Supply chain management and operational efficiency in affordable housing: An integrated review

Abstract

Effective supply chain management (SCM) and operational efficiency are critical to the successful delivery of affordable housing projects. This integrated review explores how SCM and operational practices impact the development and sustainability of affordable housing, highlighting strategies that enhance project efficiency and cost-effectiveness. Supply chain management in affordable housing involves coordinating the flow of materials, information, and services from suppliers to construction sites. Efficient SCM ensures that resources are delivered on time, within budget, and to the required quality standards, which is crucial for maintaining project schedules and controlling costs. Key components of SCM in this sector include procurement, logistics, inventory management, and supplier relationship management. Effective SCM practices help mitigate risks related to delays, cost overruns, and quality issues. Operational efficiency in affordable housing focuses on optimizing construction processes, minimizing waste, and enhancing productivity. This involves adopting best practices in construction management, such as lean construction techniques, modular and prefabricated building methods, and advanced project management tools. Operational efficiency also extends to the management of workforce resources, ensuring that labor is effectively utilized and that productivity is maximized. The review integrates insights from various case studies and industry reports to illustrate how SCM and operational efficiency practices can be applied in affordable housing projects. For instance, the adoption of just-in-time inventory systems and the use of technology for real-time tracking and coordination have proven effective in reducing costs and improving delivery times. Additionally, lean construction methods have demonstrated their potential in enhancing project efficiency and reducing waste. However, challenges remain, including supply chain disruptions, fluctuating material costs, and coordination issues among stakeholders. Addressing these challenges requires a collaborative approach, involving stakeholders such as developers, contractors, suppliers, and policymakers. In conclusion, effective supply chain management and operational efficiency are essential for the successful development of affordable housing. By adopting best practices and leveraging technology, stakeholders can improve project outcomes, reduce costs, and enhance the overall efficiency of affordable housing projects. This integrated review underscores the importance of SCM and operational practices in achieving sustainable and cost-effective housing solutions.