Improving supplier relationship management within the AEC sector

Due to changes in many facets of projects and organisations, relationships between firms in the delivery of construction projects have consequently become more critical for the success of the project. Whether it is a transactional exchange or series of transactions spread over a period of time, relationships need to be managed. However, the concept of managing supply chains and relationships between firms has been relatively new to construction industry. Early pioneers of the concept, primarily automotive, aerospace and manufacturing industries, have greatly benefitted from non-adversarial, long-term and collaborative relationships. Although contextual factors within those industries largely shape each industry’s approach to SCM (Supply Chain Management), it is application within the AEC industry is slowly beginning to appear in a distinct shape and form. Through a comprehensive review of literature on construction-specific SCM (cSCM), the study has identified that partnering, collaboration and trust are the three most prominent variables within the cSCM literature. Partnering and collaboration are considered to be relationship management tools, whereas trust is identified as the most significant relationship facilitator. In spite of its significance on relationship development, there is very limited research carried out on the trust aspect of relationships. By understanding how trust is built and maintained, and what the conditions that result in mistrust are, firms can better manage their supply chains and their relationships with firms in the supply chains, manage factors that result in mistrust and mitigate potential conflicts arising from mistrust. Consequently this will facilitate better collaboration, result in high-level of commitment, improve project teambuilding, and avoid conflict and adversarial relationships. Drawing on organisational relationship management literature, we argue that trust must be approached from five dimensions; economic, social, psychological, inter-personal and organisational. These dimensions are unidirectional and they must be accounted conjointly as they are interrelated and interdependent

Contractor practices for managing extended supply chain tiers

Purpose – The purpose of this paper is to examine how contractor firms manage their relationships with extended supply chain tiers and investigate the range of ICT technologies used to facilitate such practices. Design/methodology/approach – An on-line questionnaire survey was conducted to gather information about supply chain management operations, supplier relationship management and the ICT technologies used by contractor firms to manage their extended supply chain tiers. Findings – The extended supply chain relationships of contractor firms are primarily composed of contractual, technical and financial entities, but findings suggest that the vision to consider extended supply chain firms when selecting suppliers are still myopic. Majority of ICT technologies are used between Tier 1 supply chain firms and there is an inconsistency in the number of technologies adopted with the extended supply chain tiers. Despite having a high involvement relationship with Tier 2 downstream firms, findings indicate a lack of use of ICT technologies to manage the organisational, personal and technological interactions with these firms. Research limitations/implications – On the basis of different relationship types this study develops an initial framework for management of supply chains that are facilitated by relevant ICT technologies. Originality/value – This paper provides insights into the management of extended supply chain firms by contractor firms from a relationship-centric perspective and develops an initial framework for relationship-centric supply chain management

Implementing commercial information exchange: a construction supply chain case study

The concept of electronic trading (e-trading) has transformed supply chain interactions in many industries, yet little research explored its implementation by Architecture, Engineering and Construction (AEC) supply chain firms. E-trading relies on commercial information exchange by supply chain partners which is generally adopted through intermediary technology partners (Hub Providers) to facilitate the accurate and timely communication of transactional data between buyers and supplier. A case study was conducted to explore the challenges and barriers to implementation of cross-firm commercial information exchange. The study primarily involved investigation of the interfaces between software development and organizational functions assisting with the electronic exchange of commercial information (eCIX) implementation. Findings from the case study show that implementation of commercial information exchange is not an easy task with several themes of factors to be considered during delivery of such projects, namely technical, coordination, integration and organizational. The study contributes to the knowledge and deployment of e-trading solutions within the context of AEC firms, and should be of interest to the practitioners contemplating similar project

Achieving effective project delivery through improved supplier relationship management

