Supply chain management in construction

Abstract

Supply Chain Management (SCM) encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers[1]. Until now, in construction, initiatives belonging to the domain of SCM have been rather partial covering a subset of issues (e.g., transportation costs) in a limited part of the construction supply chain (e.g., the construction site)[2]. While SCM generally focuses on the volume production, SCM in construction has to take in consideration the logistics of materials and specialized engineering service for specific construction projects. A changin global business environment with increased competition, has developed new challenges regarding SCM and new solutions with likes of lean construction.

1 Supply chain management terms and glossary 2 Balwani, Mukesh. (2014). Supply Chain Management in Construction.