Search results
1 – 9 of 9Anders Segerstedt and Thomas Olofsson
The purpose of this paper is to introduce a special issue about the construction industry and the management of its supply chains. It aims to discuss and point to some differences…
Abstract
Purpose
The purpose of this paper is to introduce a special issue about the construction industry and the management of its supply chains. It aims to discuss and point to some differences and possible similarities with traditional manufacturing and its supply chains.
Design/methodology/approach
The paper is mostly a literature review and contains official statistics.
Findings
The market of the construction company is mostly local and highly volatile. The long durability of the construction “product” contributes to the volatility. The product specification process before the customer order arrives shows different degrees of specifications: engineer to order, modify to order, configure to order, select a variant. (The common make‐to‐stock in traditional manufacturing does not exist.) A construction company only executes a small part of the project by its own personnel and capacity. This is a way of risk spreading and risk mitigation and to compensate for an unstable market. If a construction company wants to establish a new concept, from “engineer to order” to e.g. “configure to order”, it must be engaged earlier in the business process and with other than usual customers, which might complicate the process.
Research limitations/implications
Experiences from Sweden and Swedish developments are the main source of information.
Originality/value
The paper introduces the articles that are a source of scientifically generated knowledge regarding various problems and opportunities associated with supply chain management in the project‐based construction industry.
Details
Keywords
Erik Levén and Anders Segerstedt
Polarica is a company in northern Europe buying, refining and selling wild berries and other specialty foods. During the last couple of years the volume of wild berries, mostly…
Abstract
Polarica is a company in northern Europe buying, refining and selling wild berries and other specialty foods. During the last couple of years the volume of wild berries, mostly blueberries, has increased a lot. This expansion forces Polarica to consider investments in freezing‐in capacity and cold‐storage capacity. A simple heuristic model was constructed, from which it was concluded that additional volumes of frozen blueberries require more storage facilities and it was also recommended that the location should be based on load‐distance analysis. The way this problem is tackled and solved can be copied and hopefully it presents ideas for other similar studies.
Details
Keywords
Improving construction supply chain collaboration and performance is central for achieving short‐term business objectives as well as long‐term competitive advantage. Lean thinking…
Abstract
Purpose
Improving construction supply chain collaboration and performance is central for achieving short‐term business objectives as well as long‐term competitive advantage. Lean thinking is an approach that has been adopted in many different industrial settings as a means for improving supply chain performance. In the project‐based construction industry, lean thinking has, however, not yet been widely adopted. The purpose of this paper is to increase the understanding of how various aspects of lean thinking can be implemented in a construction project and how they affect supply chain actors and their performance.
Design/methodology/approach
Action research was performed in a case study of a lean construction pilot project. Empirical data were collected through three surveys and follow‐up workshops, document studies, and interviews of 12 project participants.
Findings
The findings show that many of the lean‐related aspects identified in the literature review were utilized in the pilot project. These aspects have mostly focused on increasing the cooperation among supply chain actors, for which reason the pilot project is very similar to a partnering project. Hence, much work remains in order to obtain full‐fledged lean construction, but the pilot project may serve as a starting point for continuous improvements and development of lean construction in future projects.
Research limitations/implications
The research results are based on one empirical case study for which reasonable generalisations could be made, albeit cautiously.
Practical implications
The frame of reference can serve as an illustration of important aspects and core elements of lean construction and the case study findings show how various lean related aspects can be implemented and how they affect supply chain actors and their performance in a construction project context.
Originality/value
The action research approach based on both qualitative and quantitative data collection in a lean construction pilot project provides a valuable opportunity to study both the process of implementing lean construction and its outcomes.
Details
Keywords
Charlene Xie, Dash Wu, Jianwen Luo and Xiaoling Hu
The increasing “globalisation” and complexity of construction design implies that the project team may involve subcontractors in the construction supply chain from widely…
Abstract
Purpose
The increasing “globalisation” and complexity of construction design implies that the project team may involve subcontractors in the construction supply chain from widely distributed geographic areas. Thus communication is a vital process for the design. The aim of the present work is to investigate how construction design under supply chain partnering can be improved through a study of communication issues and problems.
Design/methodology/approach
A questionnaire survey is initially conducted to investigate communication issues and problems in construction design. Based on the survey results, a case study is carried out to gain further insights into these issues and problems, exploring how the procurement like supply chain partnering influences the multi‐team communications in construction design.
