Supply Chain Management Analysis: Construction Industry Report

This report provides a comprehensive analysis of supply chain management (SCM) within the construction industry, focusing on the strategies employed by Interserve and Morgan Sindall. It begins with an executive summary and introduction, followed by overviews of both companies. The core of the report examines the design and implementation of SCM in the construction sector, including discussions on SCM processes and the benefits of implementation. The report then delves into the specific SCM strategies used by Interserve, such as agile supply chain management, and Morgan Sindall, highlighting their respective advantages and disadvantages. The configuration of SCM through collaboration, lean principles, and agility is explored, along with the integration of advanced technologies like cloud computing and big data analytics. The report concludes by summarizing key findings and offering insights into the future of SCM in construction.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author note

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SUPPLY CHAIN MANAGEMENT
Executive Summary
The report has helped in analysing the supply chain management of the construction industry
wherein Interserve and Morgan Sindall are the two companies which are taken in order to
compare the different strategies adopted by them. Furthermore, the different kinds of analysis
have been done in order to understand the usage of the advanced technology in the
organization which helped in managing the different kinds of activities efficiently. It was
noticed that there are different issues when there are no such supply chain management
strategies adopted by the companies and this caused huge issues in maintaining their
reputation in the competitive industry. Lastly, proper configuration of the supply chain
management strategies such as collaboration, lean and agility SCM has been discussed.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Overview of Interserve...........................................................................................................3
Overview of Morgan Sindall..................................................................................................3
Design and Implementation of Supply Chain Management in Construction Industry..............4
Configuration of Supply Chain of Construction Industry........................................................13
Collaboration........................................................................................................................13
Lean Supply Chain Management Principles........................................................................15
Agile Supply Chain Management........................................................................................16
Usage of Advanced Technology in Construction Companies.................................................18
Cloud Computing in Construction Industry.........................................................................18
Big Data Analytics in Construction Industry.......................................................................19
Conclusion................................................................................................................................20
References................................................................................................................................22

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Introduction
The report helps in the analysis of the supply chain management strategies which are
being followed by the entire construction industry. A modern supply chain network helps in
reducing the different complexities and this is the dynamic network for coping with such
complexities in an effective manner. Furthermore, the design along with the implementation
of the supply chain strategies within the sector will be discussed which will help in improving
the condition of the different companies in that respective industry.
The main aim and purpose of the report includes the different steps which are required
to be followed by the organizations in configuring their supply chain management through
the collaboration, lean principles along with agility. Furthermore, the usage of the advanced
technology is utilised by the companies in the entire construction industry will be discussed
to maintain the competitive advantage in comparison to the other competitors in the market.
Overview of Interserve
Interserve is one of the largest construction companies which is based in United
Kingdom. The company was founded in the year 1884 and this is multination support
services along with Construction Company in the entire UK. The revenue which has been
earned by the company is £3.25 billion in 2017 and there are more than 80000 employees
working in Interserve (Interserve.com 2018).
Overview of Morgan Sindall
Morgan Sindall is one of the construction companies which is based in UK and the
company was founded in the year 1977 and it is British based construction services which is
headquartered in London. The revenue which has been earned by the company is around
2792.7 million till the year 2017 (Morgansindall.com, 2018). The number of employees who
are working in the respective organization is 6409 till the year 2017.

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Design and Implementation of Supply Chain Management in Construction Industry
Waters and Rinsler (2017) have commented that the role of the supply chain
management in the construction industry is essential in nature which will help in maximising
the overall productivity of the organization and this helped in reducing the different
differences effectively.
The design of the supply chain management is done in such a manner which helped
the companies in the construction companies to reduce the costs along with the entire
duration of the site activities. The entire primary consideration is essential in nature which
assists in ensuring the dependable material along with labour flows as this will help in
reducing disruption to the workflow as well.
Figure: Process of SCM in Construction Industry
(Source: Monczka et al. 2015)
Furthermore, Simpson et al. (2015) has hypothesised that the main focus has to be on
the supply chain and reducing the costs in an effective manner. This rationale can be adopted

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in the entire organization which mainly focuses to achieve the wider concurrency between the
different activities which will help in reducing the duration and the total costs. Lastly, the
main focus will be on integrated management along with improvement of the supply chain
along with the production of the site. The main focus of the supply chain management is
designed in such a manner wherein it will be on clients, suppliers and contractors which will
initiate the major focus.
For instance-Interserve and Morgan Sindall are the two major companies in United
Kingdom, in which it has been seen that the supply chain management are utilised in an
effective manner which helps them in reducing the costs of operating such as this helped in
decreasing the production and purchasing costs in the organization effectively. Supply Chain
Management has helped Morgan Sindall in improving their financial position and satisfying
the customers effectively (Morgansindall.com, 2018).
Figure: Design of SCM in Construction Industry
(Source: Monczka et al. 2015)
From the above instance, this can be analysed that supply chain management helps in
managing the different activities along with the operations. Furthermore, speed is essential as

