How will Supply Chain Management Evolves in Construction Projects

Introduction:
The term Supply Chain Management (SCM) describes in construction projects, interconnecting different supply contractors for procurement hierarchy to manage multiple buildings or infrastructure. That means being control and traceability on products, services, organisations, people, logistics, activities, information and resources in order to transfer raw materials for a final or finished product. Unlike the different sectors even in the construction sector every building or infrastructure is built unique or different way, developed by projects teams and consultants, contractors and suppliers that who have never worked together before or again. In that process to ease various stages of project complexity and to mix different procurement systems together for working, organisations form an effective SCM in construction projects (Designing Buildings, 2016).
Implementing SCM Lecture learning outcomes in Construction Projects for Future career:
Although, since many years’ construction organisations are working very hard to meet growing expectations in business, still facing some declined results. Thus, organisations must adopt some effective techniques into construction projects to mitigate or stop negative results. According to Harland (1996), SCM has bind to prominently four factors. Those are “the internal SCM”, “dyadic SCM”, “the external SCM” and “network SCM”.
Applying those factors into construction projects:
Usually, in construction projects design consultants (first tier suppliers) work for client, and contractor maintains a supply chain(SC) with subcontractors and specialist suppliers. And sometimes, especially working on Private Finance Initiate(PFI) and design and build projects, only contractor or design consultants work as a single integrated supply team. In that process, traditional procurement methods cannot be accepted until those demonstrated better value for money. Thus, while dealing with large or complex projects it is difficult to find out (due to different plethora of suppliers) which management involvement exists at top of the chain (Designing Buildings, 2016). Therefore, by adapting the “internal SCM” approach, it is very easy to manage the process of materials, information and finances flow from initiating to finishing in construction projects (Harland, 1996).
In addition, in construction projects first tier and second tier suppliers would maintain positive relationships only when sign up to fairly onerous agreements and when the chain develops, but when it comes to the end of the chain process the relationship would not be so good due to contractual liabilities or lack of suppliers (Designing Buildings, 2016). Thus, by implementing “dyadic” or two party relationships with immediate suppliers it is possible to maintain mutual relationship between first tier and second tier suppliers (Harland, 1996).
Furthermore, “the external SCM” and “network SCM” approach could bring an effective network relationship in construction projects between contractors and special suppliers, and provide enormous cost benefits and value to the client. In addition, these approaches provide a strategy to the project programme. As a result, feedbacks can get at the design stage onwards for project evaluation. This is the great advantage to the construction projects. However, the whole working process in projects controlled by supply and demand (Designing Buildings, 2016).
Implementing modern procurement or integrated supply chains rather than Traditional procurement in Construction Projects
In traditional procurement method organisations may only be linked with contracts, and suppliers are urged to hand over specified products or services at economical prices. As a result, contracts procurement would implement on lowest prices than actual price. Because of that reason, the work would not motivate the client’s interest. But, in modern procurement the supply chains not linked with contractors only, those are connected with designers and contractors directly to the client, with separate contracts. Besides, this method has a long-term goal and maintains long-term relationships in a collaborative way in projects in order to deliver added value to the client by integrated supply chains (Constructing Excellence, 2015). Those sharing problem relationships and collaborative work not only benefit to the client final target, but also useful to maintain improved margins for themselves, low pressure and low aggression, desegregation, reciprocal understanding and enhanced reputations (Hall, 2001). Finally, modern procurement technique creates higher client satisfaction and delivers benefits for end-users within time, cost and with minimum defects (Constructing Excellence, 2015).
Applying lean principles in construction SCM
In construction projects lean construction not only provides the continuous improvement but also eliminates the waste with providing minimum cost and maximum value by considering customer requirements (Koskela et al., 2002). However, through Integrated Project Delivery (IPD), technique can easily overcome the organizational and contractual problems in chains. Usually, IPD team built with architectures, technical consultants, contractor and sub-contractors. Then, IPD approach shares all project objectives with the interests of key participants. In that chain process IDP relays only on continuous communication, transparency and participant selection until to get final object (Matthews and Howell, 2005). Also, Integrated Lean Project Delivery(ILDP) is a process not only eliminates the waste throughout the whole construction value chain, but also brings evolution of initial planning, design and examines whole construction process and finds out where and when still waste producing and uses lean tools in the IDP process to eliminate that waste (The Boldt Company, 2013). Furthermore, Last Planner System (LPS), helps to improve the overall production process in supply chains, delivers objectives more quickly(just-in-time), safely, at reduced cost. In addition, during the whole supply chain process LPS creates smooth work flow and great collaboration work with sub-contractors (Ballard, 2011, cited in Mossman, 2013). Finally, these lean principal methods strive to not only for business development or client satisfaction, but also drive to appreciable innovation work every time in construction projects.
Conclusion:
Therefore, it can be concluded that, since many years SCM has been developing gradually by many organisations in a relative way, although very much labour intense process in a way of engineering and managing global networks. However, when it comes to the construction projects, SCM turned as a biggest challenging issue. Because, most of the organisations failed to implement SCM in the effective way in projects. Therefore, the purpose of the present study was stated clearly, how can SCM be achieved effectively by implementing Harland (1996), SCM principles, executing integrated supply chains rather than traditional methods and adapting some lean techniques in construction projects.
However, further research is needed for modern procurement method to get clear objectives, and for instance, SCM in construction could eliminate waste and gives continuous improvement by implementing lean principles, but sometimes especially in partnering and networking scenarios with construction suppliers it is not possible, because project managers hold more focus on project efficiency and competitive procurement methods (Dubois and Gadde, 2000). And in sometimes SCM in construction only limited to the clients, consultants and contractors. Therefore, further research recommended to this study.

References:
The Boldt Company (2013) Integrated Lean Project Delivery.
Constructing Excellence, (2015).
Available at: http://constructingexcellence.org.uk/wp-content/uploads/2015/03/supplychain.pdf (Accessed: 07/12/16).
Designing Buildings, (2016).
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Harland, C.M. (1996) Supply chain management: relations, chains and networks. British Journal of management, 7(s1), pp. S63-S80.
Koskela, L., Howell, G., Ballard, G., and Tommelein, I. (2002) Foundations of Lean Construction: Design and Construction: Building in Value. Oxford, UK: Butterworth-Heinemann, Elsevier. ISBN: 0750651490.
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Available at: http://www.leanconstruction.org/media/docs/Mossman-Last-Planner
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