Monday, April 14, 2008

Supply Chain Management

Home Properties as a real estate service company does not have a typical supply chain process. The apartment and townhouses are physical goods which are a project process selection decisions. Turnover rates are high for the apartment communities. To make those apartments ready for occupancy, the company has to follow a supply chain system. They have to order paints, cabinets, appliances, and other various supplies. The suppliers are in contact with the contractors who are in touch with the maintenance group of apartment communities. They make sure the apartments are ready by the time new resident come in by having all materials and supplies in the stock/maintenance rooms. For some supplies they use just-in-time method like cabinets, faucets, carpet, etc. and for others they have in stock like paints, appliances, cabinets, etc.

Once the apartment is inspected and ready to occupy maintenance workers are responsible to hand over the keys of that apartment or townhouse to the manager. A manager is the middle person is acting between leasing consultant and maintenance. The manager is in charge of putting the apartment on the market and giving the availability to the leasing consultant to rent. The manager acts as the warehouse while the leasing consultant acts as a retailer in the supply chain management cycle. Leasing consultant are also sales people who are responsible to rent the apartment to the new prospects or residents.

Being a service company they also use supply chain management. The suppliers are the ones who are making sure the supplies reach the contractors or the apartment communities. Home Properties outsource to the contractor to make the apartments ready to occupy. They also outsource surrounding area contracts like landscaping, snow removable, tree cutters, etc. So the contractors are the suppliers of the communities. The maintenance staffs of the company act as the factory people who do the over all touch ups of the apartment communities. Managers operate as the warehouse people whereas leasing consultants are retailers. Customers are the last in the supply chain management chart. They act as prospects or residents.

Delivery is a very important step in measuring supply chain performance. It is everyone’s duty to make sure that the actual product is ready and available for the prospect. Home Properties makes sure that the apartment and townhouse are all set to occupy. They want to provide outstanding customer service where no one has to wait for the apartment. If it is peak season like summer Home Properties does on-time delivery to its resident and prospects. In winter the apartments are available days before the actual move in date.

Home Properties believe in providing high quality of product and service. The pledge guarantee all the residents if they are not satisfied then they can leave within 30 days without any charge. Home Properties uses best quality of the materials in making the apartment ready. Customer service is very important in any business.

Providing quality product and service doesn’t mean higher rent. The rent and services they offer are reasonably priced and affordable to the people. Apartment costs are based on unit cost which is defined as the total manufacturing cost including materials, labor and overhead divided by the number of units. It is important for company to set a goal for measuring areas with respect to its own performance.

Time can be measured not only for an individual company but also for the entire supply chain. Home Properties makes sure that the product and service reaches to all the residents and shoppers. The more time they take to turnover the homes the more they are lowering profits. Superior customers are equal to long term relationship with the clients.

Home Properties present business to consumer (B2C) in supply chain management. Increasing in internet and e-commerce business, Home Properties is also trying to reach all their customers by internet. The company presently provides services like home rentals, credit check service, rent payment, service request, surrounding area information, etc.

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