The United States homebuilding industry experienced significant consolidation over the past ten years. The largest builders in the industry grew from building around 7,500 homes per year to over 30,000 homes per year. The supply chains for homebuilding were not designed to facilitate this level of mass production of homes. To achieve economies of scale in the Denver production homebuilding market, recent process improvements have been made by USBuild Corporation, a new player in the supply chain. These improvements have focused on using the Internet, a proprietary information system, and a new distribution channel to integrate information and material flows. The resulting opportunities for value creation in USBuild’s “e-chain” supply chain during the first six months of operation in 2001 were significant. This paper identifies the value drivers in the case of USBuild’s supply chain intermediation in the Denver market. Further, the value drivers are classified using an established framework for how Internet-enabled information technologies are impacting the extended supply chain.
Supply chain management, Internet, information technology, production homebuilding.
Taylor, J. & Bjornsson, H. 2002, 'Identification and Classification of Value Drivers for a New Production Homebuilding Supply Chain' In:, Formoso, C.T. & Ballard, G., 10th Annual Conference of the International Group for Lean Construction. Gramado, Brazil, 6-8 Aug 2002.