Supply Chain Improvement in Construction Industry

Abstract

In a very competitive and complex industry like the construction industry with demands for the delivery of top quality projects at very competitive prices, a significant need for an effective management of the construction supply chain has arose. Construction Supply Chain Management (CSCM) is a very promising approach to successfully achieve integration between the several disciplines of the chain (i.e. internal and external suppliers, designers, vendors, contractors, subcontractors and internal and external clients). Big international construction companies have carried out extensive research and developed computer based platforms to experiment the recent Supply Chain Management (SCM) concepts. Even though SCM in the manufacturing industry has been widely researched and developed, the application of the same concepts to the construction industry shows problems in construction supply chains are extensively present and persistent. Analysis of these problems has shown that a major part of them originate at the interfaces between the various disciplines or functions and the complex nature of the construction environment. The aim of this research study report is to provide a set of propositions for improving construction supply chain management such as benchmarking, improvement of suppliers/subcontractors performance, elimination of waste, training and information sharing between parts of the supply chain. The study includes the literature review regarding the trends of the supply chain management in construction industry, the specific characteristics and problems in coordinating construction supply chain and finally it suggests improvements in supply and demand management based on integration, collaboration, information sharing and trust.

Ordering Strategy Analysis of Prefabricated Component Manufacturer in Construction Supply Chain

“…All the previous assumptions still apply but since it is one-off order strategy, = 1. The term "one-off" is used to replace "every" in formula (1). Then the formula of total inventory cost of the construction material supplier and demanders for one-off order is obtained.…”

“…Analysis of these problems has shown that a major part originates from the interfaces between the various factors or functions and the complex nature of the construction environment [1]. The prefabricated manufacturers produce components according to the split design and deepening design of architectural drawings, then deliver the products to the construction site, and finish assembly.…”

Interorganizational relationships in the Brazilian construction industry supply chain

“…The implementation of the philosophy for supply chain management has been investigated as a strategic measure to improve organizational performance of the construction companies (Bondinuba et al, 2016). Integration and coordination of the supply chain is essential to successfully execute projects of construction, and achieve possible cost reduction, maintain margins, competitive advantage, on-time delivery and of better underlying value for the client, improvement in productivity, value creation, higher trust in long-term planning and better relationships between parties (Isatto et al, 2015;Papadopoulos et al, 2016;Xu, & Zhao, 2017).…”

“…However, the construction sector is traditionally behind the times regarding management when compared to other industries, and this includes traditional structures (social, cultural, and political) that revert to low productivity and weak performance (Meng, 2012;Jeong et al, 2013;Papadopoulos et al, 2016). In Brazil, the buildings subsector is characterized by the low efficiency in production, unsatisfactory quality, lack of desire for modifications, use of a low-skilled workforce and high turnover of staff (Mello & Amorim, 2009).…”

Industry 4.0 and Construction Supply Chain Management

“…The construction supply chain management is a technique applied in achieving integration between the several elements of the construction chain such as vendors, contractors, designers, clients, and direct suppliers (Papadopoulos et al, 2016). Construction supply Chain management helps to balance the information, cash, and material flows among set of construction companies to create value for their internal and external buyer (Xue et al, 2007).…”