The last
decade (1990 to 2000) has been a period of almost unprecedented
growth for landscape construction in the desert southwest and a
time of great opportunity for landscape contractors to expand
and diversify their businesses and take advantage of a robust
construction economy. While work has been plentiful, bidding has
remained extremely competitive, leaving margins tight and
placing greater emphasis on efficiency and productivity to
insure profits. Consistent, competitive plant material pricing
is critical to landscape construction profitability. The old
style pressure sales methods have all but disappeared giving way
to a more symbiotic relationship between contractors and plant
vendors. By working cooperatively with suppliers it is easier
not only to have top quality products at the lowest possible
price but to also have quality trees and shrubs at the time they
are needed for installation.
Growth in landscape construction has placed great demands on the
wholesale nursery growers. Not only have growers needed to
provide quality products in greater quantities, they have also
had to manage their production schedules and rotate essential
plant stocks so that plant are appropriately sized, healthy and
vigorous at the time of delivery to the construction site.
To fill orders for landscape construction the contractor’s
Purchasing Agents (PA’s) must coordinate with field project
managers or foremen, other trades, landscape architects,
developers and plant suppliers. Unlike hard-goods, which are
typically manufactured items, PA’s have to fill tree and shrub
orders with an ever-changing plant palette, shifting inventories
and must be mindful of seasonal influences on the availability,
size and quality of plants offered for sale. Coordination and
anticipation are critical to meeting construction schedules and
client’s expectations with high quality plant material.
The lag between the awarding of landscape construction contracts
and the start of the actual installation varies from a few days
or week to several months and in extreme cases a year. Projects
with quick start dates give PA’s little opportunity to plan
ahead. When more advance notice is available PA’s can survey the
market to determine:
1) what
items will be available when the project starts,
2) what plant material will be of good quality and size
within the time allotted,
3) which nurseries can plan ahead to accommodate his
quantities and requirements,
Such planning
can results in a consistent and predictable supply of quality
plant products and pricing that stay within or below bid costs.
By buying smart and taking advantage of market opportunities
(early pay, bulk purchases and volume discounts or special buys)
PA’s can supply projects under construction budget estimates.
Working with a reasonable lead-time offers tree and shrub
growers opportunities to more effectively manage their
inventories, costs and labor. Similarly, growers must research
and exploit market opportunities when purchasing to reduce
production costs while maximize the productivity of their labor
and land if they expect to maintain competitive pricing without
eroding their bottom line.
With the advance procurement process complete the PA needs only
to maintain communication with the vendor relaying any changes
in the work schedule, (moving up or delaying anticipated
delivery dates), changes in material (species or container
sizes), changes in the structure of the trees and shrubs needed
(single or multiple trunk) or quantities.
The final
phase of the purchase process involves scheduling the delivery
of trees and shrubs to the job. Advance notice of 3 to 4 days to
arrange a delivery is ideal but not always possible. Deliveries
range from simple (off-loading trees with a backhoe from a
flatbed) to complex orders requiring special coordination (trees
placed using a crane or equipment that may interrupt traffic
flow or cause congestion). Letting the grower know about any
special conditions associated with the delivery, anticipated
arrival time of other essential equipment involved in unloading
or planting, any local restrictions regarding hours of
construction work, start and quitting times for your crew, any
unusual traffic conditions along with detailed directions to the
construction site and a job contact phone number, ideally
someone onsite the day of the delivery, will help eliminate
confusion and avoidable delay.
If the last decade has taught us anything it is that efficiency
and productivity are essential to profitability and customer
satisfaction. In an industry like our where one of the primary
construction materials are living plants contractors will rely
on growers in order to optimize their potential productivity.
With sufficient lead-time and effective communication between
landscape contractors and plant vendors, both can profit from
the resulting increased productivity made possible by this high
level of organization and cooperation.