The document discusses factors preventing the construction industry from addressing logistics issues and proposes solutions. It identifies that (1) there is no incentive to tackle logistics as benefits are difficult to identify, (2) the one-off nature of construction projects makes logistics management harder compared to other industries, and (3) the fragmented nature of the industry and contractual arrangements hinder logistics. It recommends developing logistics plans, improving design processes, training, and greater collaboration across the supply chain to optimize construction logistics.

1. MAIN SOURCE :IMPROVING CONSTRUCTION LOGISTICS
Report of the Strategic Forum for Construction Logistics Group
August 2005
LOGISTICS &
PRODUCTIVITY
PART 2

2. Construction Productivity-Logistics
What is preventing the industry from
addressing Logistics?
There are a number of factors such as:
 There is no real incentive to tackle this
because it is difficult to identify who
benefits.
 Those who may be required to do things
differently do not necessarily benefit it.

3. Construction Productivity-Logistics
 Every construction job is seen as a ‘one-
off’.
 with a team built up for a short period of
time;
 then disbanded afterwards;
 it is harder to manage the system to
optimise logistics in construction;
 easier for manufacturing or retail;

4. Construction Productivity-Logistics
 the fragmented nature of the construction
industry;
 contractual arrangements that get in the
way of logistics;
 lack of direct employment also hinders
logistics;
 Those variables list above makes logistic
on construction site more difficult.

5. Construction Productivity-Logistics
 Advance planning and design of
projects is generally inadequate, as are
lead times.
 There is a lack of transparency in costs
throughout the construction process.
 Decisions are often based on cash flow.

6. Construction Productivity-Logistics
 The way costs are recorded does not
help identify the potential savings
from improved logistics.
 Unlike other industries, the
information provided in construction is
generally an ‘estimate’ rather than an
exact science.

7. Construction Productivity-Logistics
 There is a general lack of understanding of the
constraints of the supply chain.
 There is also a lack of trust and confidence that
the supply and chain will actually deliver when
required.
 Can projects rely on a ‘just in time’ delivery of
products?
 Clients (and others) believe that project cost
already allows for appropriate resources to be
committed to logistics on the project.

8. Construction Productivity-Logistics
Off – site manufacture and Modern Methods
of Construction
One of the reasons why logistics is so important
in construction can be described as:
 the fragmented nature of the industry;
 wide range of products;
 unpredictable outside environment needs a
well planned logistics;

9. Construction Productivity-Logistics
Good steps toward a better logistics
 innovative methods of construction;
 advance machinery;
 robotics;
 off site components;
 advance management softwares;
 Also, less products that need to be delivered to
and assembled on site all good step towards a
better logistics.

10. Construction Productivity-Logistics
Programme for improving logistics
 No one part of the construction industry can
deliver improved logistics on its own.
 The benefits will come from the different parts of
the industry.
Inter-acting in a different way such as:
 planning together
 sharing information
 exposing the real cost of activities in a way that
is currently not typical.

11. Construction Productivity-Logistics
Clients and logistics
 Clients have every reason to expect the
supply side to deliver their projects efficiently.
 To ensure that proper attention is given to
logistics so that the benefits referred to earlier
are delivered.
 Clients can help in this by making sure that
there is a Logistics Plan at an early stage in
their projects.

12. Construction Productivity-Logistics
 Client should make sure that all the key
players in the supply chain have signed up
to this Plan.
 There should be a Logistics Plan prepared
at an early stage in every project.
 A Best Practice Guide prepared to help
clients understand what they can expect
from the supply side on logistics.

13. Construction Productivity-Logistics
Design Professionals
 Design Professionals involvement in
good logistics.
 Particularly at the scheme design stage.
Logistics will be greatly helped if:
 The design professionals should draw
up a Process Map at an early stage in
the design.

14. Construction Productivity-Logistics
 Including a Bill of Materials.
This should look at:
1. The flow of materials needed on a
project
2. Ways of minimising stockholding

15. Construction Productivity-Logistics
Which of the professional members of the
supply chain should be responsible for this?
 This needs to be discussed among
managers.
 The quantity surveyors with their
background might have the appropriate
skills for this.

