded 10% of the sales value of the Budimex and Budimex S.A. Group.
More information on risk management in the chain HERE .