This action might not be possible to undo. Are you sure you want to continue?
Efficient Construction Logistics
This report identifies the range of current methods and techniques of construction logistics being used, both traditional and alternative, and the role they can play in reducing material waste. It shows what is driving their use and what the barriers are to their increased uptake. The report will inform WRAP’s work in this sector to ensure efforts are focused on the logistics methods where immediate and long-term gains can be made.
Project code: WAS004-001 Research date: September 2006 – January 2007
ISBN: [Add reference] Date: DRAFT 23rd January 2007
Front cover photograph: <This is an agency photo. Does WRAP have anything else suitable?>
[Insert appropriate disclaimer here]
Published by Waste & Resources Action Programme
The Old Academy 21 Horse Fair Banbury, Oxon OX16 0AH
Tel: 01295 819 900 Fax: 01295 819 911 E-mail: firstname.lastname@example.org
Helpline freephone 0808 100 2040
This report identifies the range of current methods and techniques of construction logistics being used, both traditional and alternative, and the role they can play in reducing material waste. It shows what is driving their use and what the barriers are to their increased uptake. The report will inform WRAP’s work in this sector to ensure efforts are focused on the logistics methods where immediate and long-term gains can be made. The context is WRAP’s 2006 – 2008 business plan, which is to: Divert 1.7m tonnes of construction waste from landfill or avoided primary extraction Influence the procurement of £10bn value of projects so that requirements are set for waste minimisation, recycling or recycled content Assist the construction sector to realise £50m savings by minimising site waste and recycling more. The research included a desk study, logistics conference, interviews and workshops with logistics suppliers, constructors and manufacturers, an online industry survey and a survey of CO2 generated by various logistics methods. Waste and logistics There is compelling evidence that on a typical construction project about 15% of the material supplied to the site (by value) is not incorporated in the construction and is therefore wasted. The interviews, workshops and online survey show that there is wide agreement that better logistics would have a substantial effect on minimising waste before it arises from the construction process. The reasons found for waste arising in construction are: Reasons Over-ordering Damage Off-cuts Packaging (both inappropriate and poor) Design Change Programming and Planning Estimated impact by percentage of value of materials received 5-10% 3-25% 5-20% 1-5% 1-5% 1-10%
The drivers for improving construction logistics are the traditional drivers of time and cost, but a new driver has emerged – the environment. Methods and techniques of logistics There are four basic methods of logistics used in the construction industry: Method Which is The business goes to the supplier to pick up materials The business has materials delivered to site The business uses portfolio analysis to segment ordering processes and call off arrangements The business co-ordinates a start-to-end process and tags information, people and materials flows. Used by About 10% of the industry About 50% of the industry About 35% of the industry
Method 1: Method 2: Method 3:
Method 4: About 5% of the industry
An assessment of the potential impact on waste arisings and CO2 emissions shows that the greatest potential benefits lie in moving the large constructors using method 3 to method 4.
Efficient Construction Logistics
equipment and plant and delivers to the sites in consolidated loads A service of frequent deliveries in work packs. design change. etc) and it has become adept at recycling waste either within the project or elsewhere. procurement. WRAP should focus on reducing the waste arising from over-ordering. and central government and agencies including defence. JIT will follow as a consequence but this must be specified in the logistics plans. cabling. WRAP should focus on new-build and refurbishment projects in the following sectors and segments: Public – housing. assembly and installation. storage. Actions to see results within a year The business case and logistics planning are the guiding principles for short-term gains.In the alternative method there are seven main techniques: Logistics planning across full supply chain Consolidation centre Just-in-time delivery to work place 4th party logistics (4PL) Logistics specialist on site Demand smoothing Integrated ICT system across full supply chain Constructors have professionally trained logisticians who can plan across the ranging. In order to influence at least £10bn of procurement. distribution. prisons and police Private – housing and retail. Of these. 'pulled' just in time for the trade to perform the next task A service to co-ordinate other logistics providers where there is more than one supply chain A service to receive deliveries and distribute materials. manufacture. logistics planning is the top priority because the need for consolidation and logistics specialist on site will emerge from this action. schools. and planning and programming by encouraging take up of these alternative logistics techniques: Logistics planning across the full supply chain Consolidation centres Logistics specialist on site JIT delivery to the workplace. Constructing Excellence is preparing a template for logistics planning and aims to have this ready for consultation by the end of March 2007. Efficient Construction Logistics 2 . civil engineering is less wasteful than building because it already practices JIT (concrete. A two-pronged approach is needed to: Convince clients about the business case and to demand change from their main contractors Educate the main contractors (and their supply chain) about the business case and techniques that will deliver. equipment and plant . health. Therefore the recommendations refer mainly to building.so that operatives handle materials only when assembling or installing A service to enable the peaks and troughs in demand to be evened out over a period of time An interoperable information system that tags and tracks materials through take off. aggregates. Conclusions and recommendations emerge from analysing the potential impact and timeframes of the techniques and assessing the potential for change in various sectors and segments of the construction industry. distribution and back loading activities A distribution facility for materials that receives materials. Recommendations The prime objective should be to influence procurement so that the tonnage diverted from landfill and money savings can be achieved. damage. The over-arching principles are: Make the business case for minimising waste Make logistics planning the norm Set up start-to-end information systems that include tag and track Understand the construction process and apply ‘lean’ principles.just in time . As a general rule.
