Supply Chain Management and Logistics in Construction

Supply Chain Management and Logistics in ConstructionDelivering tomorrow’s built environment

A number of different authors, academics and professionals put supply chain management and logistics practices in the construction industry under the spotlight.

This is a brief overview, chapter by chapter.

Contents

IntroductionPART ONE - Strategic Perspectives01 The challenge of construction logistics02 Aggregating global products for just-in-time delivery to construction

sites03 Construction logistics - supply of bulk materials04 Effective management of a construction project supply chain05 Construction supply chain management strategy

Logistics & Operations

Contents

PART TWO - The impact of BIM and new data management capabilities on supply chain management in construction

06 Data management for integrated supply chains in construction

PART THREE - Construction logistics and sustainability 07 The role of logistics in achieving sustainable construction: a Swedish

perspective08 Resource efficiency benefits of effective construction logistics


Contents

PART FOUR - Logistics operations09 The role of the construction logistics manager10 Third-party logistics operators in construction: the role they play and

the role they could play11 Managing construction logistics for confined sites in urban areas12 Consolidation centres in construction logistics13 Delivery management systems


Chapter 01The challenge of construction logistics

The first chapter provides a broad introduction to logistics management. It explores the ways in which construction logistics differs from logistics in other industries while at the same time identifying lessons that can be learnt from sectors such as retailing and manufacturing.Some of the topics covered:• Defining logistics, understanding its importance and how it interacts with supply

chain management, purchasing etc• Transport and storage activities within logistics• The particular characteristics of construction logistics and and issues that

emerge, particularly with regard to developments in urban areas• Conclusions and key features of the challenge of managing logistics within

construction


Michael Browne

Professor of Logistics at the University of Westminster

Chapter 02Aggregating global products for just-in-time delivery to construction sites

Looking mainly at house building the author concludes that effective logistics requires kits of products to be delivered just-in-time at the right location by a logistics process integrated with the build process. To do this efficiently requires an ability to source and aggregate products globally. Some of the topics covered:• Global sourcing• Investment in procurement and centralized decision making• Environmental legislation, quality and good waste management• Lean supply onto site with plot-picked deliveryThe author then explores which players in the construction supply chain have the best ability to offer aggregation and lean-delivery capability. This discussion considers construction companies, builders merchants, third-party logistics specialists, multichannel providers and emerging web retailers.


Mark Franklin

At time of writing, Service and Supply Chain Director at Travis Perkins. Now Global Parts and Supply Chain Director at Jaguar Land Rover.

Chapter 03Construction logistics - supply of bulk materials

The largest element of the construction supply chain, bulk materials also constitute the largest material flow in the UK economy with 200 million tonnes of these materials being used in construction each year. The nature of the material supply, modes of transport and the customer base are all described. Materials covered:• Cement• Aggregates• Asphalt• Ready-mix concreteThe chapter then analyses the supply chain maturity and discusses the steps required to realize benefits of a truly integrated supply chain.


Matthew Woodcock

Head of Group Logistics and Supply Chain, Lafarge Tarmac

Chapter 04Effective management of a construction project supply chain

This chapter explores construction logistics with regard to operational, organizational and cultural factors. From a main contractor point of view and looking at a five-year horizon it proposes the changes needed to significantly improve supply chain and logistics performance.Some of the topics covered:• Defining effective logistics management and current best practice• The control of fragmented supply chains• Strategies such as prefabrication, off-site production and the use of

consolidation centresThe chapter outlines an improvement strategy and the practical, operational elements it is based on. The case is made using real-life data from recent London inner city developments.


Stephen Robbins

At time of writing, Logistics Manager at Laing O’Rourke. Now Operations Service Manager at Wilson James. Co-author of previously published authoritative book on construction logistics.

Chapter 05Construction supply chain management strategy

The chapter discusses how the role of the supply chain has grown in the construction industry. Risk assessment and the selection of supply chain partners are analysed from a main contractor point of view. Some of the topics covered:• Understanding the different types of supply chain risk• Prequalification and assessment of the different risk categories• Framework agreements• The management of logistics in constructionOne approach to developing supply chain partnerships is illustrated using a case study from Mace Business School.


Brian Moone

Director of Supply Chain Management and Development at Mace. Established and runs the Mace Business School.

Chapter 06Data management for integrated supply chains in construction

The focus here is on information exchange within the fragmented and often adversarial construction industry. Building Information Modelling (BIM) will provide processes and technology that can help build truly collaborative and integrated project teams.Some of the topics covered:• Information management in construction; complexity, BIM and data

management• ‘Big data’ - what it is, and what it means for construction• Data and the integrated supply chain: supply chain management systems• Enterprise level integrationThe authors conclude that by creating/generating data, and by using and sharing data intelligently - facilitated by BIM tools and processes - decision making will improve and the benefits of true supply chain integration can be realized.


Wes Beaumont and Jason Underwood

Wes is part of Turner & Townsend BIM and analytics team.Jason holds several senior posts within the School of the Built Environment, University of Salford, including Director of the MSc BIM programme.

