Supply Chain Improvement in Construction Industry

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.