Construction logistics in urban development projects – learning from, or repeating, past mistakes of city logistics?

Abstract

PurposeThe construction industry is reluctant to utilize construction logistics centres (CLC). To understand why, the purpose of the study is to increase the understanding of drivers and challenges of CLC utilization.Design/methodology/approachAdopting an activity-based cost methodology, nine construction projects' CLC utilization in a Swedish urban development project is analyzed for a time period of three years (2013–2016).FindingsThere is a difference between drivers and challenges for implementing and utilizing CLCs, which are often implemented to reduce third-party disturbances. The drivers to utilize a CLC, however, stem from achieving efficient logistics. The authors identify two different utilization strategies; the CLC is used either for just-in-time (JIT) deliveries or as a consolidation point.Research limitations/implicationsThe study shows that construction logistics is to some extent repeating some mistakes of its big brother, city logistics. The study hypothesizes that there are differences between CLC implementation and utilization drivers and challenges that are often overlooked, which can explain the lack of CLC utilization.Practical implicationsThe study shows that it is crucial for construction projects to develop and formulate a logistics strategy for how to utilize the setup, i.e. deciding whether to use the setup as a consolidation point leading to fewer deliveries and more materials on-site, or as JIT, leading to more deliveries but fewer materials on-site.Social implicationsCLCs can reduce environmental impact and third-party disturbances. However, to make this come true, acceptance among the users is needed. The study provides understanding of drivers and barriers for CLC implementation and utilization that can increase acceptance among users (i.e. construction projects).Originality/valueThe current study is one of the first studies to analyze CLC utilization.