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this has been seen that companies value fast service, increasing the speed along with the
overall efficiency as well (Fernie and Sparks 2014).
Benefits of Implementing Supply Chain Management in Construction Industry
There are different kinds of implementation of the supply chain management in the
entire construction industry in which it has been seen that this has benefitted the different
construction companies appropriately. Stadtler (2015) has tried to highlight that different
business organizations or company’s wants to reduce the product development time,
furthermore to reduce the costs of production along with improving the quality of the product
which are being sold by the company to the customers in the appropriate manner.
Furthermore, Fernie and Sparks (2014) has commented and analysed that the supply
chain management looks at the entire enterprise as a whole. It includes different kinds of
relationships with other functions within the entire firm along with the different trading
partners outside the firm. It has been analysed that the supply chain management have the
entire visibility and this allows the entire development of the consistent demand and supply
chain from the different customers to the suppliers.
According to Carter,Rogers and Choi (2015), proper planning is required while
implementing supply chain related activities in the firm which will provide the companies
with planning relating to the material suppliers and third-party logistics services effectively
which provides a brief overview on the different kinds of services provided by them
appropriately. This provides the different organizations in providing better service to
customers along with reducing the inventories along with the paperwork.
Furthermore, in Interserve it has been noticed that this is one of the largest
construction companies in which the rate of the efficiency is high which is due to the
enhanced network of the supply chain management which is being adopted by them. The

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supply chain management has made remarkable kind of changes for the respective
organization as this helped the Interserve company in achieving the long-term profitability of
the organization and this helped them in gaining huge rate of efficiency as well
(Carter,Rogers and Choi 2015).
Strategies of Supply Chain Management in Interserve
According to Monczka et al. (2015), the characteristics of the supply chain
management in the entire construction industry has been classified by the following kind of
elements which is converging supply chain which helps in directing the different materials to
the site of construction and wherein the object is being assembled from the different
incoming materials.
It has been seen that Interserve uses the adoptive and agile supply chain management
in which this has helped the company in rapid planning and integrated kind of execution.
With the adoption of the respective supply chain management strategy, Interserve is one of
the major competitors in the construction industry and this has helped them in providing more
satisfaction to the customers and this has helped the company as well without disruption of
the process of manufacturing.
Advantages and Disadvantages of Supply Chain Management Strategies Used by
Interserve
Name of the
Company
Strategies Adopted
by the Companies
Advantages Disadvantages
Interserve Agile Supply Chain
Management that
helped the company in
rapid planning and
The respective agile
supply chain
management strategy
has helped Interserve
Lack of
sustainability in
the supply chain
operations which

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with the adoption of
the same, the
company has been one
of the best
construction
companies
in adapting to the
changes in the market
and this has helped the
company in adopting
the sustainability
which helped them in
accelerating their
innovation procedures.
Furthermore, with
building of adoptive
and agile supply chain
management,
Interserve has been
able to reduce the
different complexities
and the company has
gained huge
competitive
advantage.
created huge
issues in the
organizational
capability to plan
the different
operations
regarding the
trade-off decisions
as well.
For instance-Interserve Construction Company which is situated in United Kingdom
uses the agile SCM which helps the company in operating themselves in low inventory cost
and this has provided them with ability to change effectively and adjusting to the conditions
of the market as well.

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Strategies of Supply Chain Management in Morgan Sindall
Furthermore, Monczka et al. (2015) has stated and hypothesised that the process of
the supply chain management is simpler in nature and this is one of the typical make to order
supply chain with the different projects which created a new product or prototype. The author
has commented that the effectiveness and efficiency in the entire supply chain of construction
industry is weak and poor in nature and the supply chain management is essential in nature.
It has been seen that in Morgan Sindall, the SCM strategy adopted by them helps in
optimising the design of the product along with manufacturing and accelerating the profitable
kind of innovation as well. This has been seen that the product innovation and competitive
advantage helped them in increasingly stem from the selection along with management of the
technologies along with suppliers.
Advantages and Disadvantages of Supply Chain Management Strategies Used by Morgan
Sindall
Name of the
Company
Strategies Adopted
by the Companies
Advantages Disadvantages
Morgan Sindall It has applied the
collaboration supply
chain management in
which this has helped
them in achieving the
collaboration process
effective
Collaboration supply
chain management
process is reliable and
this helps in predicting
the supply of the
goods and services as
well.
Furthermore, the right
processes along with
Cloud computing
along with big
data analytics has
been not used
appropriately and
this has affected
the SCM of the
organization in a

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practices help in
managing the different
supplies in an
effective manner.
negative manner.
Overview of SCM Strategy Process
SCM strategy is essential for the organizations as this helps in smooth transition of the
different products through the supply chain. SCM strategies help in operational and sales
planning and this increases the overall productivity of the organizations as well. In this
context, Interserve and Morgan Sindall are the two construction companies that have been
taken into account to discuss the strategies used by them as to improve their position and gain
more competitive advantage as well in comparison to the other competitors in the market
(Simpson et al. 2015).
For instance- The main tasks of the construction companies is to provide their
customers with the best possible output with the virtual integration of the collaborative
planning among the different departments in order to cater the demands of the customers in
the market (Fernie and Sparks 2014). In case of Interserve, the company is required to
provide the customers with the final output that is building construction or readymade flat.
However, there are different ingredients required by the company to fulfil the dreams
of the customers. Interserve uses the agile supply chain management in which they deliver
the perfect product and service to the customers by usage of cost –efficient engine for their
growth and this helps the company in becoming successful in nature as well. It is the entire
duty of the company to check for the different essential products which is required to be
adopted by the company to gain more competitive advantage.

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However, on the other hand, Morgan Sindall uses the collaborative supply chain
management strategy in which the company tried to provide the customers with final
products with improved customer service metrics and this assisted the company in quicker
decision making in reaching to their final decisions. The suppliers of the Morgan Sindall try
to adopt the collaborative supply chain management in which this has helped them in
managing their productivity and this affected their brand image as well.
Figure: Process of SCM Strategy
(Source: Watersand and Rinsler 2017)
Overview of Supply Chain Management and Impact on Construction Industry