Therefore part of the solution is to ease penalties on trade contractors (which some informed developers are already doing). Hence. Integrated ICT and off-site construction will alleviate the remaining reason for waste – off cuts – as well as overordering. It should commence immediately and run concurrently with the short term programme. Unlike existing contracts with hauliers. Integrated ICT systems and lean processes are the guiding principles for long-term gains. although there have been some advances in making packaging reusable (such as stillages for delivering windows). and planning and programming. minimising packaging waste will be difficult. Therefore WRAP needs to influence regulations and incentives that will encourage suppliers to take responsibility for reusing and recycling packaging. contracts with logistics contractors need to reflect their involvement in the risks of delivering the whole project. The work should also roll out gains pioneered in the short-term campaign. The recommended actions are all aimed at minimising waste.The risk of delay is a big driver to over-ordering. Demand smoothing 4th Party Logistics Off-site construction. The extra alternative techniques that should be encouraged in the medium/long term are: Integrated ICT. damage. None of these actions (except perhaps consolidation and onsite logistics team) will have any appreciable effect on the level of packaging. Actions to see longer-term results WRAP’s second strand of actions should focus on the long term. Efficient Construction Logistics 3 . design change. Evidence from the workshops shows that the level of packaging is already finely balanced between the minimum needed to ensure safe delivery and what is needed to survive the abuse suffered on site.
.......... 28 Appendix 2: CO2 survey ..........3 Potential impacts of techniques and time frames.......................0 Analysis ......................................................... 5 1..................0 Logistics providers.................................................................................................................................................................. 65 Efficient Construction Logistics 4 ..............................................1 Brief................1 Methods by sector and segment .................................................................................................13 4.......................................0 Conclusions ........... 25 Appendix 1: Research activities and outcomes.....................................2 Potential to reduce waste and carbon dioxide emissions ............................................................................................................................... 17 5..............................................................................................................................................................1 Focus on industry sectors and segments ..................................................... 13 4.....................................................................................................................................................................................................................................Contents 1.................... 60 Appendix 3: Logistics providers..........................................................0 Introduction .................................2 The project.................................................15 4.............................................17 5.....................3 Focus on stakeholders ...20 5...0 Recommendations ................................................................................................................................................... 11 4............6 2.....................................................................16 5...2 Focus on logistics methods and alternative techniques..... 7 3.............0 Methods of logistics....................................................................................22 6.......................................................5 1...
leisure. For each of the logistic categories identified above define: the current level of usage as a proportion of the overall market share the construction sectors they are used in (for example housing. The project should identify what is driving their use and what the barriers are to their increased uptake. which can be used to advocate the use of these techniques to reduce construction material wastage. WRAP intends to: Divert 1. with the relevant market share of this sector • the providers of these services including contact details • the specific benefits of and drivers for their use • the specific barriers to further uptake • indicative effect on material wastage levels (for bench marking against traditional practices). recycling or recycled content Assist the construction sector to realise £50m savings by minimising site waste and recycling more. Identify logistics methods which could be used as exemplars of the benefits of their use in minimising material wastage. manufacturers. the situations when these services are most appropriate.7m tonnes of construction waste from landfill or avoided primary extraction Influence the procurement of £10bn value of projects so that requirements are set for waste minimisation. as a minimum. the benefits of and drivers for use and the barriers to greater uptake.1. representing industry bodies. which construction sectors are utilising these techniques. Identify the key grouping of stakeholders in construction logistics. Efficient Construction Logistics 5 . The project will.0 1. retail. logistic providers and provide key contact details.1 Introduction Brief WRAP’s Tender Invitation dated July 2006 outlines the scope of work as follows: The aim of this work is to identify the range of current methods of construction logistics being used. • • WRAP’s business objectives In its 2006 – 2008 business plan. Identify and categorise the various logistic options which are currently used in the UK construction industry and provide a description of each and examples from typical sectors. and how this varies from sector to sector • the potential to apply to other construction sectors where not currently used • whether it is likely to have an increased or reduced level of impact on CO2 impact due to transport mileage. both traditional and alternative. who is providing the service. The project will also be used to start building a sound evidence base. Analyses of the collated data and recommendations for the key areas where WRAP should target to deliver a decrease in material wastage in the construction sector through the use of alternate logistics methods. The project deliverable will be used to inform WRAP’s work in this sector to ensure efforts are focused on the logistic methods where the largest gains can be made. contractors.). and the role they can play in reducing material wastage. provide the information outlined below: Overview of the traditional and alternate methods of construction logistics market to include the level of usage. health etc.
