Lean Thinking and E-Commerce as New Opportunities to Improve Partnership in Supply Chain of Construction Industries
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 32797
Lean Thinking and E-Commerce as New Opportunities to Improve Partnership in Supply Chain of Construction Industries

Authors: Kaustav Kundu, Alberto Portioli Staudacher

Abstract:

Construction industry plays a vital role in the economy of the world. However, due to high uncertainty and variability in the industry, its performance is not as efficient in terms of quality, lead times, productivity and costs as of other industries. Moreover, there are continuous conflicts among the different actors in the construction supply chains in terms of profit sharing. Previous studies suggested partnership as an important approach to promote cooperation among the different actors in the construction supply chains and thereby it improves the overall performance. Construction practitioners tried to focus on partnership which can enhance the performance of construction supply chains but they are not fully aware of different approaches and techniques for improving partnership. In this research, a systematic review on partnership in relation to construction supply chains is carried out to understand different elements influencing the partnership. The research development of this domain is analyzed by reviewing selected articles published from 1996 to 2015. Based on the papers, three major elements influencing partnership in construction supply chains are identified: ‘Lean approach’, ‘Relationship building’ and ‘E-commerce applications’. This study analyses the contributions in the areas within each element and provides suggestions for future developments of partnership in construction supply chains.

Keywords: Partnership, construction, lean, SCM, supply chain management.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1109365

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 2366

References:


[1] Z. Shehu, I. R. Endut, A. Akintoye, and G. D. Holt, “Cost overrun in the Malaysian construction industry projects: A deeper insight,” Int. J. Proj. Manag., vol. 32, no. 8, pp. 1471–1480, 2014.
[2] V. González, L. F. Alarcón, and K. Molenaar, “Multiobjective design of Work-In-Process buffer for scheduling repetitive building projects,” Autom. Constr., vol. 18, no. 2, pp. 95–108, 2009.
[3] A. Fearne, and N. Fowler, "Efficiency versus effectiveness in construction supply chains: the dangers of “lean” thinking in isolation", Supply Chain Manag.: An Int. J., vol. 11, no. 4, pp. 283-287, 2006.
[4] S. Maturana, L. F. Alarcón, P. Gazmuri, and M. Vrsalovic, “On-Site Subcontractor Evaluation Method Based on Lean Principles and Partnering Practices”, J. Manag. Eng., vol. 23, no. 2, pp. 67-74, 2007.
[5] R. Vrijhoef, and L. Koskela, “The four roles of supply chain management in construction,” Eur. J. Purch. Supply Manag., vol. 6, no. 3–4, pp. 169–178, 2000.
[6] X. Xue, Y. Wang, Q. Shen, and X. Yu, "Coordination mechanisms for construction supply chain management in the internet environment", Int. J. Proj. Manag., vol. 25, pp. 150-157, 2007.
[7] G. H. Briscoe, A. R. J. Dainty, S. J. Millett, and R. H. Neale, "Client led strategies for construction supply chain improvement", Constr. Manag. Econ., vol. 22, no. 2, pp. 193-201, 2004.
[8] S. O. Cheung, T. S. T. Ng, S. P. Wong, and H. C. H. Suen, “Behavioral aspects in construction partnering”, Int. J. Proj. Manag., vol. 21, pp. 333 – 343, 2003.
[9] M. S. M. Danuri, Z. M. Ishan, N. E. Mustaffa, and M. S. Jaafar, “A revisit on the current practice of dispute resolution and ADR in the Malaysian construction industry”, J. Des. Built Env., vol. 10, no. 1, pp. 1-13, 2012.
[10] M. Saad, M. Jones, and P. James, “A review of the progress towards the adoption of supply chain management (SCM) relationships in construction,” Eur. J. Purch. Supply Manag., vol. 8, no. 3, pp. 173–183, 2002.
[11] J. C. P. Cheng, K. H. Law, H. Bjornsson, A. Jones, and R. D. Sriram, “Modeling and monitoring of construction supply chains,” Adv. Eng. Informatics, vol. 24, no. 4, pp. 435–455, 2010.
[12] A. Dainty, I. Grugulis, and D. Langford, "Understanding construction employment: the need for a fresh research agenda", Persn. Rev., vol. 36, no. 4, pp. 501-508, 2007.
[13] A. Dubois, and L. E. Gadde, “Supply strategy and network effects - purchasing behavior in the construction industry”, Eur. J. Purch. Supply Manag., vol.6, pp. 207-215, 2000.
[14] M. Latham, “Constructing the team: final report by Sir Michael Latham; Joint review of procurement and contractual arrangements in the United Kingdom construction industry”, London: HMSO, 1994.
[15] K. Karim, M. Marosszeky, and S. Davis, "Managing subcontractor supply chain for quality in construction", Eng. Constr. Architec. Manag., vol. 13, no. 1, pp. 27–42, 2006.
[16] C. M. Harland, R. C. Lamming, and P. D. Cousins, "Developing the concept of supply strategy", Int. J. Oper. Prod. Manag., vol. 19, no. 7, pp. 650–674, 1999.
[17] P. J. M. Jurado, and J. M. Fuentes, "Lean Management, Supply Chain Management and Sustainability: A Literature Review", J. Cleaner Prod., vol. 85, pp. 134-150, 2014.
[18] D. Aloini, R. Dulmin, V. Mininno, and S. Ponticelli, "Supply chain management: a review of implementation risks in the construction industry", Business Proc. Manag. J., vol. 18, no. 5, pp. 735 – 761, 2012.
[19] S. E. Fawcett, and G. M. Magnan, "The rhetoric and reality of supply chain integration", Int. J. Physic. Dist. Log. Manag., vol. 32, no. 5, pp. 339-361, 2002.
[20] L. Bankvall, L.E. Bygballe, A. Dubois, and M. Jahre, “Interdependence in supply chains and projects in construction”, Supply Chain Manag.: An Int. J., vol. 15 no. 5, pp. 385-393, 2010.
[21] M. Barratt, (2004), "Understanding the Meaning of Collaboration in the Supply Chain", Supply Chain Manag.: An Int. J., vol. 9, no. 1, pp. 30-42, 2004.
[22] K. Chantarachalee, H. Carvalho, and V. A. C. Machado, “Designing Lean Supply Chains: A Case Study”, Advan. Intelligent Syst. Comp., vol. 280, pp. 797-807, 2014.
[23] R. Fulford, and C. Standing, “Construction industry productivity and the potential for collaborative practice”, Int. J. Proj. Manag., vol. 32, pp. 315–326, 2014.
[24] P. E. Eriksson, " Improving construction supply chain collaboration and performance: a lean construction pilot project", Supply Chain Manag.: An Int. J., vol. 15, no. 5, pp. 394–403, 2010.
[25] S. Naoum, and C. Egbu, “Critical review of procurement method research in construction journals”, Proc. Econ. Fin., vol. 21, pp. 6–13, 2015.
