Think Vendor Rating Reviews Are Not Important To A Home Builders’ Bottom Line – Think Again
Think Vendor Rating Reviews Are Not Important To A Home Builders’ Bottom Line – Think Again
Fundamentally, the purpose of a vendor rating review is to ensure home builders are receiving the best
possible supplier performance and value for their organization. The advantages of a trade striving for
“best-in-class” classification with a builder are clearly obvious. But can good vendor ratings truly benefit
the home builder’s bottom line in this economy? The answer is a rousing yes!
Rising interest rates and record real estate prices are making it nearly impossible for many Americans to
buy a home. This in turn could possibly give builders pause, wondering if they will be able to sell a home
when it is eventually built.
The Catch 22 – the main reason home prices have risen so much in the last year is that this country is in
the midst of a historic housing shortage. According to Freddie Mac, the United States is about four million
homes short of what is needed to keep pace with demand.
So what can suppliers do to help? After all, we are in this together. The short answer is to stop seeing
ourselves as vendors and essentially start acting as business partners. Start by implementing improved
quality, better responsiveness, upgraded communications and other major KPIs. By doing so, everyone
will see higher profits and ultimately be able to serve customers better.
Lennar Homes Raleigh recently performed a quarterly rating review with the Performance Point Team in
Raleigh, evaluating quality/code inspections in five very specific areas:
(1) Adherence to production
(2) Adherence to quality inspections
(3) Communication
(4) Quality and readiness
(5) Field Supervision
Performance Point received one of the highest scores of 2022. Raleigh Regional Manager Rodrigo
Torres attributes the success of the Raleigh field team to consistently delivering quality inspections plus
understanding that top performance is essential to the home builder’s smooth operation and profitability.
Lennar has a partner indeed.
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