2 The project The following research activities and outcomes are summarised in Appendix 1: Desk study Logistics conference Workshops Industry survey CO2 survey.1. Efficient Construction Logistics 6 .
Methods 1-3 are deemed traditional and method 4 is an alternative arrangement not commonly seen. Many companies. Method 3: This is used by a larger business with a multi-project programme that can procure materials on a company basis.2. Method 4: This is used by a business that co-ordinates a start-to-end process and tags information. looking along the tiers in the supply chain the methods revert to lower order models. will use several of these methods on a project.drivers and barriers Method Drivers Method 1: The business Simple and flexible goes to the supplier to pick Requires minimal planning up materials Method 2: The business Minimise own fleet and save time has materials delivered to Suits larger organisation site Potential use or return service Method 3: The business Potential to save money by strategic uses portfolio analysis to buying and simplified administration segment ordering processes and call off arrangements Barriers No barriers – this is the entry level Inability or reluctance to plan ahead Lack of critical mass Inability or reluctance to plan ahead Lack of critical mass Efficient Construction Logistics 7 . that constructors use four basic methods of logistics: Table 1: Methods of logistics Traditional Method 1: The business Method 2: The business Method 3: The business Alternative Method 4: The business flows. The caveat is that the supply chain is a diamond and the levels of sophistication can rise again near the primary industry. people and materials Method 1: This is used by a business that takes orders on a jobbing basis and will then visits trade outlets to procure materials piecemeal. deliveries and invoicing. people and material flows. Typically methods 1-3 will use hauliers to provide transport between each step. typically larger projects with a bulk delivery requirement supplied by trade outlets.0 Methods of logistics Constructing Excellence established. however the differentiator between methods 2 and 3 is that waste is reduced by improved processes. Companies may have consolidated accounts or supply bases to improve/reduce administration costs and/or materials costs through preferential volume discount. Method 2: This is used by a business that has materials delivered to the site. Materials will be delivered to site. through interviews and workshops. large and small. warehousing. Logistics for this type of organisation will include bills of materials produced by software linked to design and they will most likely provide multiparty procurement deals for projects and apply volume discounts to total project/programme turnover. The drivers and barriers to a constructor adopting these methods are: Table 2: Methods . From the main contractor’s point of view. goes to the supplier to pick up materials has materials delivered to site uses portfolio analysis to segment ordering processes and call off arrangements co-ordinates a start-to-end process and tags information. Software is in place to share information and co-ordinate activities such as ordering. Method four will use a logistics contractor that will aid the application of timely resources.
just in time . assembly and installation. A contractor using method 4 would connect the delivery time to the immediate need for the material. people and materials flows. distribution. Logistics contractor Uses ICT and modelling to integrate resources The use of regional and national distribution centres to store goods for final distribution Manufacturers Uses ICT and modelling to integrate resources The use of warehousing to manage inventory until it can be delivered Just-in-time delivery to work place Synchronised information and materials flows in process steps Using haulers or logistics providers to deliver material via networks to wholesalers (60%) or direct to site (40%) 4th party logistics The logistics contractor manages activity from procurement to delivery and backhauling. distribution and back loading activities Consolidation centre Just-in-time delivery to work place 4th party logistics (4PL) Logistics specialist on site Demand smoothing Integrated ICT system across full supply chain A distribution facility for materials that receives materials. The centre is also used a buffer between variable process steps. that there are seven techniques which characterise the alternative method 4: Table 3: Alternative logistics techniques Logistics planning across Constructors have professionally trained logisticians who can plan across the full supply chain ranging. manufacture. etc. The logistics providers and manufacturers often used these terms but with significant differences and maturity compared to the constructors: Table 4: Different views Techniques Logistics planning across full supply chain Consolidation centre on the alternative techniques Constructors The site team will plan all infrastructure process needed to deliver projects The use of a space to deliver today the materials for tomorrow. A contractor using methods 1-3 would say JIT means a planned delivery turns up on time. through interviews and workshops. Understand process and hidden costs in traditional methods Increasing environmental constraints Clients’ expectations Potential saving in materials (up to 15%) Set-up costs Unaware of business case Relationships that do not encourage shared risk. procurement. storage. 'pulled' just in time for the trade to perform the next task A service to co-ordinate other logistics providers where there is more than one supply chain A service to receive deliveries and distribute materials.Method 4: The business co-ordinates a start-to-end process and tags information. The contractor will have the skills to manage the process steps N/A 1 ICT systems that operate on different platforms and enable seamless communication Efficient Construction Logistics 8 .so that operatives handle materials only when assembling or installing A service to enable the peaks and troughs in demand to be evened out over a period of time An interoperable1 information system that tags and tracks materials through take off. Alternative techniques Constructing Excellence established. equipment and plant and delivers to the sites in consolidated loads A service of frequent deliveries in work packs. Managing logistics agent to pull together logistics operations. open book. equipment and plant .
