New Trends in Supply Chain of Construction Industry
Supply Chain management is an important component of the construction industry, from the delivery of projects to making cost-effective decisions, the supply chain in the industry is reaching more advanced levels. To remain an integral part of the construction industry, it is pertinent for the companies to organize themselves around the emerging trends in the supply chain. Since there are various players or organizational units involved in the supply chain management of the construction industry, often the operations are disturbed owing to the lack of communication. Therefore, the concept of extended enterprise has started to resonate within the supply chain management of the construction industry.
Against this backdrop, Graana.com sheds light on the new trends in the supply chain of the construction industry that have a marked impact on the operations and communication between the involved parties. As Covid-19 had disrupted the supply chain of the construction industry which eventually led to the increase in the price of housing across the globe, therefore, looking at the new trends in supply chain management is pertinent for rebounding the construction industry.
Significance of Supply Chain in Construction Industry
The significance of the supply chain in the construction industry can be gauged from the fact that one of the prominent reasons for the rise in housing prices across the globe was owing to the supply chain disruptions. Similarly, the concept of extended enterprise compels us to ponder upon achieving efficiency in the procurement, reporting, and managing of the construction warehouses. Moreover, to improve the service delivery and to forge a perpetual relationship between the various units supply chain requires daily monitoring and the incorporation of new management techniques.
The new trends in the supply chain of the construction industry are as follows:
Lean Supply Chain
The phenomenon of the lean supply chain is gaining significance in the construction industry. Lean supply chain pertains to the efficient management of resources and delivering inputs or construction material to the contractor or a builder in a manner that there is minimal waste and the supplies do not exceed the demand. The major aim of this new concept is to ensure sustainability in the supply chain management and to ensure those practices which do not promote unnecessary delays. For example delays in the production of cement and then issues in its transportation. Similarly, on the suppliers’ side, the lean supply chain is about reducing the non-value-added time at every step from beginning to end.
Supply Chain Analytics
Supply Chain Analytics is another trend in the contemporary supply chain management of the construction industry that is proving useful in better assessment of the demands by performing predictive analysis. Supply Chain Analytics is helping in making data-driven decisions which also correlates to the concept of the lean supply chain. The role of disruptive technologies is also penetrating in the construction industry which is helping in better project management and in meeting the project deadlines. Furthermore, the role of data analytics is also helping in increasing the profits of the organizations and improving the market footprint.
Big Data in Supply Chain
Big Data is about analysing the high volumes of data and processing it using the advanced softwares for transmitting it to other places where required. Therefore, in the construction industry the Big Data technology can help to improve the decision making by turning data into useful insights. Various quantitative methods are used to collect the data which is later processed to evolve a supply chain design. For example, data related to the sales, warehousing, transportation and consumers is processed which can later be processed for projections, forecasting and evaluation in the construction industry.
Value Mapping is also an efficient tool for managing the whole flow between the various departments or the organisational units. The value mapping helps to understand the functions of the departments and is also useful for specifying the duties and responsibilities. Similarly, it also helps to formulate a communication network between the contractors, site incharge and procurement department in the supply chain of the construction industry. Value mapping is also a good tool for lean supply chain management as it helps to point out the wasted and time taking processes in the whole supply chain management.