Analysis of Supply Chain Management on Construction Projects in UK

This project proposal delves into the application of Supply Chain Management (SCM) within the UK construction industry. It aims to understand the role of SCM in building and construction, exploring its integration, benefits, and the underlying reasons for its adoption. The project will include a literature review, examination of common SCM models, and identification of challenges within the UK construction supply chain. The research will also propose a methodology based on the Deming cycle (PDCA) to implement SCM effectively, incorporating coordination, strategic planning, collaboration, and information integration. The project outlines the required resources, prerequisite skills, and a Gantt chart for project management, concluding with the growing importance of SCM in construction and its potential for improving competitiveness and profit margins. The research will also provide possible recommendations to address the problems identified.

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CIVIL ENGINEERING
Name of Student
Institution Affiliation

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UNDERSTANDING SUPPLY CHAIN MANAGEMENT ON CONSTRUCTION
PROJECT IN UK
Project Summary
SCM is a concept that is predominantly intended to improve performance and reduce wastes
both of which are very significant factors for any organization to successfully compete and
survive in the current global economic environment. This research will be carried out with the
main aim of understanding SCM on building and construction developments in United Kingdom
(UK).
The concept of SCM plays a very crucial role in the construction industry. SCM has assisted
construction companies by improving competitiveness, have more control and regulation over
various variables and factors within the project, which has directly contributed to the increase in
profit margins.
The findings of this research will be able to highlight the restrictions and problems which exists
in the construction industry of United Kingdom’s supply chain as well as causes of the problems.
The research will give possible recommendations to address the problems identified.
Introduction
Information flows and proper management of materials are the main strategic priorities for
majority of construction companies (Pryke, 2016).Therefore, SCM can be a very significant
technique for the building corporations. This proposal tries to ascertain the application of SCM
in building industry.

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Aims and objectives
The main aims and objectives of this research is to enable one to understand the role of SCM on
building and construction works in the UK. The objectives have been formulated as follows;
1. Carrying out literature review on SCM in building and construction
2. To understand the Common model of the supply chain in the works of building and
construction
3. To find out the reasons of integrating the core principles of SCM in building.
4. To demonstrate the building supply chain in construction industry its benefits.
Research questions
This research will be guided by the following questions;
What is SCM?
How is SCM integrated in construction industry?
What are the paybacks of applying SCM in building industry?
What are the core reasons of integrating the of SCM in building industry?
Literature review
SCM in building works and construction
SCM involves vigorous regulation of supply chain events in order to ensure maximum value on
the side of the client and also realize a viable and manageable competitive advantage (O'Brien,
Formoso, Ruben, & London, 2017). The chain shield everything, beginning from development of
the product, sourcing, and producing products, carrying out logistics and also putting information

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system in place to ensure the organization’s activities are still running no matter what. The
supply chain management theory can be established based on two notions. They include;
Basically, any artefact which the end user receives at the final stage represents the collective
effort and strength of numerous organizations. All those organizations are referred to as supply
chain.
The second theory is even though supply chain has been there all along, most individuals and
organizations prefer buying directly from the seller once they have run out of stock. Efficient
administration and supervision in supply chain should be given priorities in order to compete
globally (Walker, 2017).
Proposed factors that are required in SCM
The following are some of the key issues that should be distinguished when applying a SCM in
building and construction;
 Mostly the building to be constructed belongs to a single individual (Townsend, 2014)
 The location, equipment and construction techniques changes in different projects
 Some construction materials may not be stored in the site of the project
Supply Chain Management is meaningful and resourceful while building. In addition, building is
a development, demonstrated by absence of combination of its supply chain activities, one thing
which makes SCM an assuring tactic in achieving incorporation between the external and the
internal traders and suppliers, contractors, designers and subcontractors (Lundesjo, 2011).
Demonstration of the building supply chain and how all its partakers intermingle.

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Common model of SCM in building works and construction
Each building task to be constructed is likely to have many supply chains. This is because each
new project the customers may need and the building project features may not be the same. The
supply chain therefore, in any building and construction areas symbolizes a structure of
numerous suppliers (Benton & McHenry, 2017). This is the customer relationship which is
required in order to finish the projects. In addition, whatever that is supplied ends at the
construction site. One other area that can’t be ignored also is the total number of customers
linked to the manufacturing supply chain and also the total number of customers in the building
site that is restricted.
Supply chain in construction is largely affected by a high number of problems which have been
outlined by several authors. A good number of them are not created in the renovation process but
in various stages which are within the supply chain cycle. Here are a few of those challenges;
 Low quality of materials and equipment
 Design issues i.e. numerous changes and unreliable information,
 Lack of enough management (Mead & Gruneberg, 2014)
 Poor quality training of the builder’s suppliers, workers and subcontractors
 Incomplete form of communication and transfer of information
 Poor methods in measuring and appraising various parties in the process of supply chain
(Khairuddin, 2016).
Reasons of integrating the main values of SCM
The following are some of the reasons why the principles of SCM should be integrated;
o Gaining competitive and comparative advantage