[26] P. J. Singh, and D. Power, "The nature and effectiveness of collaboration between firms, their customers and suppliers: a supply chain perspective", Supply Chain Manag.: An Int. J., vol. 14, no. 3, pp. 189- 200, 2009.
[27] P. E. Eriksson, and A. Laan, "Procurement effects on trust and control in client-contractor relationships", Eng. Constr. Architec. Manag., vol. 14, no. 4, pp. 387-399, 2007.
[28] S. Naoum, “An overview into the concept of partnering”, Int. J. Proj. Manag., vol. 21, pp. 71–76, 2003.
[29] D. M. Rousseau, S. B. Sitkin, R. S. Burt, and C. Camerer, “Not So Different After All: A Cross-Discipline View Of Trust”, Acad. Manag. Rev., vol. 23, no. 3, pp. 393-404, 1998.
[30] M. Venselaar, V. Gruis, and F. Verhoeven, "Implementing supply chain partnering in the construction industry: Work floor experiences within a Dutch housing association", J. Purch. Supply Manag., vol. 21, pp. 1-8, 2015.
[31] A. Ceric, "Communication risk and trust in construction projects: a framework for interdisciplinary research", Manag., pp. 835-844, 2014.
[32] P. Davis, and P. Love, "Alliance contracting: adding value through relationship development", Eng. Constr. Architec. Manag., Vol. 18, No. 5, pp.444 – 461, 2011.
[33] F. T. Edum-Fotwe, A. Thorpe, and R. McCaffer, “Information procurement practices of key actors in construction supply chains”, Eur. J. Purch. Supply Manag., vol.7, no.3, pp. 155 - 164, 2001.
[34] K. Y. Mok, G. Q. Shen, and J. Yang, “Stakeholder management studies in mega construction projects: A review and future directions”, Int. J. Proj. Manag., vol. 33, pp. 446-457, 2015.
[35] A. Kadefors, “Fairness in interorganizational project relations: norms and strategies”, Constr. Manag. Econ., vol. 23, no. 8, pp. 871–878, 2005.
[36] J. Rooke, D. Seymour, and R. Fellows, “Planning for claims: an ethnography of industry culture”, Constr. Manag. Econ., vol. 22, no. 6, pp. 655-662, 2004.
[37] G. Graham, and G. Hardaker, “Defence sector procurement and supply chain relationships”, Supply Chain Manag.: An Int. J., vol. 3, no. 3, pp. 142-148, 1998.
[38] J. Gosling, M. Naim, D. Towill, W. Abouarghoub, and B. Moone, “Supplier development initiatives and their impact on the consistency of project performance”, Constr. Manag. Econ., DOI: 10.1080/01446193.2015.1028956, 2015.
[39] O. Pesamaa, P. E. Eriksson, and J. F. Hair, “Validating a model of cooperative procurement in the construction industry”, Int. J. Proj. Manag., vol. 27, pp. 552–559, 2009.
[40] M. M. Azambuja, S. Ponticelli, and W. J. O’Brien, "Strategic Procurement Practices for the Industrial Supply Chain", J. Constr. Eng. Manag., vol. 140, no. 7, pp. 1-4, 2014.
[41] M. Safa, A. Shahi, C. T. Haas, and K. W. Hipel, “Supplier selection process in an integrated construction materials management model”, Auto. Constr., vol. 48, pp. 64–73, 2014.
[42] P. E. Eriksson, "Procurement Effects on Coopetition in Client- Contractor Relationships", J. Constr. Eng. Manag., vol. 134, no. 2, pp. 103-111, 2008.
[43] P. X. W. Zou, and Y. Seo, "Effective applications of e-commerce technologies in construction supply chain: current practice and future improvement", J. Infor. Constr., vol. 11, pp. 127-147, 2006.
[44] S. J. Eom, S. C. Kim, and W. S. Jang, "Paradigm Shift in Main Contractor-Subcontractor Partnerships with an e-Procurement Framework", KSCE J. Civil Eng., DOI 10.1007/s12205-015-0179-5, 2015.
[45] P. E. D. Love, J. Liu, J. Matthews, C. P. Sing, and J. Smith, “Future proofing PPPs: Life-cycle performance measurement and Building Information Modelling”, Auto. Constr., vol. 56, pp. 26–35, 2015.
[46] J. H. Rankin, Y. Chen, and A. J. Christian, "E-procurement in the Atlantic Canadian AEC industry", http://itcon.org/2006/06/, 2006.
[47] E. O. Ibem, and S. Laryea, "Survey of digital technologies in procurement of construction projects", Auto. Constr., vol. 46, pp. 11-21, 2014.
[48] E. W. L. Cheng, H. Li, P. E. D. Love, and Z. Irani, “An e-business model to support supply chain activities in construction”, Logistics Infor. Manag., vol. 14, no. 1/2, pp. 68–78, 2001.
[49] E. Tribelsky, and R. Sacks, “An Empirical Study of Information Flows in Multidisciplinary Civil Engineering Design Teams using Lean Measures”, Architec. Eng. Design Manag., vol. 7, no. 2, pp. 85-101, 2011.
[50] J. M. A. Rodriguez, J. E. L. Gayo, and P. O. Pablos, "New trends on e- Procurement applying semantic technologies: Current status and future challenges", Comp. Ind., vol. 65, pp. 800-820, 2014.