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Optimizing B2B Supply Chains in Construction: Leveraging Technology for Efficiency
In Poland, the cost of energy and raw materials accounts for more than half of the final cost of certain goods and materials that are frequently used in construction1. The Polish construction market was valued at $136.9 billion in 2022 and is expected to grow at an annual growth rate (AAGR) of more than 2% from 2024 to 20272. In a survey of the biggest companies in the sector, 48% and 40% of respondents said that supply chain disruptions had caused delays in material deliveries or the inability to obtain materials, respectively, impacting Poland's construction industry. Timely, efficient procurement of materials is therefore critical for the Polish construction industry3.
This article explores the use of technology to improve procurement efficiency in the Polish construction industry. It will discuss the challenges faced by construction companies in acquiring raw materials and how technology can help address these challenges.
Key procurement challenges for Polish construction companies
Polish construction businesses deal with several difficulties when acquiring raw materials.
Among them are:
- High Costs and Price Spikes: The acquisition of energy and raw materials accounts for more than 50% of the final cost of some goods and materials that are frequently utilized in Polish construction1. Furthermore, in recent years, there have been several price spikes for raw materials on the market, forcing businesses to raise their prices.
- Material Shortages: As a result of supply chain interruptions brought on by the COVID-19 pandemic and the ongoing conflict in Ukraine, a record number of contractors are experiencing material shortages4.
- Disruptions to the Supply Chain: Limited availability of building supplies and raw materials, coupled with exorbitant costs, impedes construction endeavors5.
- Inflation and Rising Employment Costs: Inflation and rising employment costs were indicated as the greatest challenges for economic activity in 2022 by 35% and 23% of companies, respectively6.
These difficulties have resulted in higher expenses, longer project timelines, and lower profitability. What can be done about it?
Two primary solutions: diversification and technology.
Polish construction companies have reacted to these challenges in several ways, including strategic hoarding, contract renegotiation, and investing in domestic production. But we think there are two areas where there is the most potential:
- Supplier Diversification: To lessen dependency on a single source and lessen the effects of supply chain interruptions, businesses should expand their supplier bases.
- Introduction of Technology: Businesses can better manage and anticipate disruptions and shortages of raw materials thanks to the introduction of technology, such as supply chain management systems and real-time tracking.
Ivan Hruska
28th August 2025
Business
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