Reverse Logistics in Australian Construction Industry for Material Management

Use of reverse logistics in Australian
construction industry: An attempt to
overcome material management
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Abstract- Reverse logistics in the field of
construction industry is referred as
movement of products as well as
materials from the retrieved building to a
specific new construction site. Hence, the
purpose of the research is integrating
fragmented knowledge on reverse
logistics in the field of construction
industry to be used properly in material
management. It aims to promoting the
idea among industry stakeholder as well
as wide construction community. In the
present study, the overview of reverse
logistics and its impact of material
management has been discussed.
Discussion of research methodology
chapter helps to conduct the research in
right way. On the other hand, qualitative
study has been prepared that helps to
understand the issues and challenges and
recommend suggestions to overcome
those.
Keywords: Reverse logistics, material
management, stakeholder management,
closed loop supply chain, construction
industry
Chapter 1: Introduction
1.1 Background of the study
Reverse logistics in the construction
industry is referred to the process of
movement of materials as well as products
from salvaged constructed buildings to new
building in construction site [6]. Hence, the
aim of promoting the particular concept
among the industry stakeholders as well as
wider community of construction is
important in this aspect. The qualitative
meta-analysis is helpful to synthesis the
outcomes of the previous researches as well
as presents the actions required with the help
of key stakeholders in order to promote the
concept within real-life context.
The earliest references to specific
case study are considered as reverse logistics
that is described as wrong method. The
processes of movement about the products
from customers are back to the specific
suppliers or producers within the channel of
distribution. The council of logistics
management has conceptualized reverse
logistics as the role of logistics in returning
the products as well as reusing the materials
[11]. In addition, it is important to manage
the process that can be helpful to manage the

process that can be effective for integrating
the process. It is important to improve
supply chain, where reverse logistics is
important for effective usage of the
resources that are not considered and used
previously.
1.2 Research Aims and Objectives
1.2.1 Aims of the study
The objective of the research is
making am integration of the framed body of
knowledge on the reverse logistics in
construction industry that can be helpful to
overcome material management process.
1.2.2 Objectives of the study
The objectives of the study are as
followed.
 To identify the issues
involved with material
management in construction
industry of Australia
 To critically evaluate the role
of reverse logistics in
overcoming the issues
involved with material
management in construction
industry of Australia
 To find out the issues
involved with the use of
reverse logistics in material
management in construction
industry of Australia
 To recommended solutions
for overcoming the issues
1.3 Research Questions ‘
The research questions are as
followed.
 What are the issues involved
with material management in
construction industry of
Australia?
 What is the role of reverse
logistics in overcoming the
issues involved with material
management in construction
industry of Australia?
 What are the issues involved
with the use of reverse
logistics in material
management in construction
industry of Australia?
 How the issues involved with
the use of reverse logistics in
material management in
construction industry of
Australia can be overcome?
1.4 Rationale of the research
Reversed logistics has emerged with
the process of manufacturing organization
considered as an effective measure in order
to achieve sustainable development along
with improving. However, the construction
industry has not kept pace in the procedure
of reaping the advantages of reverse
logistics compared to manufacturing
industry [5]. On the other hand, it might be
caused for industrial reverse logistics in the
field of construction as opposed to the
context of manufacturing. On the other
hand, reverse logistics as well as its
applications in the field of construction
regarding the addressed central aspects of
reverse logistics.
In the manufacturing industry,
reverse logistics is deemed as the process of
an integrated law logistics chain to the
particular structure that can be redesigned
process of improving performance. In
addition, reverse logistics facilitates
fulfilment of the objectives of conventional
procedure through complementing forward
as well as reverse logistics that becomes
important for the organization [6]. In
addition, it is important to focus on the point
of origin of the products in order to explain
several activities along with analogues
phenomena like waste management or
forwarding the logistics. In order to identify

