Table Of Contenti
Supply Chain
Management
and Logistics
in Construction
ii
THIS PAGE IS INTENTIONALLY LEFT BLANK
iii
Supply Chain
Management
and Logistics
in Construction
Delivering
tomorrow’s built
environment
Edited by
Greger Lundesjö
iv
Publisher’s note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publishers and authors cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the ma-
terial in this publication can be accepted by the editor, the publisher or the authors.
First published in Great Britain and the United States in 2015 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review,
as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
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and licences issued by the CLA. Enquiries concerning reproduction outside these terms should
be sent to the publishers at the undermentioned addresses:
2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 4737/23 Ansari Road
London EC1V 3RS Philadelphia PA 19102 Daryaganj
United Kingdom USA New Delhi 110002
www.koganpage.com India
© Greger Lundesjö, 2015
The right of Greger Lundesjö to be identified as the author of this work has been asserted by him
in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 7242 9
E-ISBN 978 0 7494 7243 6
British Library Cataloguing-in-Publication Data
A CIP record for this book is available from the British Library.
Library of Congress Cataloging-in-Publication Data
Lundesjö, Greger.
Supply chain management and logistics in construction : delivering tomorrow’s built environment
/ Greger Lundesjö.
pages cm
ISBN 978-0-7494-7242-9 (paperback) – ISBN 978-0-7494-7243-6 (ebk) 1. Construction industry–
Management. 2. Construction industry–Materials management. 3. Business logistics. I. Title.
HD9715.A2L85 2015
624.068’7–dc23
2015015895
Typeset by Graphicraft Limited, Hong Kong
Print production managed by Jellyfish
Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY
Contents
Contents v
Contributor biographies x
Introduction 1
The expanding role of logistics in construction 1
Perspectives and opinions 4
Outline of the book 4
Part One 7
Strategic perspectives 7
01 9
The challenge of construction logistics 9
Introduction 9
Factors that influence logistics activities 13
The role of logistics management within construction 16
The challenges of the urban environment 21
Conclusion 22
Note 23
References 23
02 25
Aggregating global products for just-in-time delivery to construction sites 25
Introduction 25
Global sourcing 26
Investment in procurement and centralized decision making 27
Environmental legislation, quality and good waste management 28
Lean supply onto site with plot-picked delivery 29
Who is best placed to deliver an aggregation and lean delivery capability? 32
Commercial and risk issues 33
Conclusion 34
03 35
Construction logistics – supply of bulk materials 35
Introduction 35
Logistics, customers and bulk materials 35
Logistics models in construction bulk materials 43
Supply chain maturity 55
v Conclusion 61
References 61
04 62
Effective management of a construction project supply chain 62
Introduction 62
A typical construction project supply chain 63
Construction logistics 64
Defining ‘effective’ management of a construction supply chain 67
ContentS Best practice – 2020 70
Improvement strategy 71
Conclusion 74
References 75
05 77
Construction supply chain management strategy 77
Introduction 77
Supply chain risks 79
Framework agreements 84
Supply chain management of logistics in construction 84
Case study Mace Business School 85
Conclusion 87
Reference 87
Part Two 89
The impact of BIM and new data management capabilities on supply chain management in construction 89
06 91
Data management for integrated supply chains in construction 91
Contributor biographies x IInntfroordmuacttiioonn management in9 c1onstruction 92
Big data and construction 102
Data and the integrated supply chain 111
Enterprise-level integration 115
Conclusion 117
References 118
Introduction 1 PCaornt sTtrhurcetei on logistics and su1s2t1ainability 121
07 123
The role of logistics in achieving sustainable construction: a Swedish perspective 123
Greger Lundesjö ISnutsrtoadinuacbtiloen c onstruction log1is2t3ics 126
Practical considerations for efficient and sustainable construction logistics 130
Case studies 134
Case study ‘The University Hospital of the future’ – University Hospital in Linköping, Sweden 134
The expanding role of logistics in construction 1 Case study Triangeln (the Triangle) – Malmö, Sweden 135
Conclusion 137
Reference 138
Perspectives and opinions 4 08 139
Resource efficiency benefits of effective construction logistics 139
Introduction 139
Outline of the book 4 Construction sustainability impact 140
Supply chain influence on sustainable construction logistics 143
Construction logistics strategies and how they can influence resource efficiency 144
Material logistics planning 154
Conclusion 155
References 158
Part Four 159
Part One Strategic perspectives 7 L0T9oh ge irsotilces oofp tehrea tcioonnsst ruction11 l56o91gistics manager 161
Introduction 161
Logistics professional and service sourcing 163
Consulting logistics professionals 165
Construction logistics managers 169
Creating a construction logistics plan (CLP) 174
01 the challenge of construction logistics 9 C10o nclusion 118813
Third-party logistics operators in construction: the role they play and the role they could play 183
Introduction 183
Michael Browne 3CPoLm dpelificnaitteido na nd ‘unstructur1e8d4’ supply chain 185
Impact of downturn 185
Supply chains with a dominant entity 188
Case studies 189
Introduction 9 Case study Aircraft Carrier Alliance 190
Case study B&Q 192
Omni-channel 194
Factors that influence logistics activities 13 Primary and secondary distribution networks 194
International construction supply chains 195