Logistics specialist on site The logistics contractor on site provides services to co-ordinate deliveries with trade contractors and to distribute to work places. This applies to programmes of work and sequences of processes or trade contractor interfaces Integrated ICT systems to provide take off design and procurement. welfare and some health and safety duties Potential reduction in whole-site head count Larger procurement programmes Potential to reduce mobilisation costs and benefit from long-term purchasing agreements Too many single concurrent projects overloading industry’s ability to deliver Logistics specialist on site Barriers Inertia Fire-fighting culture Fragmented industry Need to engage suppliers in new way of working Perceived cost Uncertainty about business case Fear that system will not deliver and consequence for contractual obligations and penalties Need to challenge supply chain to improve Belief that constructor can handle it inhouse Introducing a new concept Perceived cost Trade contractors do not understand the value of this shared service Demand smoothing Unable to analyse or appreciate the benefits Efficient Construction Logistics 9 . These systems reduce handling of goods to the absolute minimum The use of MRP II systems to plan factory time and out put. The drivers and barriers to a constructor adopting these techniques are: Table 5: Alternative techniques . Demand smoothing Views peaks in demand and seeks opportunities to reduce resource by flattening process peaks. N/A Materials suppliers only focus on delivery to site. Typically order systems are not connected to MRP systems The drivers for improving construction logistics are the traditional drivers of time and cost. Many systems exist in the industry but very little use of a full start-to-end use. There are many cases where a supplier will install and commission plant and equipment. etc. multi-strand supply chains Congestion Productivity Specialist can also manage security. Integrated ICT system across full supply chain The logistics sector has many similarities to construction but uses systems to co-ordinate activities across many steps. Views peaks in demand and seeks opportunities to reduce resource by flattening process peaks. but a new driver has emerged – the environment. Views peaks in demand and seeks opportunities to reduce resource by flattening process peaks. These contractors may also supply security and health and safety services.drivers and barriers Techniques Drivers Logistics planning Public pressure across full supply chain Regulators Clients Consolidation centre Congestion Potential to improve productivity Just-in-time delivery to work place Better productivity Need for synchronisation of supply and demand along the whole supply chain 4th party logistics Need for co-ordination of complex.
Integrated ICT system across full supply chain Belief that ICT/integration is key to improvement Desire to minimise material and people resources by maximising information Lack of exemplars in construction Big investment and long lead time Perceived risk of failure Worry that systems will not work together Perception that cost control is removed and losing the ability to manage risks and profits. Table 6: Exemplars of alternative techniques Techniques Exemplars in construction Logistics planning Heathrow T5 Construction sector & segment Private/airports & ports Private/commercial Private/airports & ports Private/industrial Public/housing Public/housing refurb Private/commercial Private/airports & ports Private/airports & ports Private/commercial Private/commercial across full supply chain Consolidation centre Just-in-time delivery to work place 4th party logistics Logistics specialist on site Demand smoothing Integrated ICT system across full supply chain London Construction Consolidation Centre Heathrow Consolidation Centre GlaxoSmithKlein Manchester City Council Impress Store United House Mid City Place Heathrow Terminals 1-4 T5 Central London Mid City Place and various other Stanhope developments in central London Framework agreements such as RSLs. Kelly Construction Group BIW. etc. Some exemplars of the alternative techniques exist in the construction industry. Wolseley Automotive TBA Public sector Toyota Retail and automotive Efficient Construction Logistics 10 . Tesco. Asda Walmart. Honda. Asite Exemplars in other industries Toyota. Exemplars are also offered from other industries.
a small company that claims to offer an integrated ICT system across the full supply chain). In this table. However. the learning curve for such transfers may be steep. but we will retain this classification until the returns are practically complete. large companies that claim to offer these services in other industries may be a valuable resource for transferring tried and proven techniques to construction. what works in say retailing may not be readily transferable to construction due to either different processes or ingrained resistance to change.0 Logistics providers Constructing Excellence identified 31 logistics providers with a declared interest in the construction industry. 2 2 1 2 2 2 2 1 3 2 1 2 2 1 3 Efficient Construction Logistics 11 . co-ordinate and operate the complete logistics service" Haulier means "we are mainly involved in moving goods. Having established the scope of alternative methods of logistics.3. Constructing Excellence surveyed those logistics contractors with a declared interest in construction to see which companies offered these techniques. <it is proposed to reduce this list after one more request for details> Table 7: Logistics providers and services they offer Company Service Logistic Consolidation JIT 4PL planning Ranked in the top 100 logistics contractors: DHL Logistics Full 1 2 1 1 Wincanton logistics Full 2 2 2 2 Kuehne & Nagel logistics TNT Logistics UK Gist NYK Logistics (UK) Eddie Stobart WH Malcolm ANC Group Innovate Logistics 2 2 2 2 Lloyd Fraser Full Logistics logistics Full 1 1 1 1 Stiller Group logistics Canute Full 1 2 2 3 Haulage logistics Group Hanbury Davies Currie European Transport Sutton & Son Onsite logistics Demand smoothing Integrated ICT Comment [A1]: In the final version of the report we will eliminate all companies that are hauliers only. Gaps indicate no response. It is important to recognise that some of the companies claiming to offer certain alternative techniques may not have grasped the full implications of this claim (for example. Also. These are listed in Appendix 3. The results are in Table 7. Logistics means "we plan. Others do the planning and co-ordination" 1 means “we do this in construction” 2 means “we do this in another industry but not yet in construction” 3 means “we do not offer this service”.
