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.
Highlights
Chain Management (SCM) has been widely analyzed in the academic literature related to operations management
The purpose of this paper is to propose some methods for improving construction supply chain management
Some of the major benefits that construction organizations can achieve by applying Supply Chain Management (SCM) principles are: reduced real costs, with margins maintenance, incentive to remove waste from the process, competitive advantages, greater certainty of out-turn costs, delivery of better underlying value to the client, on time delivery, productivity improvement, value creation, more repeat business with key clients, greater confidence in longer-term planning and better relationships between parties
Summary
Chain Management (SCM) has been widely analyzed in the academic literature related to operations management. Most of research is focused on quantitative and qualitative approaches. Quantitative modeling is applied to inventory management, demand forecasting and routing optimization. These studies are highly related to data analysis from case studies in manufacturing processes. Qualitative, managerial or soft aspects of SCM are usually related to the definition of frameworks, which are applied within industry and after that are validated through empirical research. Such frameworks are usually applied in performance measurement, strategic planning and governance in SCM
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