The construction supply chain is of temporary nature and complex, with many interactions between multiple actors in different construction projects. This challenging context typically leads to relatively higher costs and lower productivity, compared to other industries. Supply chain management (SCM) has been put forward as a mean to better handle this challenging context. As a part of SCM initiatives some construction industry stakeholders have turned to third-party logistics (TPL) providers, especially in large construction projects. The use of TPL providers is a new, and under-investigated, phenomenon in the construction industry. The main purpose of this study is thus to explore the use of a TPL provider in a large construction project and to analyse its resulting effects. Driving forces and possible concerns for implementing TPL are identified and the possibility for TPL to be a facilitator for implementing SCM in construction is investigated. The research is based on a literature review and an explorative case study of a large hospital project in Sweden, where the client and the main contractor have initiated the use of a TPL provider to coordinate sourcing and materials handling activities on site. The results show positive effects on establishing an effective interface between the construction site and the supply chain. The results also show that a TPL solution facilitates an increase in productive work at the construction site itself, a reduction of costs and an increased utilisation of site assets. On the downside, the study also shows a lack of SCM knowledge amongst the involved actors in the project, hindering them to reap the full potential of TPL.
Suppliers and transport service providers are key parties in the construction supply chain, and their respective roles when employing a construction logistics setup based on third-party logistics are investigated. The use of construction logistics setups is an ongoing trend for large and complex construction projects and previous research has mainly focussed on the downstream actors. The purpose is to explore how suppliers and transport service providers in the construction supply chain are affected by the use of dedicated and project-specific construction logistics setups outsourced to third-party logistics providers in construction projects. The upstream actors’ attitudes towards and experienced effects from construction logistics setups operated by a third-party logistics provider, as well as their level of supply chain management maturity are studied in an explorative case study of a large construction project. Results show positive attitudes and that suppliers and transport service providers actively address supply chain management issues, whereas actual effects of the construction logistics setup on upstream actors, in this case, are inconclusive. Yet, the analysis indicates that a third-party logistics provider can assume the role of a systems integrator in the construction supply chain, balancing, and possibly, integrating the supply chain with the construction site.
Higher expectations on supply chain performance force organisations to reinvent themselves in order to cut costs and increase customer service, all to gain competitive advantage. Pursuing the best network of manufacturing, supply and distribution facilities relative to the marketplace is therefore on top of many managers’ ‘most wanted’ list concerning supply chain management. Supply chain planners are thus in need of decision support to be able to establish feasible and sufficient plans. This article discusses how decision support through advanced planning systems (APS) can assist tactical supply chain planning. A case study is presented showing how APS can act as an enabler in adapting logistics and supply chain principles, as well as reducing costs through streamlining the supply chain. The purpose of this article is primarily to present findings from a case study regarding supply chain planning with the aid of a master planning APS module. The case study emphasises that APS in the scope of logistics management have several positive effects on supply chain performance.
16 September 2020 in Production Planning & Control
Third-party logistics (TPL) arrangements are becoming a regular occurrence in urban construction projects. The industry is, however, still apprehensive regarding the effects that TPL arrangements bring. The purpose of this study is therefore to investigate the effects that can be realised when employing a logistics arrangement in construction, including possible benefits, concerns, and effects on cost elements. The purpose is fulfilled through a case study of a large construction project in Sweden that has employed a TPL arrangement. Results show that there are positive effects to achieve in terms of logistics performance and project performance, but that the main challenge to achieve these effects is to include all supply chain actors to reach a higher level of SCM maturity. This inclusion can be achieved through a better dialogue amongst supply chain actors to create an understanding for why TPL is employed and why policies and regulations needs to be followed.
Performance management systems (PMS) are essential instruments for the evidence-based management of on-site production within the industrialized housebuilding (IHB) sector. The information required for more evidence-based decision-making is determined by the business strategies and should be reflected in the design of the PMS. The aim of this study is to clarify, report on and analyze the influence which different strategic orientations have on the PMS. For this purpose, a multiple case study was conducted within the IHB sector of Austria, Germany and Switzerland. The findings revealed those business strategies which led companies to develop specific features within their PMS and showed which specific indicators are relevant for managing on-site performance. In addition, the findings identify weaknesses in performance measurement but also best practice examples. Based on the findings, a differentiated approach towards the ongoing refinement of PMS is suggested, allowing management to be more focussed on strategic objectives.
13 February 2022 in Construction Management and Economics
Measuring the performance of construction site processes is an essential for the continuous improvement in building production efficiency. However, little is known about how this is done by industrialized housebuilding (IHB) companies. The purpose of this paper was to extend the body of knowledge of IHB to on-site performance measurement and management (PMM), thereby identifying reference practices and potential areas for improvement in order to prepare the field for the further development of significant performance management systems (PMS). A multiple case study by means of semi-structured interviews with company managers of eight companies within the IHB sector from three Central European countries has been conducted. The results show that the companies, to a greater or lesser extent, collect data on: customer satisfaction, environmental protection and CO2 emissions, operating efficiency, productivity, quality and work safety. The data can be used to perform performance measurements that provide feedback on these criteria. Reference practices of performance measurements and their benefit are identified. Digital tools are increasingly being used for data collection on construction sites, although paper-based tools such as site and working time reports are still in use. The findings establish a basis for the further development of PMS within the IHB sector.