Logistics simulation modelling across construction supply chains

Abstract

PurposeThe purpose of this paper is to present a logistical analysis of construction supply chains by assessing the impact of varying demand on the performance of builders' merchants' logistics.Design/methodology/approachTaking into consideration that the vast majority of construction materials are distributed through intermediary organisations, the paper focuses on the logistics of builders' merchants. The study follows a field study approach to develop a conceptual logistics model facilitating experimentation using simulation modelling.FindingsThe paper highlights the importance of incorporating intermediary organisations in the study of construction supply chains and reveals the implications of varying demand on logistics performance related to inventory and transportation costs.Research limitations/implicationsIn order to limit assumptions associated with individual company characteristics, the sample has included data from one builder's merchant company. To allow external benchmarking, the suggested approach has to be applied to a wider sample.Practical implicationsThe paper provides a practical understanding in terms of the function of intermediary organisations in construction supply chains and the application of logistics management in construction.Originality/valueConsidering the complexity involved in construction supply chain operations, the value of this research is twofold. First, the research contributes to an interdisciplinary approach to the study of construction supply chains and second, provides a risk‐free environment for modelling supply chain cost performance.