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o Generating value for money
o Reducing costs
o Satisfactory of both the internal and external customers
Information flows and proper management of materials are the main strategic priorities for
majority of construction companies (Pryke, 2016) SCM process can be a very significant
technique for the building and construction companies. This is particularly attractive considering
the fact that it is where the actual integration, management and coordination of supply chain
activities takes place.
Expected Practical Element Output
To understanding the situation of SCM in the UK’s construction Industry, a generic
Methodology will be required to implement Supply Chain Management. This methodology will
be mainly addressed to the construction firms. Nevertheless it can as well applied by additional
parties in the supply chain. This methodology will be founded on the Deming cycle, which is
also known as PDCA cycle (plan – do – check – act) (Thunberg, 2017).The foundation of this
cycle and its presentation to all procedures or activities of the industry are fundamental to realize
constant enhancement of its supply chain. The core procedures of enactment are presented in the
following figure;

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Fig: Key procedures of the SCM implementation
This research approach is aimed at strengthening four aspects: coordination, strategic planning,
effective collaboration and Information integration and focus on the client as illustrated in the
figure below. For the project methodology to be implemented effectively, many methods and
tools will be used as presented in the figure below

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Fig: methods and tools for the planned methodology (Sullivan, Barthorpe, & Robbins, 2016)
Required Resources
Some of the resources that will be required will include print media such as journals, books,
magazines and brochures. Also electronic sources will be required such as a laptop for recording
data, printer for printing questionnaires and interment among others (Ekeskär, 2019). Financial
resources to cater for different expenses which will be incurred during the study period such as;
transport expenses, finances to purchase all the required tools and equipment. To gather
sufficient data there will be need to be supplied with, supplier’s evaluations, flow diagrams and
access to the database of different construction company. This will be aimed at access the
firsthand information and have an opportunity to analyses how different construction companies
have been making application of SCM in their operations.

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All the resources that will be required must be met to ensure that the research is carried out as
expected and all the research questions have been addressed.
Prerequisite Knowledge/skills required
Before the actual research there will be need to have the following skills rather than traits, in
order to complete the research successfully;
i) Oral and written communication
This will be of great importance during data collection, since it will be a great tool to
communicate questions and concerns to enable gather the required data.
ii) Coordination
There will be need to have ability to coordinate equipment, the research crew and resources.
iii) Mechanical and building knowledge
Mechanical and construction knowledge will be of great help in guiding the questions to be
asked during the interviews. This knowledge will be required when visiting different
construction sites.
iv) Other skills include;
v) Critical reasoning skills
vi) Willingness to learn
vii) Organization
viii) Working well with others
ix) Comfortable and adept with technology
Project Plan – Gantt chart

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The research will be carried out in 5 months as shown in the Gantt chart below.
Fig: Gantt chart
Conclusion
In conclusion, application of SCM in building projects is growing swiftly. SCM involves vigorous
regulation of supply chain events in order to ensure maximum value on the side of the client and also
realize a viable and manageable competitive advantage (Winch, 2017). This research will be carried out
with the main aim of understanding how SCM works on construction projects and works in United
Kingdom (UK). SCM has a very vital part in the construction industry. SCM has assisted construction

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companies by improving competitiveness, have more control and regulation over various variables and
factors within the project, which has directly contributed to the increase in profit margins.

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References
Benton, C., & McHenry, L. (2017). CONSTRUCTION PURCHASING & SUPPLY CHAIN
MANAGEMEN. Sydney: McGraw Hill Professional.
Ekeskär, A. (2019). Exploring Third-Party Logistics and Partnering in Construction: A Supply
Chain Management Perspective. Chicago: Linköping University Electronic Press.
Khairuddin, N. B. (2016). Practices and Challenges of Supply Chain Management Among
Construction Project in Malaysian Construction Industry. Chicago: Universiti Teknologi
Malaysia,.
Lundesjo, G. (2011). Supply Chain Management and Logistics in Construction. London: Kogan
Page.
Mead, J., & Gruneberg, S. (2014). Programme Procurement in Construction. London: John
Wiley & Sons,.
O'Brien, W., Formoso, C., Ruben, V., & London, K. (2017). Construction Supply Chain
Management Handbook. Chicago: CRC Press.
Pryke, S. (2016). Construction Supply Chain Management: Concepts and Case Studies. London:
John Wiley & Sons,.
Sullivan, G., Barthorpe, S., & Robbins, S. (2016). Managing Construction Logistics. London:
John Wiley & Sons.
Thunberg, M. (2017). Developing a Framework for Supply Chain Planning in Construction.
Chicago: Linköping University Electronic Press.

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Townsend, M. (2014). Managing in Construction Supply Chains and Markets: Reactive and
Proactive Options for Improving Performance and Relationship Menagement. Texas:
Thomas Telford.
Walker, A. (2017). Project Management in Construction. London: John Wiley & Sons.
Winch, G. (2017). Managing Construction Projects. Paris: John Wiley & Sons,.