16. Construction Productivity-Logistics
 Alternatively, it could require the
input of logistics specialists.
 Manufacturers, suppliers and
distributors clearly need to make
an input to this Plan.

17. Construction Productivity-Logistics
 The various professional bodies
responsible for the design professions
in the construction industry –
 RIBA
 ICE
 IStruct E
 CIBSE on design issues

18. Construction Productivity-Logistics
 RICS on measurement and costing.
 They are in the best position to
highlight the importance of logistics.
 As well as in the training of those
seeking to join the profession.

19. Construction Productivity-Logistics
In the short term:
 This can be achieved through awareness
guidance as part of continuing professional
development.
In the medium term:
 The importance of logistics needs to feature
in the initial education and training of
University students and new members.

20. Construction Productivity-Logistics
 The professional team needs to
prepare a Bill of Materials as part of the
Logistics Plan.
 The professional institutions consider
ways in which the role of their
profession in project logistics can be
incorporated in initial education and
training.

21. Construction Productivity-Logistics
Main Contractors/specialist contractors
 Many see the construction manager as the key
player in co-ordinating the logistics on a
construction project.
 This is not a function that is being carried out as
effectively as it should be across the
construction industry.
 In some major projects logistics specialists are
being employed.

22. Construction Productivity-Logistics
 The responsibility for project logistics
must rest with the main contractors.
 it is essential they drew up a Logistics
Plan in consultation with the rest of
the supply chain at the outset of a
project.

23. Construction Productivity-Logistics
 The Bill of Materials will be an important
input to this.
 The specialist contractors should each
prepare that sub-set of the Logistics Plan
relevant to their specialist input.
 They must decide on how they will be
making optimum use of the skilled labour
on site.

24. Construction Productivity-Logistics
 Those responsible for the logistics on a
project must have the right skills to perform
the function.
 CITB Construction Skills is asked to
recommend how logistics skills can be
developed in the industry.
Therefore:
 Main contractors most prepare a Logistics
Plan in consultation.
 The rest of the Supply Chain at the outset of
each project must be involved.

25. Construction Productivity-Logistics
 This Plan should include the input to the
project from the specialist contractors.
 Also, the key manufacturers and
suppliers.
 CITB Construction Skills review the
need for logistics skills in the industry.
 CITB to recommend what needs to be
done to address this.

26. Construction Productivity-Logistics
Manufacturers/Suppliers/ Distributors
Key objective:
 ensure that the products and materials
arrive on site at the time;
 In the quantities that are required;
 This does not just depend on the
efficiency of the supply network.

27. Construction Productivity-Logistics
 it also relies on the pre-planning of those on
the construction site.
Effective communication amongst:
 those planning the project;
 those supplying the products;
 those supplying materials.
 Manufacturers and suppliers can make a
significant contribution to the efficiency.

28. Construction Productivity-Logistics
Manufactures involvement:
 It will help if they are involved early enough in
the process.
 If they can make an input to the Logistics
Plan through the preparation of the Bill of
Materials.
On the transport side:
 There may be an opportunity to look at ways
of developing best practice.

29. Construction Productivity-Logistics
Learning from other industries:
 through the Department for
Transport’s Sustainable Distribution
programme;
 This has not been given any attention
yet.
 Greater transparency of cost in the
construction process.

30. Construction Productivity-Logistics
Therefore:
 The Department for Transport’s
Sustainable Distribution programme
include work on transport in the
construction industry.
 Key manufacturers
 Suppliers

31. Construction Productivity-Logistics
 Distributors input to the Bill of
Materials being prepared as part of
the Logistics Plan for each project.
 Distributors reflect the cost of
distribution in their pricing policies.

32. Construction Productivity-Logistics
 distributors work with contractors
 See how lessons from the
Consolidation Centre approach
might be transferred to other
significant construction projects
and programmes.

33. Construction Productivity-Logistics
Information Technology
 The use of electronic communications as
effectively as other industries.
 This will to help in improve logistics
throughout the supply chain.
 The industry IS not utilising bar coding for
product ordering.
 E-tagging for tracing products throughout
the process.
 To the extent that seemed appropriate.