Company Service Logistic planning Consolidation JIT 4PL Onsite logistics Demand smoothing Integrated ICT CM Downton TM Logistics Rhys Davies Seafield Logistics Maxi Haulage Aspray Transport Erith Haulage Co Not ranked in top 100 but known to be active in construction: CSB Full 1 1 1 1 Logistics logistics Christian Salvesen CAT Logistics Wilson Full 1 1 1 1 James logistics Clipfine Elliot Full 1 3 1 1 Thomas logistics Wyse Full 1 1 1 1 Logistics logistics ASITE BIW Comment [A1]: In the final version of the report we will eliminate all companies that are hauliers only. but we will retain this classification until the returns are practically complete. 1 1 1 1 1 3 1 1 1 1 1 3 Efficient Construction Logistics 12 .
7 2.07 0.4 0.555 2.21 0. and repair and maintenance.5 0. The values of construction in each segment are taken from Construction Industry Segmentation and Analysis.1 0 1 1.75 0.1 Analysis Methods by sector and segment Constructing Excellence used the sector analysis from the desk study to create a matrix that shows the distribution of the four methods of logistics across the sectors and segments. Table 8: Use of logistics methods by sector and segment Sector Segment Estimated use of logistics methods New Public Housing Method 1 Method 2 Method 3 Method 4 Schools Method 1 Method 2 Method 3 Method 4 Universities Method 1 Method 2 Method 3 Method 4 Health Method 1 Method 2 Method 3 Method 4 Roads Method 1 Method 2 Method 3 Method 4 Railways Method 1 Method 2 Method 3 Method 4 0.25 0.1 Refurb 1.5 Values of construction < 15% Waste ~ 15% (x) > 15% x Public 0.09 0.35 0.65 1.24 0. there is a significant proportion of small trade contractors still using this entry-level method of logistics when a higher level method is not (or cannot be) imposed on them by the main contractor.7 0 0. Their most significant criticism was that the incidence of Method 1 was underestimated. Constructing Excellence estimated the levels of waste shown thus “x” and where the survey (Q16) suggested a different level this is shown thus “(x)”.25 0.875 0 0.5 0.25 0.5 0.4 0.725 0.1 0.825 2. For example the estimated use of method 1 in newbuild public housing is 25% (0.2 0.6 0 1.1 3. refurbishment.95 0 8.8 0.75 0.05 0.25 0.2 0.375 0 0.4 0 1.3 0 0 0.6 0. For example the value of method 1 newbuild public housing is £2.8 0.2 0.15 0. The estimated use of logistics methods is by proportion.3 0 2.5 0.5 0.25 Efficient Construction Logistics 13 .1 0.04 0.05 0.25 0.6 0 0.4.5 0. in even the most sophisticated projects.225 1.075 0 3.25 0.0 4.2 0.4 0. The value of construction in each segment is the product of the proportion by method and the value of the segment.4 0 0. Delegates questioned and challenged the assumptions.6 0 2.3 0.1 0.55 3.5 0 2.2 0. The workshops considered initial estimates of the distribution of the methods shown in Table 8.9 0.75 0.5 0.045 0.125 0.3 1.8 0 0.15 0.575 0 0.75 0.9 0 2.45 0.3 0.45 0 2. The segments are sub-divided into new-build.5 0 0.25 Public x 0.25 0.1 0 0 0.3 0.12 0.35 0 1.25 RMI 0.6 0.5 0.65bn.425 x (x) x 0. AMA Research Ltd.6 0 RMI 7.42 0.05 0.45 1.5 0.25 Refurb 0.775 0.25 0.75 0.25 0.5 5.5 Public x 0.975 0.55 0 0 2.7 0. 2006.3 1.8 0 0.1 0 4.54 0.75 0.19 1.6 0.75 0 0.25 0.5 0 1.25).25 Public x 0.5 0.155 1.75 Public New 2.3 0 1.7 6.3 0.325 Total 11 4.25 = £0.3 0 0.5 0.65 0 3. This observation reveals that.45 0.6 0.15 0 0.6bn x 0.625 0.8 0 0.
