Integration of suppliers and manufacturers within construction supply chains through innovative procurement strategies

Abstract EN

Recent innovative initiatives within the public sector construction procurement are challenging traditional, non-relational ways of procuring construction projects.

The new concepts and practices involved in innovative procurement methods for construction are intended to empower clients to exercise more control over the supply chain and generate more co-operation among project participants.

The initiatives aim to: bring project members closer together; integrate the supply chain; create greater trust; develop relationships on a long term basis; introduce a pain and gain culture; and reuse the knowledge on succeeding projects.

This paper, with examples from the UK construction industry, presents ways clients are currently exercising their roles in order to integrate the downstream supply chain members, including suppliers and manufacturers of products.

This paper particularly highlights the benefits of, and the motivation towards innovative procurement resulting into integration of downstream supply chain members through two case studies, done as part of a supply chain integration project at the Salford Centre for Research and Innovation (SCRI).

The case studies demonstrate how organisations involved have promoted innovative thinking across the supply chain through innovative procurement.

The case studies also highlight some of the critical factors in integrating suppliers and manufacturers at the beginning of any project.

The paper concludes that through clients’ initiatives, there is a great potential to utilise expertise and knowledge of suppliers and manufacturers at the outset of a project, in order to achieve effective planning and delivery of the whole project, as well as greater integration among supply chain members working on the project.