Implementing supply chain "best practices" in the construction value system

Abstract

The construction industry, with a $4.2 trillion worldwide market, is highly fragmented with innumerous players in its value system. Supply Chain Management involves management of inter and intra company resources (personnel, inventory, transportation, facilities) in order to efficiently deliver products and services to the market place and boost profitability. Different industries have utilized supply chain management practices in their own ways to achieve this objective. From a preliminary study, it seems that the Construction industry has only utilized Supply Chain Management practices in a limited way and there still remains a huge opportunity in improving efficiencies in the Construction Value System. This thesis examines some of the supply chain best practices that have been successfully implemented in other industries (Ex: Aviation/Defense, High Tech, Process, Consumer Goods, etc) and discusses how some of those can be applied to the construction industry. This study, oriented towards improving the Construction Value Chain may be used by academia and industry as a reference when implementing supply chain practices, processes and systems. Researchers may also use this study and develop detailed implementation strategies on how some of these best practices could be implemented in the Construction industry.