5 0.9 0.05 0 1.25 11.65 0.695 0.06 0.5 0.5 0.5 0.1 0.39 1.1 0.26 0.25 0.125 2.4 0.25 2.55 2.06 0.25 0.05 1.4 0.175 0 1.82 2.5 0.55 0.23 48.52 6.98 Efficient Construction Logistics 14 .4 0.175 0 15.5 0.25 0.38 2.8 0.9 0 0.1 0.15 0.225 2.1 1.1 0 2.5 0 1.6 0 0.09 0.37 0 0.5 x 0.16 0.75 1.5 0.4 0.65 1.25 4.2 0.5 0 0.84 4.7 2 (x) x 0.02 0.4 0 16.36 0.75 0 3.1 0 0.45 0.5 0.2 0.75 0.75 0.75 0.11 0.25 0.05 0. prisons and police Method 1 Method 2 Method 3 Method 4 Housing Method 1 Method 2 Method 3 Method 4 Commercial Method 1 Method 2 Method 3 Method 4 0.6 0.95 1.8 0 0.25 0.2 0 0.25 0.55 0 3.1 0.75 0.125 0 5.5 x (x) 0.2 0.3 0 0 0.7 0 0 0.Public Private Private Central Government and Agencies including defence.7 0.52 10.5 x 0.75 0.6 0.5 0.04 0.75 0 2 0 1 1 0 1.95 0 1 0 0.3 0.375 4.8 2.1 0.02 1.2 0.1 0.1 0.545 8 0 2.2 0.565 x x x 0.25 0.15 0.42 10.09 3.2 1.25 0.4 0.1 0.475 1.5 Private x 0.5 0 0.5 0.5 0.5 0.425 0 2.4 0.05 0.5 0.525 0.7 4.15 0.1 16.02 0 0.32 1.4 0.5 0.85 1.285 4.36 0.05 0.1 0.1 0.08 6.25 0.25 0 1.5 0.04 0.5 0.75 0 0.25 0 0.3 0.825 0 31.32 0.9 0.875 5.72 98.75 0.38 9.08 4.25 Private Private Private Private Retail Method 1 Method 2 Method 3 Method 4 Leisure Method 1 Method 2 Method 3 Method 4 Utilities Method 1 Method 2 Method 3 Method 4 Airports and ports Method 1 Method 2 Method 3 Method 4 Industrial Method 1 Method 2 Method 3 Method 4 VALUES Method 1 Method 2 Method 3 Method 4 Total (x) 0.37 1.15 0.6 0 0.3 0.655 34.2 0.4 0.4 0.5 0.01 0.525 0.08 1.75 0.1 0.3 0.1 0.01 0.25 0.1 0.25 0.175 0.8 0.5 0.5 0 1.6 0.75 0.1 0.9 0 0.52 3 0 2.1 0 1.5 1.
This is also the smallest and easiest group to influence. people. In terms of waste reduction. In terms of CO2 reduction. there is no advantage in moving from method 2 to 3. Table 9: Potential CO2 and waste gains by migrating logistics methods Method How they do logistics CO2 level Encourage Business that goes to 1 wholesaler to pick up 1 materials Business that has materials 2 0.2 Potential to reduce waste and carbon dioxide emissions Constructing Excellence assessed the impact on CO2 and waste reduction to compare the potential gains from migrating to a higher method of logistics.66 delivered to site Business that uses portfolio analysis to 3 segment ordering 0. moving from method 3 to 4 offers the best overall result. 0. see Appendix 2.5 In terms of both CO2 reduction and waste reduction. This therefore eliminates the small contractors (a difficult group to influence) from the change focus. Waste indices are anecdotal as no reliable measurements exist. there is no advantage in moving from method 1 to 2. this analysis indicates the focus should be on moving the major projects and contractors from logistics method 3 to method 4. Assumptions: CO2 level is derived from the CO2 survey.9 0. Efficient Construction Logistics 15 . In summary. And the potential to reduce waste is small.33 information and materials flows Waste 1 1 Encourage 0.4.66 processes and has call off arrangements Businesses that coordinate a start-to-end 4 process and tag.
medium or low. Timescales are assessed as short (< 1 year). There were no significant criticisms of the assessment offered by the researchers. The techniques in this table are ranked starting with the greater potential impact and shorter timescales.potential impact on waste and timescales Alternative technique Potential Timescale Logistics planning across full supply High Short chain Consolidation centre High Short Logistics specialist on site Medium Short Just-in-time delivery to work place High Medium Demand smoothing High Medium 4th party logistics Medium Medium Off-site construction Medium Medium Integrated ICT system across full High Long supply chain Efficient Construction Logistics 16 .3 Potential impacts of techniques and time frames Constructing Excellence assessed the potential impact of the various alternative techniques in method 4 and the timeframes needed to see results. the potential impact on waste is assessed as high. and because it would demand a change in logistics. In this table. off-site construction is included in this table because it was frequently mentioned in the workshops and the survey. medium (< 3 years> and long (> 3 years). By the third workshop. the list of alternatives was fixed and delegates were asked their views on the potential impacts and timescales. Although not a logistics technique. Table 10: Alternative techniques .4.