the sections, it is required to focus on
reverse logistics process. Hence, it is
important to research on the use of reverse
logistics in the Australian construction
industry where it is attempted overcoming
material management.
1.5 Research Hypothesis
H0: There is an important role on the
use of reverse logistics to overcome material
management issues in Australian
construction industry
H1: Reverse logistics has no role in
overcoming the material management issues
in Australian construction industry
1.6 Structure of the study
The trend of study as well as
terminology is associated with the reverse
logistics has been introduced. On the other
hand, it unearths the major benefits as well
as barriers of reverse logistics in the
construction industry while providing a few
effective suggestions fort harnessing the
benefits as well as mitigates the barriers.
Finally, the research provides a future
research direction based on the review. The
research has five chapters such as
introduction, literature review, research
methodology, findings and analysis as well
as conclusion and recommendations.
Chapter 2: Literature review
2.1 Introduction
The rapid and unprecedented rise in
the construction sector in Australia has
already lead to a boom of this sector
economy. The rise in construction business
has also led to certain issues that have to be
solved. Most of the issues surround the
unavailability of materials in the
construction site and the environmental
damages it is causing. It can be said that the
issue of material management in the
construction industry has plagued this
business in the last two decades or so in
Australia.
2.2 Overview of Material Management:
The construction industry is a very
big sector and to increase the productivity of
the sector, it has been bifurcated into many
small areas such as, highways, rails,
building, dams and tunnel. Therefore, it can
be said that every project in a construction
business is unique and with that their cost as
well as equipment also changes. It is a
proven fact that the cost of material of any
project is more than 50% of the total
expense [1]. This is the main reason why so
much stress as been laid in the material
management of the construction business.
The main important concern of any
construction business is its improper
handling of the material during the working
hour. The main area of the material
management that is there in any construction
company is the material shortage, lack of a
proper storage facilities, wastage and
damage and price fluctuation of the material
[10]. The usage of paper based system that is
still mostly use in Australia recording as
well as exchanging information associated
with material management within a
particular supply chain in problematic
situation in itself. These ways of handling
essential data and figures are prone to errors
and overestimation or underestimation
issues.
Productivity:
The decrease in the productivity in
the construction business is also an
important concern that needs to be discussed
here. Around the year in Australia, many
project gets a short as well as a long
extension from its original due date of
completion. Sometime it is related to the

demand and supply issue of the material that
are to be used in the site, but most of the
time the reason for such extension is the
decrease in overall productivity of the
project that leads to delay in daily target that
needs to be completed [3]. This can be a
result of many factors such as motivational
factor of the staff member and the
employees, a constraint in the regular
demand and supply in the site, non-
availability of the resources that is to be use
at a particular time, along with many other
reason.
The effect of low productivity also
has serious implication for any given project
as has been seen in many project in
Australia. The cancellation of such project is
also one such issue that have bankrupted few
construction companies in Australia. But the
most serious implication of the low
productivity is that due to this many project
just gets stuck and is not able to move
further which will not only is seen to have
make the management suffer but the
labourers along with the staff also suffers
from this [5]. This has serious implication in
the finances of any industry and can also
damage the company beyond the point of
recovery. The main reason of this stalling of
project is due to the effect of insufficient
supply of material or due to the storage
facility not being equipped to handle the
whole logistics of a project at one.
Capital Supply
One of the very concerning aspect of
this construction industry is the supply of
capital that is caused by the action of the
management official of the company. There
could be numerous reason as to why the
supply of capital is being hindered by the
investors of the project. The management or
the investor may feel along the building of
the project that the project might not be that
much beneficial and could bear a loss. Such
kind of theory has an implication on the
capital supply of the project which is already
estimated to be around 50% of the total
budget of the project. The constraint in
capital supply can lead to the insufficient
allocation of fund in sector of the
construction company which will lead to
improper utilisation of the resources and will
eventually lead to decrease in overall
productivity [6]. The capital supply of any
construction is the core of the business and it
would be impossible for any construction
company to work with a sufficient amount
of capital. It's also a known fact that the
more capital is there in a construction
company the more prospect it is for that
company to excel in the market through the
different projects.
Safety:
The safety of the staff and the
engineer on any site is also an important
concern for any construction company in
Australia. There has been numerous
reporting of some minor as well as some
major accident in a construction site s in
Australia. Sometime these are due to
negligence of the staff as well as the other
employees and many time it is because of
some machine failure that is installed in the
site. This can be avoided by following a very
basis security protocol whenever a new site
in being selected for running the operation
[2]. There should be proper safety gears that
should be provided to the labourers and
construction workers on site. The labour
force should be made aware of all the
dangers that they could be facing, because
most of the times as it is seen, the ordinary
labour does not have any clue of the safety
concern of a site as they are not that much
taught in that subject [7]. Proper mask
should be given while handling of concrete
and cement, protective gears should be given
to the labourers that are working in the
heavy machinery department. Proper