Findings
The paper finds that partnering can eliminate many communication barriers and has a positive impact on social collaboration in the design process. It could have a negative impact on the team communications if proper procedures have not been put in place. In addition, co‐location can increase the degree of interaction, communication and technical collaboration in the partnership.
Originality/value
This paper may help construction project practitioners to focus their attention on the necessary respects of multi‐team communications between supply chain partners in construction design, leading to high cooperation and ultimately improving the quality of the design outcomes.
Details
Keywords
Hans‐Martin Lönngren, Christoph Rosenkranz and Harald Kolbe
The purpose of this paper is to address the management of supply chains within the construction industry. Supply chains in this sector evidence a marked tendency to waste and…
Abstract
Purpose
The purpose of this paper is to address the management of supply chains within the construction industry. Supply chains in this sector evidence a marked tendency to waste and inefficiency. One approach to improving this situation, which is the subject of intense discussion by both scientists and practitioners, is the establishment of strategic partnerships integrated with the scientific observation of the processes involved. This paper aims to present a case study of such a strategic alliance among German building contractors whose goal it is to cover the entire life cycle of a building, from its planning to its ultimate facility management. The paper seeks to focus on the establishment and implementation of an aggregated strategic alliance and its success factors.
Design/methodology/approach
The research methodology is based on a case study of a German network of builders and trade contracting companies. Data collection tools included observation of workshops and meetings, semi‐structured interviews and access to key documentation, IT‐infrastructure and archives of the network.
Findings
Key factors of success in strategic alliances within the construction industry are: central coordination among the partners employing decentralised task management; application of an appropriate IT‐solution; and mutual trust among the cooperating partners.
Originality/value of paper
While there is growing literature in the field of supply chain management within the construction industry there is less empirical evidence providing practical examples of managing supply chains in this area. Strategic alliances are a crucial requisite for the successful management and integration of services and production within the construction industry.
Details
Keywords
Lars Bankvall, Lena E. Bygballe, Anna Dubois and Marianne Jahre
The aim of this paper is to inquire into the management of construction supply chains by directing attention toward the different types of interdependencies that exist in such…
Abstract
Purpose
The aim of this paper is to inquire into the management of construction supply chains by directing attention toward the different types of interdependencies that exist in such chains and in construction projects.
Design/methodology/approach
The paper is developed as part of two ongoing research projects on supply chain management (SCM) in construction. A case study approach is used for illustrating the production and subsequent delivery and installation of plasterboards to a specific construction project. This description reveals extensive coordination among a number of companies and features interesting examples of the consequences of the interdependencies identified.
Findings
The paper concludes that the strong emphasis on coordination of sequential interdependence within individual supply chains does not fit with the complex interdependencies present in and among supply chains and projects in construction. In addition to sequential interdependence it describes and illustrates pooled interdependence based on joint resource utilisation, reciprocal interdependence among activities undertaken at the construction site, and interdependence owing to synchronisation of many supply chains in relation to each and every construction project. The combined effects of these interdependencies challenge traditional SCM recommendations, such as moving activities from the site to the factory.
Originality/value
The main theoretical argument put forward in this paper is that the application of SCM models developed for other industrial contexts such as the automotive industry, are problematic to use in the construction industry. This is because these models emphasise integration of activities that are subject mainly to sequential interdependencies while the pattern of interdependence is very different in construction. A main implication for practice is that focusing on better planning in order to deal with activities that are mainly subject to sequential interdependence, is insufficient. The reciprocal interdependencies in construction require more frequent and direct interaction among the involved actors to enable mutual adjustments among the firms whose activities and resource use need to be coordinated.
Details
Keywords
Andreas Hartmann and Jasper Caerteling
The purpose of this paper is to examine the relative importance of price and trust and their interaction in subcontractor selection. By doing so, it aims to respond to the…
Abstract
Purpose
The purpose of this paper is to examine the relative importance of price and trust and their interaction in subcontractor selection. By doing so, it aims to respond to the currently dominant view that trust‐based procurement is the remedy to performance problems in construction. The paper also aims to argue that a specific interplay of both price and trust is always inherent to the selection of subcontracted services.
Design/methodology/approach
A choice‐based conjoint experiment was conducted to underpin the initial argument. The conjoint analysis is based on a sample of medium‐sized contractors from the Dutch residential building industry.
