Abstract

The main driver behind the adoption of supply chain management (SCM) philosophy into the construction industry was the successes within other industry sectors. SCM can be defined as network of different organisations, linked upstream and downstream in a chain, aiming to produce quality and value in the services and products for the end consumers through integrated processes and activities. In order to achieve the optimised level of integration of the whole supply chain, the industry has responded in various forms. This paper will discuss different initiatives by the researchers,construction industry,and the UK government in order to achieve optimal level of supply chain integration. This paper will discuss the concept of aggregation,and also look at other supply chain integration related concepts including client-led supply chain, knowledge about the whole supply chain, effects of procurement on integration of supply chain, etc. The paper will give a brief overview and initial findings of a project undertaken by the authors, and also include examples from the UK construction industry on bundling of the supply and demand.

Highlights

  • A REVIEW OF SUPPLY CHAIN MANAGEMENT IN CONSTRUCTIONSince the middle of the 1990's, the researchers and practitioners within the construction industry have moved towards Supply Chain Management (SCM) philosophy in order to make construction industry more effective and more efficient

  • One of the features of the integrated construction supply chain is that they are centrally coordinated and the relationship between firms is maintained for the duration of a specific project and beyond. These chains are directed towards the minimisation of transaction costs, and towards enhancement and transfer of expertise between all the parties (Vrijhoef and Voordijk, 2003).This paper will review the literature related to the construction supply chain integration; efforts in the form of current reports; industrial practices in order to achieve supply chain integration within construction industry; and will give a brief overview and initial findings of a project undertaken by the authors at the Scri Research Centre at University of Salford

  • supply chain management (SCM) can be defined as network of different organisations, linked upstream and downstream in a chain,aiming to produce quality and value in the services and products for the end consumers through integrated processes and activities

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Summary

Introduction

A REVIEW OF SUPPLY CHAIN MANAGEMENT IN CONSTRUCTIONSince the middle of the 1990's, the researchers and practitioners within the construction industry have moved towards Supply Chain Management (SCM) philosophy in order to make construction industry more effective and more efficient. They are of the opinion that the collaborative culture is made up of number of elements including; external and internal trust;mutual pain and gain, information exchange in the supply chain, transparency and quality of information flow, communication and understanding,effective cross-functional activities and process alignment; joint decision making;use of measures to assess the performance of the whole supply chain, commit resources at the early stages of project development process, intra- and inter­ organisational support, corporate focus on SCM, demonstration of a business case for collaboration, and a notion that collaboration does not need to be based on technology.One of the ways to bring collaboration and integration within the industry is through aggregating the supply and demand, which would result into enhancing the collaboration among the construction firms.

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