Final mile logistics – construction consolidation centres 196
The role of logistics management within construction 16 Why doesn’t the construction industry make better use of 3PL services? 197
Case study London 2012 Olympics 199
Evolution of the 3PL role 200
The challenges of the urban environment 21 What will trigger momentum of the 3PL role in construction logistics? 202
Conclusion 203
References 203
Conclusion 22 11 205
Managing construction logistics for confined sites in urban areas 205
Introduction 205
Note 23 Identifying current challenges in managing construction logistics 206
Developing a theoretical framework 211
Conclusion 218
References 23 References 221
12 225
Consolidation centres in construction logistics 225
Introduction 225
The resources, functionality and operation of a CCC 227
The benefits of using a CCC 233
Types of CCC 237
02 Aggregating global products for just-in-time delivery to Locating a CCC 239
Conclusion 240
End note 241
construction sites 25 R13e ferences 224423
Delivery management systems 243
Introduction 243
Mark Franklin WThhea fte iast uar dese loivfe croym mpauntaegriezmede ndte sliyvsetreym m? anagement 224446
The benefits of proper management of deliveries 247
Who is it for? 250
Introduction 25 TChaese f usttuudreie s 225512
Case study Royal Adelaide Hospital 252
Global sourcing 26 CCaassee ssttuuddyy MMe1d miao Ctoitryw UayK w, Sidalefnoirndg 225534
Case study MidKent College 256
Investment in procurement and centralized decision making 27 CGolonscslaursyio n 225568
INDEX 262
Environmental legislation, quality and good waste
management 28
Lean supply onto site with plot-picked delivery 29
Who is best placed to deliver an aggregation and lean delivery
capability? 32
Commercial and risk issues 33
Conclusion 34
vi Contents
03 Construction logistics – supply of bulk materials 35
Matthew Woodcock
Introduction 35
Logistics, customers and bulk materials 35
Logistics models in construction bulk materials 43
Supply chain maturity 55
Conclusion 61
References 61
04 effective management of a construction project supply
chain 62
Stephen Robbins
Introduction 62
A typical construction project supply chain 63
Construction logistics 64
Defining ‘effective’ management of a construction supply chain 67
Best practice – 2020 70
Improvement strategy 71
Conclusion 74
References 75
05 Construction supply chain management strategy 77
Brian Moone
Introduction 77
Supply chain risks 79
Framework agreements 84
Supply chain management of logistics in construction 84
Case study: Mace Business School 85
Conclusion 87
Reference 87
Part twO T he impact of BIM and new data
management capabilities on supply
chain management in construction
89
06 Data management for integrated supply chains in
construction 91
Wes Beaumont and Jason Underwood
Introduction 91
Information management in construction 92
Big data and construction 102
Contents vii
Data and the integrated supply chain 111
Enterprise-level integration 115
Conclusion 117
References 118
Part three C onstruction logistics and
sustainability
121
07 the role of logistics in achieving sustainable
construction: a Swedish perspective 123
Monika Bubholz, Camilla Einarsson and Lars-Göran Sporre
Introduction 123
Sustainable construction logistics 126
Practical considerations for efficient and sustainable construction
logistics 130
Case studies: 134
‘The University Hospital of the future’ – University Hospital in
Linköping, Sweden 134
Triangeln (the Triangle) – Malmö, Sweden 135
Conclusion 137
Reference 138
08 Resource efficiency benefits of effective construction
logistics 139
Malcolm Waddell
Introduction 139
Construction sustainability impact 140
Supply chain influence on sustainable construction logistics 143
Construction logistics strategies and how they can influence
resource efficiency 144
Material logistics planning 154
Conclusion 155
References 158
Part fOur Logistics operations 159
09 the role of the construction logistics manager 161
Andy Brown
Introduction 161
Logistics professional and service sourcing 163
Consulting logistics professionals 165
Construction logistics managers 169
viii Contents
Creating a construction logistics plan (CLP) 174
Conclusion 181
10 third-party logistics operators in construction:
the role they play and the role they could play 183
Pete Flinders
Introduction 183
3PL definition 184
Complicated and ‘unstructured’ supply chain 185
Impact of downturn 185
Supply chains with a dominant entity 188
Case studies: 189
Aircraft Carrier Alliance 190
B&Q 192
Omni-channel 194
Primary and secondary distribution networks 194
International construction supply chains 195
Final mile logistics – construction consolidation centres 196
Why doesn’t the construction industry make better use of
3PL services? 197
Case study: London 2012 Olympics 199
Evolution of the 3PL role 200
What will trigger momentum of the 3PL role in construction
logistics? 202
Conclusion 203
References 203
11 Managing construction logistics for confined sites in
urban areas 205
Ruvinde Kooragamage
Introduction 205
Identifying current challenges in managing construction
logistics 206
Developing a theoretical framework 211
Conclusion 218
References 221
12 Consolidation centres in construction logistics 225
Greger Lundesjö
Introduction 225
The resources, functionality and operation of a CCC 227
The benefits of using a CCC 233
Types of CCC 237
Contents ix
Locating a CCC 239
Conclusion 240
End note 241
References 242
13 Delivery management systems 243
Rick Ballard and Nick Hoare
Introduction 243
What is a delivery management system? 244
The features of computerized delivery management 246
The benefits of proper management of deliveries 247
Who is it for? 250
The future 251
Case studies: 252
Royal Adelaide Hospital 252
Media City UK, Salford 253
M1 motorway widening 254
MidKent College 256
Conclusion 256
Glossary 258
Index 262
