The MLOG Impact: Alumni Profiles
Matt Sanders, MLOG '01

Why would someone with a supply chain background work for a homebuilder? Matt Sanders (MLOG 2001) asked himself the same question seven months ago, when MDC Holdings invited him to join its Operation Strategy Group in Denver, Colorado.

MDC is the parent company for Richmond American Homes, one of the top ten national production homebuilders in the United States. It has 25 operating divisions nationwide, and the company expects to build about 13,000 homes nationwide this year. "The company wants to get smarter about its supply chain," Matt says. "It's a huge industry with many layers in the supply chain, and our job is to find ways make it more efficient."

However, the task of increasing productivity and consistency in the home building business comes with a unique set of challenges. Like most homebuilders, Richmond American relies on third-party suppliers for services and materials. "We don't own inventory or trucks. Contractors like plumbers and roofers are not our employees. It's a complex web of outsourcing and thus we have less control over the finished product than a typical manufacturer," explains Matt. "Because the construction industry is lower tech than other industries, most industry partners are just starting to apply supply chain concepts to purchasing and construction operations."

Another complicating factor is the organizational structure of the company. "From the national to the local level, we are all working on similar projects, but our processes are all different," Matt says. Right now, his group is working on projects dealing with business process and data standardization throughout the company, as well as purchasing cost reductions and supplier consolidation. "We're just scratching the surface and already we're seeing big benefits. There's no telling how far we can go."

The excitement of helping to deconstruct the homebuilding supply chain is enough to keep him with MDC for a while. "We've just started to solve some really exciting problems," shares Matt. And he knows the challenges will keep coming. "Once we demystify our supply chain, we can use that knowledge to determine the points of greatest leverage for the homebuilder and give our company a huge advantage over its competitors."

Matt realizes it will be a huge task, but says his training at MLOG has prepared him for projects exactly like this. "It never fails to amaze me, when a problem is discussed and I realize we addressed similar concepts in MLOG classes. I have referred back to class materials more than once to help me work towards a solution."

Matt and his wife Michelle have lived in Boulder, Colorado for the past 2-½ years. You can contact Matt at mrsanders@mdch.com.

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