Supplier Relationship Management (SRM) has a critical and unique role in the management of construction supply chains. Within the Architecture, Engineering and Construction (AEC) industry contractors generally rely on formal legal arrangements to manage their relationships with subcontractors and suppliers. As a result of the reliance on legal options, it is common to find confrontational and adversarial relationships in many projects. The disputes and claims that arise from such confrontation tarnish the reputation of the AEC industry and more importantly have a significant impact on project processes, with regard to cost, time, and quality. Despite the efforts to have better interactions within and between different supply chain actors, few attempts have been made to understand the variables that help develop, maintain and re-build more co-operative and collaborative relationships. Within this paper the authors provide a review of progress in construction specific supply chain management as a backdrop to an empirical investigation on improving project delivery by AEC companies. The paper is based on a study aimed at developing a framework that can serve as a roadmap on how supply chain relationships can be better monitored, controlled and managed, which is a research partnership between academia and an industrial sponsor. It reports on the first phase of the study which addresses the attributes of various types of relationships where relationships are categorised into four categories. Without an understanding of the different levels of relationships that a contractor firm has with its supply chain firms, management strategy for various relationships will not be effective as every relationship is composed of different entities that make up its ‘DNA’. The discussion on four types of relationships point out that further empirical study is needed with regards to the processes and technologies currently being applied in construction projects as well as identification of roles and responsibilities of decision makers in AEC supply chains

Post-implementation analysis of a B2B e-marketplace

The advent of Business-to-Business (B2B) e-Marketplaces gave the AEC (Architecture, Engineering and Construction) firms the opportunity to conduct more efficient and effective commercial interaction with their supply chain partners. Despite the large body of literature in generic Information Systems (IS) domain, there has been a very little work done to-date to investigate the B2B e-Marketplace systems implementation by AEC firms. By adopting a case study research method with a longitudinal approach to data collection, the study on which this paper is based explored the challenges in the adoption and on-going use of a large UK contractor firm’s eMarketplace systems from the perspective of end-users. Utilising a well-established theoretical model from the IS body of knowledge, the analysis revealed several important challenges related to system (functionality and usability), information (content quality) and service (training and support) dimensions of e-Marketplace systems implementation. Through incorporating the case study findings to the conceptual model, the study offers several suggestions for AEC firms to take on board during implementation of the B2B e-Marketplace systems

Collaborative BIM in the cloud and the communication tools to support it

Process in the AEC industry is characterised by the distributed and temporary nature of project teams; discipline specific teams engage in a highly collaborative process with not yet fully standardised requirements for information exchange which often results in chaotic communication patterns. This collaborative process makes communication and coordination challenging and intensifies the need for sophisticated software tools. Efforts to address some of the UK construction industry’s problems have seen rapid acceleration of BIM adoption in recent years. The exchange of interoperable building information models across teams provides the opportunity for an improved communication paradigm, where the “structured model” rather than the “document” acts as the focal unit of communication. Since collaborators are geographically distributed, this communication type finds its natural environment in online collaboration platforms hosting building information models. Effective collaboration requires coordinated communication and communicated coordination. BIM can be expressed as the “language of construction” and requires structure and standardization even on the human communication level. The life-cycle approach will pose additional collaboration requirements. Integrated, intuitive communication tools for BIM should replace e-mail. A preliminary analysis of data from the usage of online collaboration software, including network graph representations, provides some insight into usage patterns and serves as a basis for similar analyses as more of project data becomes available. Improved results would come from a better designed analysis of more projects

BIM and online collabortion platforms - an investigation into emerging requirements

It is widely documented that productivity in the AEC/FM industry has been hampered by fragmentation, low innovation, adversarial relationships and slow adoption of Information Communication Technologies. The rising recognition of the potential of Building Information Modelling (BIM), combined with online collaboration platforms, provides an opportunity for addressing those industry obstacles. This study reviews existing literature pertaining to how BIM and online collaboration platforms can facilitate the much desired integration within the industry. Subsequently, a scoping study for UK online collaboration platforms is carried out. Despite the expected benefits of BIM technology, it has not been widely embedded within the UK AEC/FM industry. This is mainly attributed to the incompatibility of current practices with BIM. Current collaborative practices still result in some rework, suboptimal design decisions, constructability issues and waste. Factors relating to the introduction of collaborative BIM practices revolve around a shared vision, clear responsibilities and technology ease of use. The essential role of online collaboration platforms for construction organizations reaching full BIM maturity is not yet fully appreciated. Additionally, corporate BIM strategies lack a clear vision. The scoping study identifies some trends in the evolution of online collaboration platform functionalities and sets the ground for a gap analysis