Chapter 07The role of logistics in achieving sustainable construction: a Swedish perspective

Based on an eight-dimensional model for the comprehensive analysis of sustainability, a logistics strategy for sustainable construction is developed.Some of the topics covered:• A supply chain approach based on sequenced, JIT deliveries via a logistics centre

(consolidation centre)• The importance of planning, team building and admin support• Practical considerations including labelling, packaging and deliveries • Financial benefits of a sustainable approachThe approach is demonstrated in two case studies based on current highly prestigious construction projects in Sweden, one a hospital project and the other an inner city mixed development.


Monika Bubholz, Camilla Einarsson and Lars-Göran Sporre

Monika is Sustainability Consultant and Camilla is Logistics Consultant, both at Sweco Industry AB.Lars-Göran was, at time of writing, Head of Business Development, Industry and Logistics at Sweco; now Senior Vice President and head of the Industry Division of COWI AB.

Chapter 08Resource efficiency benefits of effective construction logistics

The chapter sets out the environmental impacts of construction and shows where effective construction logistics can improve the overall sustainability of a construction project. How good logistics practice can improve performance is illustrated with strategies relevant for all participants in the supply chain.Some of the topics covered:• Transport• Reverse logistics• Packaging• Off-site manufacturing• Just-in-time delivery • On-site logistics specialists


Malcolm Waddell

Project Manager with WRAP where he led the development of guidance, tools and resources for material logistics planning and resource efficiency in the construction industry.

• Demand smoothing• Construction consolidation centres• Off-site manufacturing• Waste management and reprocessing

logistics opportunities• Delivery management systems

Chapter 09The role of the construction logistics manager

Within construction the logistics manager is a relative newcomer. The role, what it entails and its importance are gradually becoming better understood, but across the industry it is still a work-in-progress. The chapter defines the role in detail.Some of the topics covered:• The responsibilities of the logistics manager• The pros and cons of using in-house or out-sourced professional resources such

as agency staff, consultants, third-party logistics companies etc • The demands of the role, qualifications and personal characteristicsThe chapter further explains how the Construction Logistics Plan (CLP) is not only a responsibility of the logistics manager but a key tool in performing his/her duties. A detailed CLP template is included in the chapter.


Andy Brown

Operations Director, Mace Group responsible for construction logistics planning and operations.

Chapter 10Third-party logistics operators in construction: the role they play and the role they could play

While third-party logistics operators (3PL) provide many services to the construction industry they do not play the strategically central role they do in many other industries eg omni-channel retailing. The chapter analyses how the role of 3PLs will evolve and their use grow, and the potential benefits that will follow.Some of the topics covered:• Supply chain analysis: structure, complexity, presence of a dominant entity• Primary and secondary distribution networks, international supply chains etc• Final mile logistics - construction consolidation centresThe author sets out three phases in the evolution of the role of the 3PL and discusses how eg the implementation of BIM will enable their role to expand.Three case studies, including one covering the London 2012 Olympics and Paralympics, are used to exemplify and underpin the discussion.


Pete Flinders

Contract Manager for Wincanton, running its construction consolidation centres and building materials distribution.

Chapter 11Managing construction logistics for confined sites in urban areas

There is a significant global trend of urban growth which puts the construction industry under relentless pressure to manage the logistics of construction in busy congested cities. The chapter explores the material management issues of confined sites and discusses issues concerning material flows on-site and to-site.Some of the topics covered:• Material flow and material routing management on site• Material flow routing to sites in congested cities• Project programme and coordination of subcontractors• Impacts on productivity and health and safetyThe chapter draws on extensive literature research but also on real project data. In conclusion it finds that material flow needs to be controlled and ‘programme-driven’ and this can be greatly facilitated by eg the use of a construction consolidation centre.


Ruvinde Kooragamage

Works as a planner with Vinci Construction while finalizing a Doctorate of Engineering at UCL which includes developing a logistics model to control material flow to confined sites in congested cities.

Chapter 12Consolidation centres in construction logistics

The effective management of the logistics of a construction project can often benefit greatly from the use of a Construction Consolidation Centre (CCC). The chapter deals in some detail with their functions, operation and management and gives examples of different solutions from small single project CCCs to large multi project operations.Some of the topics covered:• Resources, functionality and operation of a CCC• The benefits of using a CCC: financial, programme certainty, environmental, etc• Examples of different types of CCC and where they should be located• Why CCCs are not more commonly used and what could be done to promote

their wider applicationAn endnote presents up-to-date research from a large London hospital project confirming significant savings and productivity gains attributed to the CCC.


Greger Lundesjö

Independent consultant, Lundesjo Consulting.

Chapter 13Delivery management systems

A construction project depends on bringing together materials, people and equipment - a complex process that needs to be managed. The chapter describes the function of delivery management systems, how they support the construction process and the benefits generated. Some of the topics covered:• What a delivery management system is and the features of computerized,

cloud-based, delivery management• The benefits of proper management of deliveries• Who should use a delivery management system and what can be expected in

future developments eg the connection with BIMThe discussion is supported by four case studies from the UK and Australia, demonstrating the benefits of ‘real-time’ transparency and control.


Rick Ballard and Nick Hoare

Rick is a founder member of the The Logistics Business and founding Chairman of the Construction Supply Chain Forum of the Chartered Institute of Logistics and Transport.Nick is a Senior Systems Consultant with The Logistics Business.

Thank you