Supply Chain Management - Viable Solution for Profitable Construction Logistics

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Construction logistics is not only about the storage, onsite material handling or the haulage transferring of goods. The concept of construction logistics is broad and huge because of the ever growing demand of lean construction and warehousing logistics in the UK. An in-depth analysis of construction logistics needs to be done before the full profit potential of logistic process is realised. The three necessary factors through which the whole concept would be easily understandable are: supply chain collaboration, construction and supply chain integration and supply chain visibility.
Construction projects are primarily executed on financial basis that is they are broken down into fixed price segments that are then bought separately so as to conserve cash flow. Cost is controlled in this way but it does make collaboration between contractors a bit difficult plus it also affects the process of cost cutting factors. For example, parallel contractors might buy the same materials separately since there is no coordination between the contractors regarding the specifications, stock holdings or logistics delivery. Therefore, the project over stocks and over pays. At the end of the day, client has to pay the bill.
Strategies used in construction logistics:
Offsite Manufacturing (OSM):
There are various strategies used in construction logistics such as pre-manufacture or pre-assembly also known as off site manufacturing (OSM). The concept encapsulates a wide range of pre-assembled parts in supply chain by using larger units including toilet pod walls and bathrooms. This approach is common in projects like hotels etc. There are other numerous examples where they have successfully adopted offsite manufacturing as a tool to get the maximum benefit.
Offsite storage:
Construction logistics centres are meant to provide offsite storage facility especially for the local projects. Generally, Construction logistics centres include warehouse, container and open construction storage facilities. Most of the companies also offer same day and overnight transhipments when there are important load transfers from long distance vehicles to suitable site delivery.
Construction consolidation centres:
The prime objective of construction consolidation centre is to enhance the flow of construction supplies from supply chain to the point of using it on different projects. There are innumerable projects considering ground breaking consolidation technologies to ensure on time construction delivery of heavy duty machineries to enhance the construction work flows and support lean initiatives. Consolidation is not meant to provide warehouse but promote and optimise supply chain activities with improved transport features, effective management of goods and complete support during the process.
Consolidation centres take care of the transportation requirements, material handlings and export packaging, this is the reason, they can easily focus on their business operations. Moreover, they don't have to worry about the supple of goods, distribution, trade operations and other administrative issues.
CSB Logistics is one of the leading construction logistics services providers in the UK. It is serving major engineering and construction companies since 1989 with expert supply chain management, lean and just-in-time logistics, and waste management facilities. With an opportune network of warehouse and consolidation centres throughout the UK, CSB logistics offers an unparalleled expertise in controlling the supply flow of material and equipment to projects on a Just-In-Time basis.
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