Towards Demand and Supply Management in Construction Industry

Malik M. A. Khalfan1, Salman Asad2 & Peter McDermott3

1Research Fellow, Salford Centre for Research and Innovation (SCRI) in the Built and Human Environment, University of Salford, Bridgewater Building, Salford, Manchester, M7 1NU, UK, E-mail: M.M.A.Khalfan@Salford.ac.uk
2Amey plc, The Sherard Building, Edmund Halley Road, Oxford, Oxfordshire, OX4 4DQ, UK
3Centre for Construction Innovation, CUBE Building, 1st Floor, 113-115, Portland Street, Manchester, M1 6FB, UK

Abstract

Managing of supply and demand is becoming more and more important within recent construction management research and practices. The concept of aggregation is now being introduced not only to manage the supply of the construction services by the downstream supply chain participants, but at the same time, the concept of aggregating the demand is being adopted by leading clients to make most out of service providers and suppliers in terms of value. This concept of aggregation or bundling the supply and demand could be seen in practice within the UK construction industry. One of the elements which contributed towards the aggregation is the integration of the supply chain participants to adopt and respond to the current market situation. This paper will not only discuss the concept of aggregation but will also talk briefly about the other supply chain integration related concepts including client led supply chain, knowledge about the whole supply chain, effects of procurement on integration of supply chain, etc. The paper will also include examples from the UK construction industry on bunsupply chain, etc. The paper will also include examples from the UK construction industry on bundling the supply and demand. The paper will also include the recommendations/suggestions for aggregation in the light of some reports published in the UK. The paper also argues that lean practices could be adopted in managing demand and supply of services and products within the construction industry but trust, integration and collaboration among the supply chain participants are pre-requisite.

Keywords

Aggregation, Integrated supply chain, Demand and Supply management

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Reference

Khalfan, M.M.A. , Asad, S. & McDermott, P. 2005, 'Towards Demand and Supply Management in Construction Industry' In:, 13th Annual Conference of the International Group for Lean Construction. Sydney, Australia, 19-21 Jul 2005. pp 109-115

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