Typical Construction Supply Chain| Problems in the  Construction Supply Chain

    The construction of the supply chain is comprised of the network of organizations involved within the different processes and activities which produce the materials, components, and services that close to design, procure and deliver a building 

    In addition to construction firms, engineers, architects, surveyors, and allied professions are involved within the concept, design, finance, and management of the development process. 

    Sir Harold Emerson remarked the planning within the Emerson Report in 1964 that: "In no other important industry is the responsibility for the planning thus far away from the responsibilities of production. What’s more, unlike other major industries like car manufacturing or aerospace, construction activity is carried out within the outdoors exposed to the elements. 

    At various locations with each project, to a point being bespoke, unlike a typical model of car or computer. These factors have contributed to some of the problems that the Construction industry has faced, during the past 50 years or so where the construction industry has been confined to an only assembly process, with little contribution from the contractor. These characteristics have led to claims that the industry is inefficient and wasteful and that clients have historically received a bad deal and poor value for money, with projects being delivered late and over budget. The construction the supply chain is comprised of the network of organizations involved within the different processes and activities which produce the materials, components, and services that close to design, procure and deliver a building

Figure 1.2 illustrates part of a typical construction supply chain; although in reality many more sub-contractors could be involved.
    

The problems for process control and improvement that the normal supply chain approach produces are related to:

•  The various organizations which come together for a specific project;

at the top of which they disband to make new supply chains

•  Communicating data, knowledge, and style solutions across the

organizations that make up the supply chain

• Stimulating and accumulating improvement in processes that

cross the organizational borders

• Achieving goals and objectives across the supply chain, and• Stimulating, and accumulating improvement inside an organization that only exists for the duration of a project.

                                Figure 1.2 Typical construction supply chain

    Latham and Egan ReportsThe Latham (1994) and Egan (1998) Reports were the last of a series of reports that tried to analyze the workings of the UK construction industry and suggest ways in which it could become more efficient and deliver better value for money. The principal messages from the

the analysis was that the construction industry needed to concentrate and invest in:

•      Modernization
•     Innovation, and
•     Mass-production.