In addition to the post earlier, here is an alternative summary of the possible factors that could have contributed to the collapses of Australian construction companies:
1️⃣ Economic conditions: Such as a recession or slow economic growth, can reduce demand for construction services and make it more difficult for companies to secure new contracts and projects.
Happening and hovering wars, bad weather conditions and Covid, all are impacting the broad economic conditions enormously.
2️⃣ Cost overruns: Construction projects are often complex and can face unexpected challenges that can cause cost overruns. If a company is unable to manage these additional costs, it may struggle to complete projects profitably.
3️⃣ Poor project management: Effective project management is essential for the successful completion of construction projects. Companies that are unable to manage projects effectively may face delays, cost overruns, and damage to their reputation.
4️⃣ Insufficient cash flow: Construction companies often require significant amounts of working capital to fund ongoing projects. If a company does not have sufficient cash flow to cover its expenses, it may struggle to complete projects and meet its financial obligations.
5️⃣ Legal or regulatory issues: Construction companies must comply with a range of legal and regulatory requirements. Failure to do so can result in legal action and financial penalties that can put a company under financial strain.
Learning from others' failure, top management of a running company can reflect on and identify issues that are relevant and annoying.
The next is to do rigorous reverse engineering, summoning the necessary resources and wisdom to work out effective solutions!
For the above, supply chain management where applicable could influence directly and indirectly in a big way on a company’s:
⋅ Cost management
⋅ Project Management
⋅ Cash flow
⋅ Legal risks management
A sound and healthy supply chain could build intrinsic energy and resilience to support a company’s fight against poor economic conditions too.
On supply chain management, we are sharp and quick from comprehension to solution design against a company’s supply chain/procurement issues.
Very often we see what people may not recognise, and we design the solutions that bring a profound positive effect to clients’ businesses, which could be well beyond expectations.
Some people said we are playing big. Maybe.
We simply hope to help and assist to solve the difficult situations with our expertise in supply chain management.
🤝 Camel would like to be part of your solutions for getting better and stronger!
Note: Individual cases of company collapse could have unique factors that contributed to their failure.
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