6 0 2.155 1.3 0 0 0. For example the potential value of procurement that could be influenced in public housing is £0.725 0.8 0.3bn (refurb) = £0.2 0.125 0.24 0.8 0 0.775 0.35 0.5 5.65 1.19 1.45 1.4 0 0.45 0 2.45 0.7 0.1 3.4 0.3 1.7 6.6 0 RMI 7.6 0 1.07 0.9 0.4 0.42 0.825 2.425 < 15% ~ 15% (x) > 15% x Potential value of selected segments £bn 0.4 0 1. Table 11 shows the results.1 0 4.6 0 0.325 Total 11 4.70 x Public Public x Efficient Construction Logistics 17 .2 0.55 3. The selection criteria used in this analysis are: Segments with a significant value of construction using method 3 logistics Segments that produce ~15% or more waste Segments where there is a relatively small number of major constructors that could (as a group) be more easily influenced than segments with a large number of smaller constructors (this will exclude repair and maintenance work).1 0.3 0 1.95 x 1.8 0.3 1.875 0 0.1 0 0 0.8 0 0.09 0.2 0.625 0.375 0 0.5 0 2.5.7 2.1 Conclusions Focus on industry sectors and segments Applying selection criteria to the analysis of sectors and segments (see 4.5 0 0.65bn (new build) + £0.0 5.555 2.95bn annually.1) indicates which industry sectors and segments offer the most potential for minimising construction waste.1 Refurb 1.1 0.2 0.15 0 0.54 0. Table 11: Selecting sectors and segments Sector Segment Values of construction £bn Waste Public Public Public Housing Method 1 Method 2 Method 3 Method 4 Schools Method 1 Method 2 Method 3 Method 4 Universities Method 1 Method 2 Method 3 Method 4 Health Method 1 Method 2 Method 3 Method 4 Roads Method 1 Method 2 Method 3 Method 4 Railways Method 1 Method 2 Method 3 Method 4 New 2.9 0 2.55 0 0 2.35 0 1.575 0 0.04 0.12 0.7 0 0.3 0 0.6 0.45 0.975 0.95 0 8.5 0 1.6 0.4 0.45 (x) x Public x 1.21 0.3 0.65 0 3.2 0.6 0.8 0 0.3 0.045 0.075 0 3.3 0 2.1 0 1 1.225 1.
55 0.16 0.6 0 0.3 0.175 0 1.75 1.8 0.65 1.5 0 1.695 0.75 0 2 0 1 1 0 1.30 x Private Private Private Private Retail Method 1 Method 2 Method 3 Method 4 Leisure Method 1 Method 2 Method 3 Method 4 Utilities Method 1 Method 2 Method 3 Method 4 Airports and ports Method 1 Method 2 Method 3 Method 4 Industrial Method 1 Method 2 Method 3 Method 4 VALUES Method 1 Method 2 Method 3 Method 4 Total (x) 3.26 0.55 0 3.84 4.1 1.1 16.7 2 (x) x 0 0.38 9.75 0 3.1 0.52 6.06 0.09 0.525 0.05 0 1.2 0.2 0.75 0.4 0.08 6.5 0.82 2.72 98.5 0 0.6 0 0.38 2.1 0 1.285 4.7 0.08 4.37 1.9 0 0.37 x x x (x) Private x 11.25 0 0.3 0 0 0.8 0 0.01 0.9 0 0.2 0 0.1 0.25 0.11 0.175 0 15.02 1.2 0.6 0.375 4.15 0.125 0 5.9 0.5 1.52 10.1 0 2.5 0.1 0.95 1.75 0 0.45 0.5 0 1.3 0.25 2.01 0.425 0 2.04 0.25 0 1.4 0.7 4.85 1.25 4.125 2.02 0.32 1.32 0.475 1.65 x 4.9 0.4 0 16.37 0 0.4 0.39 1.25 0.225 2.05 1.15 0.8 0.36 0.875 5.7 0 0 0.42 10.2 1.98 Efficient Construction Logistics 18 .565 x 0.525 0.175 0.655 34.55 2.23 48.25 0.04 0.8 2.36 0.Public Private Private Central Government and Agencies including defence.09 3.1 0.06 0.545 8 0 2.02 0 0. prisons and police Method 1 Method 2 Method 3 Method 4 Housing Method 1 Method 2 Method 3 Method 4 Commercial Method 1 Method 2 Method 3 Method 4 0.95 0 1 0 0.6 0.5 0 0.825 0 31.52 3 0 2.08 1.
prisons and police Private Housing Retail Total Value £bn 0.65 4.45 1.95 1.37 12.42 This would assist WRAP to influence £10bn of construction.70 0. The table offers figures for selecting further segments if WRAP needs a wider campaign. the sectors and segments to target are: Table 12: Target sectors and segments Sector Segment Public Housing Schools Health Central Government and Agencies including defence.30 3.In summary. Efficient Construction Logistics 19 .
