How to Increase Coordination and Integrate Supply Chain Management in Construction

Abstract: The construction industry is known for its inefficiency, with projects exceeding budgets and not completing on time. It is claimed that these problems stem from the industry’s characteristics and affect the project’s success. Research has increased within the field of construction supply chains and construction supply chain management as a way to increase coordination and improve project performances. However, the industry and the companies within have a long way to go before construction supply chain management is integrated. This study presents problems that are manageable for a general contractor and what enabler can be implemented to facilitate the integration of construction supply chain management and coordination. The study investigates a Swedish project and its current situation, where the collected data from interviews belong to either people, processes, or contexts. The study identifies 22 problems and 21 enablers from interviews, literature, and frameworks. Early on in the study, it is noted that problems are linked and affect various disciplines. Consequently, if one problem arises it affects other disciplines. Therefore to understand the problems origin and connections will the opted analysis provide their association to each other and their belonging to either the construction or supply process. Based on the belonging, the problems are sorted if they are considered manageable for a general contractor and relate to either organizational efforts, management of the information flow, or relationships. The study also provides proposed applications for information and communication technology. Furthermore, initial steps towards integrating construction supply chain management for a general contractor this is done by initiating ’supply chain integration’ and develop integrating processes, products, and services. It is recommended that this should be done by mapping the current state of the supply and construction process, identifying individuals who are familiar with supply chain methods, and involve them in works for improvement. The second step is to develop an organizational and team culture that is open for change and supports integration. Once the culture has been established, more effort and resources can be added towards building relationships and develop construction supply chain collaborations. Proposed enablers are among several to develop selection criteria to determine suppliers and subcontractors and adapt resources such as time and money accordingly. Since subcontractors are responsible for the supply process, it is recommended that goals and evaluation criteria for these actors should be developed based on supply chain performances and form the basis for evaluating subcontractors. This study confirms previous studies where the general contractors’ ability to cooperate and their practices are affected by the owners’ demand and preferred methods. Therefore it is required that the general contractor’s ability to adapt accordingly is increased. Consequently, the need for new management principles that are highly adaptive and easy to use is demonstrated. The compiled results indicate an imbalance of responsibilities and a lack of ownership for changing the industry and showing the need for new management principles. Which leaves the question, who is responsible for changing the industry? Even though this is a complex question, as indicated in the study, there are actions that a general contractor can take to integrate construction supply chain management and increase coordination.