DRG’s Corporate Procurement Manager, Sarah Cox, talks procurement challenges post-COVID, tariffs, and the importance of her strong industry relationships in navigating today’s purchasing issues.
What challenges have you been seeing in procurement since COVID? COVID caused an almost overnight change in how the world sends and receives goods. Between the diminished labor force and wide-reaching supply chain issues, procurement professionals must be adaptive and creative in managing projects. We saw significant price increases, especially with freight, and exceptionally long lead times. Unfortunately, we have not returned to preCOVID pricing levels, but thankfully, lead times on most items have come back down. The most important thing I have learned from working through COVID is that we must be open to innovative solutions, stay up-to-date on all global issues that could be damaging to the supply chain, and stay well networked in our industry so that we have allies in finding solutions to any potential problems.
How are tariffs affecting purchasing, logistics, and sourcing? The tariff issue is one I get dozens of emails about weekly. We are entering a new period of market uncertainty, and much like during COVID, we need to stay adaptive and creative in dealing with these challenges. We are relying heavily on our domestic manufacturing partners at this time. We still need to import some products, but we are trying to keep those to a minimum to keep costs down for our clients. We have also been working to find new resources for products so that we can stay competitive in both pricing and design.
Tell me about a notable challenge you’ve had and how you addressed it. The most exciting, and often most stressful day of the procurement process is installation day. Many factors must align for a successful install. The site must be adequately prepped, and all trades must show up fully prepared, on time, and ready to work. While this goes right most of the time, we have faced many interesting challenges on install days from fire alarms blaring, losing power and access to elevators, and even a truck fire during a delivery. The most notable challenge happened a couple of years ago. On day 5 of a huge installation, we were almost ready to wrap up this project. We had placed some of the furnishings the day before, including two oversized custom rugs. When we returned the next morning, we saw that there had been a flood overnight, and water was leaking from the ceiling onto the rugs. The client was due on site that afternoon, expecting a near-complete install. Thankfully, we scheduled a water remediator quickly, got with the GC to identify the leak and stop it, and got everything dried and set before the client arrived. The most important lesson in doing what we do is to be adaptable in any situation. Even the bestlaid plans can go awry, as we deal with many factors beyond our control. That is where our experience is a tremendous asset. We know how to remain calm, identify the problem, and work quickly towards a solution.
Procurement faces ever-evolving challenges, and relying on my industry relationships is the best way I know to navigate these challenges.
How do you work to maintain industry knowledge while developing and maintaining strong industry relationships with designers, developers, and reps/ vendors? One of the most important apects of my job is staying up-to-date on changes in the industry. I rely heavily on my trade partners, as they are most dialed in to how today’s economic landscape affects our business. The biggest asset I have is the relationships I have formed with them. I make a conscious effort to develop my network with all players in the business, be it designers, developers, manufacturers, or sales reps, and attend trade shows as frequently as possible. This allows me to expand the lines we work with and learn about any updates from current vendors. I also make a point to attend seminars related to procurement, which allows me to connect with my peers, hear their struggles, and gain insight into how they are working to overcome the same issues I am facing. Procurement faces ever-evolving challenges, and relying on my industry relationships is the best way I know to navigate these challenges.
What’s the typical procurement process look like with DRG? The procurement process generally follows the same steps. The first step is reviewing the floor plan and preliminary budget from the design team for client approval. This ensures we are all aligned before the design team specifies actual pieces about 8-10 months from the estimated install date. Once the design team has specified the package, I will price it out and the lead designer sends it out for final client approval.
The second step is when the client signs the procurement contract and issues the deposit payment. This is when the purchasing process begins. The initial ordering takes about 1-2 weeks, between submitting the purchase orders (around 150 orders for a typical clubhouse), reviewing vendor communication, and verifying details on the order acknowledgements. Each week, I review all orders and check their status to make sure there are no issues or delays.
The third step, as we get closer to project completion, I coordinate install dates with the design team, warehousing and installation teams, and any specialty trades, like art installers, drapery and banquette fabricators, and game table installers. The goal is to have these done at the same time. Post-install, my responsibility is to handle any damage claims or punch items promptly.
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