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Supply Chain in Construction Sector

Firstly, the focus may be on the impacts of the supply chain on site activities. The goal is to reduce costs and duration of site activities. In this case, the primary consideration is to ensure dependable material and labor flows to the site to avoid disruption to the work flow. This may be achieved by simply focusing on the relationship between the site and direct suppliers.


Secondly, the focus may be on the supply chain itself, with the goal of reducing costs, especially those relating to logistics, lead-time and inventory. Material and component suppliers may also adopt this focus


Thirdly, the focus may be on transferring activities from the site to earlier stages of the supply chain. This rationale may simply be to avoid the basically inferior

conditions on site, or to achieve wider concurrency between activities, which is not possible with site construction with its many technical dependencies. The goal is again to reduce the total costs and duration. Suppliers or contractors may initiate this focus.


Fourthly, the focus may be on the integrated management and improvement of the supply chain and the site production. Thus, site production is subsumed into SCM. Clients, suppliers or contractors may initiate this focus.

Supply Chain in Manufacturing Sector

First, there are development issues of SCM, including order information transparency, reduction in variability, synchronising of material flows, management of critical resources and configuration of the supply chain.


Second, there are strategies for SCM including establishment of stable partnerships, modular out- sourcing of components, design for suitability for manufacture, flexible manufacturing technologies, evolution of the supply chain with the product life cycle, and information acquisition and sharing.


Third, there are levels of SCM that can be distinguished, including initial partnership (e.g. building good relations with suppliers and distributors), logistics management (e.g. implementing and controlling the flow involving all actors in the chain).

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