Findings
The research shows that neither price nor trust can be downplayed as procurement mechanisms. On the one hand, through repeated relationships main contractors become more confident in judging the performance of subcontractors. The level of trust increases and finally affects the supplier selection. On the other hand, favourable quotes are a prerequisite for trust to become choice relevant. Moreover, the extent to which subcontractors have performed with respect to quality, technical know‐how and cooperation in the past finally accounts for whether they are chosen or not.
Research limitations/implications
The joint occurrence of price and trust as procurement mechanisms should be acknowledged. More research is needed to understand the trade‐offs main contractors make between price and trust while procuring subcontracted services.
Practical implications
Subcontractors need to offer competitive bids to be able to increase their chance of recurrent relationships with main contractors and thus trust development.
Originality/value
This study is one of the first that considers the interaction of price and trust in subcontractor procurement. It contributes to the ongoing discussion around partnering and supply chain integration in construction.
Details
Keywords
Pierre Hadaya and Robert Pellerin
The purpose of this paper is to measure the influence of two categories of determinants – those tied to the characteristics of the organization and those tied to the…
Abstract
Purpose
The purpose of this paper is to measure the influence of two categories of determinants – those tied to the characteristics of the organization and those tied to the characteristics of its supply chain relationships – on construction firms' use of web‐based interorganizational information systems (IOISs) to support interorganizational processes with their key suppliers.
Design/methodology/approach
Empirical evidence is gathered through an electronic survey conducted with 67 senior managers of Canadian construction companies.
Findings
Findings indicate that both categories of determinants strongly influence each of the facets of construction firms' use of web‐based IOISs to support interorganizational processes with their key suppliers. Findings also indicate that the two facets of the use of web‐based IOISs to support collaborative processes are influenced by the same characteristics of supply chain relationships while the use of both types of web‐based IOISs are not influenced by the same characteristics of the supply chain relationships.
Practical implications
This study shows construction managers that a supply chain approach may facilitate firms' adoption of IT to support their interorganizational processes with their suppliers. This research also exposes practitioners to the different ways web‐based IOISs can be used by construction firms to support their relationship with suppliers and emphasizes the need for managers to consider the characteristics of their supply chain relationships and not only technological factors while developing and implementing their web‐based IOISs strategy.
Originality/value
This study is amongst the few empirical studies on the use of information technology to support supply chain processes between construction companies and their suppliers. By proposing an approach to web‐based IOISs measurement comprising five facets, this research also makes a theoretical contribution to the field of IOISs.
Details
Keywords
Rafaella Broft, Sulafa M Badi and Stephen Pryke
Several studies have underlined the potential of supply chain management (SCM) in meeting the formidable challenges associated with fragmentation, adversarial relationships and…
Abstract
Purpose
Several studies have underlined the potential of supply chain management (SCM) in meeting the formidable challenges associated with fragmentation, adversarial relationships and insufficient customer focus in the delivery of construction projects. However, properly documented examples of successfully implemented SCM initiatives, particularly at the lower tiers of the supply chain, are scarce. The purpose of this paper is to extend the existing debates by adopting an alternative approach focusing specifically on the internal SCM organisation of both main contractor and subcontractor organisations, and their direct inter-relationships.
Design/methodology/approach
This study sets out to explore the enablers and barriers to the implementation of SCM at the lower tiers of the construction supply chain, particularly the problematic collaboration between main contractors and subcontractors. SC maturity levels are formulated according to relevant SCM concepts and based on Holti et al.’s (2000) seven principles of SCM organisation, and transformed into a conceptual model. An explorative study is conducted based on interviews from eight large main contractor and subcontractor organisations in the Dutch construction industry.
Findings
Discouragingly, across the organisations, more barriers than enablers to SCM are identified. Organisations are found to be particularly struggling to compete through superior value, manage costs collaboratively, and develop continuous improvement within their supply chains. The findings also underline the low SC maturity of main contractors and their inability to play the essential role of supply chain managers.
Practical implications
The study underlines the need for a greater degree of main contractor leadership and improved internal organisation of both types of firms in order to achieve greater collaboration at the lower tiers of the construction supply chain.
Originality/value
The study contributes to the subject of SCM in construction in two respects. First, the findings should prove valuable to both policy-makers and industry practitioners interested in the delivery of performance improvement in construction. Second, the developed SC maturity model can form the conceptual basis for the development of an applicable improvement framework towards successful SCM implementation.
Details