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3 reasons for construction companies to use Canopy

With the focus on a safe and sustainable future for the built environment, Canopy helps construction companies with supplier management.

Canopy provides three key benefits to the construction sector when it comes to supplier management

We all know that the UK economy has had some severe shocks over the past decade and a half. The Covid-19 pandemic came at a time when many businesses were still recovering from the economic downturn at the start of the 2010s. For the construction sector, there’s also the backdrop of the 2017 Grenfell Tower disaster. Not only has this shaken up regulation of the industry itself, but it's also made construction companies more focused on their supply chains. And adding in the fact that these supply chains are increasingly international, this can create a level of complexity that can be difficult to navigate. In this blog, we're going to look at how Canopy provides three key benefits to the construction sector when it comes to supplier management.

What the construction sector means for the UK and beyond

Construction accounts for some 6.5% of the UK economy, with an annual £90 billion contribution to GDP. What's more, the sector employs more than 3.1 million people across the UK, including some 2.3 million contractors, which accounts for some 10% of the total workforce. Adopting digital and manufacturing technologies will transform the industry, as well as the wider built environment. But it also means that supply chains are becoming ever more complex and international. Regardless of whether construction-sector companies have international operations, the reality is that they will be dealing with a range of regulations across different jurisdictions.

Of course, there are massive challenges to making these supply chains safe and sustainable. In terms of building safety, much of the focus is on remediation works to ensure the existing building stock meets tougher post-Grenfell regulations. And along with the rest of the economy, the sector is under pressure to deliver net zero carbon across every part of its operations. There is an international recognition that there are different scopes to these emissions, depending on how directly a company can influence the level of emissions. For construction-sector supply chains, this extends to having a consistent focus on ESG criteria, to limit indirect ('Scope 3') contributions.

Canopy and the construction sector

Managing supply chains across multiple sites and buildings is a complex operation. Each site carries its own unique requirements, requiring local knowledge. So how can construction sector companies go about raising standards across the sector's supply chains? The Canopy supplier management platform can help construction companies make their supply chains more robust. We're focusing here on three key benefits.

1. Local market dynamics within centrally set rules

Canopy puts supplier decision-making in the hands of the operators on the ground, based on a centrally defined governance framework. Canopy can determine a supplier’s suitability down to a localised, site-specific level. This makes it particularly suited to companies with locally managed purchasing decisions and suppliers who require on-site access. The rules-based architecture distinguishes between local market dynamics, such as language, legislation, and local practices.

2. Ongoing risk monitoring to eliminate non-compliant trade

Canopy puts all supplier documentation into a single record, so that everyone in the business has complete visibility and trust in the management of the supply chain. Canopy hosts and manages supplier certifications, training, qualifications, insurances, and sustainability credentials centrally on the supplier profile. In-built automation ensures these credentials are monitored continuously, providing an ongoing assessment of risk and compliance beyond the initial onboarding stage. And it allows a block to be put on using suppliers until they have returned to compliance.

3. Developing a portfolio of suppliers to support ESG criteria

ESG and emissions information is an increasingly important component of supply chain management. Reporting obligations on Scope 3 emissions requires large quantities of data to be collected from a wide range of suppliers. Canopy helps to facilitate this process, providing a universal interface between you and all your suppliers, allowing for ongoing reporting, and monitoring against your ESG commitments. Category management takes consideration of all the aspects of a supplier’s activity, informing decisions about Preferred Supplier status or expanding/reducing the number of suppliers. And ultimately, that aids any efforts you're making to calculate overall aggregated emissions to meet your own ESG goals.

To find out more about how the construction sector can deploy Canopy to improve supplier management, contact one of the team today.

Post by Nick Verkroost

Nick is an experienced business leader and the COO for Canopy (OCG Software), the rules-based Supplier Management platform. Nick's focus is on commercial and operational excellence and ensuring our clients maximise the opportunities that Canopy offers.


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