This simultaneously attacks four of the Efficient Construction Logistics 20 . JIT logistics is the most effective technique because. the better the outcomes. as borne out in the workshops and industry survey. it is not an easy discipline to impose in an industry that excels in fire fighting today’s problems. The manufacturers are already subject to the Packaging and Waste Regulations. Table 13: Reasons waste arises on construction Reasons Estimated impact by percentage of value of materials received Over-ordering 5-10% Damage 3-25% Off-cuts 5-20% Packaging (both 1-5% inappropriate and poor) Design Change 1-5% Programming and Planning 1-10% Table 14 shows the potential impact that the alternative logistics techniques could have on the reasons for waste. However. However.5. In essence. from Appendix 1. by definition. the focus moves to deciding which alternative techniques offer the best potential gains. Logistics is based on rigorous assessment of the need for materials. Actions that should achieve results within a year From table 10. Table 13 shows the six reasons why materials are wasted in construction. When rigorously applied.2). with particular emphasis on the short timescale. consider: Logistics planning across full supply chain Consolidation centre Logistics specialist on site Just-in-time delivery to work place High impact High impact Medium impact High impact Short timeframe Short timeframe Short timeframe Medium timeframe It is universally accepted that the more effort put into planning. it permits delivery of only those materials that are immediately required for construction. Table 14: Impact of techniques on reasons for waste Alternative technique OverDamage Off ordering cuts Logistics planning High High Low across full supply chain Consolidation centre High High Low Logistics specialist on Medium High Medium site Just-in-time delivery to High High Low work place Demand smoothing High Low Low 4th party logistics High High Low Off-site construction Medium High High Integrated ICT system High Medium High across full supply chain Packaging Low Medium Medium Low Low Medium Low Medium Design change High Low Low High Medium Low Medium High Programming and planning High High High High High High High High Note that the impact of logistics methods to minimise waste from packaging is generally low because the balance between the minimum needed for delivery and survival on site is already finely balanced. It would therefore be better to focus on reuse and recycling of packaging. co-ordinating the manufacture and distribution. logistics planning is the number one solution. the ‘disconnection’ seems to be what happens after delivery.2 Focus on logistics methods and alternative techniques Having concluded that moving from method 3 to method 4 offers the greatest impact on both waste arisings and CO2 emissions (see 4.
consider: Demand smoothing 4th party logistics Off-site construction Integrated ICT system across full supply chain High impact Medium impact Medium impact High impact Medium timeframe Medium timeframe Medium timeframe Long timeframe These techniques all offer significant benefits and their practical implications will arise from a well executed logistics plan. design change and programming and planning. This is because consolidation and the onsite logistics team both employ Kanban systems to ‘pull’ materials when required and therefore enforce discipline and planning on a somewhat chaotic process. there is a lack of tools and incentives to make it happen. damage. Case studies of Heathrow and Mid City Place show that the use of consolidation or logistics team on site has a significant impact on JIT delivery.reasons: over-ordering. Efficient Construction Logistics 21 . Actions for longer term results From table 10. But if considered in its own right. But none is likely to achieve results within a year. That is why (on its own) it is assessed as a medium timescale. The working exemplars that exist in the industry now offer springboards to implementing these techniques more widely within a year. And when used together (such as at Stanhope’s central London sites that are served by the London Construction Consolidation Centre (LCCC) they have a compounding effect on JIT and therefore on waste.
5. as promoted in the seminal reports Constructing the Team (Latham) and Rethinking Construction (Egan). The information and lean processes. waste could be minimised. the potentials saving in resources would be up to 40 million tonnes. The corollary is that of the 275 million tonnes of materials entering into built environment per annum. This is because more accurate information regarding quantities would indeed stop materials coming to site needlessly. target costs and risk and reward strategies in procurement. have taken root. although part of the business case and planning. Publicise and promote exemplars of alternative logistics. Many key players have changed mindsets and are ready to ‘rethink’ logistics. Embrace the industry as an integrated supply chain. The business case is that up to 15% of the cost of materials could be saved if constructors could stop these materials entering the value chain. Constructing Excellence concluded that the main streams of activity needed to increase the impact of logistics on waste are: Making the business case for minimising waste Making logistics planning the norm Setting up start-to-end information systems that include tag and track Understanding the construction process and applying ‘lean’ principles. Measure the value in processes. together with the main causes of waste and solutions discovered: Table 15: Unnecessary-cost drivers. With better use of planning for logistics at the front end of the construction process and the associated information flows and systems. causes of waste and solutions Affecting Unnecessary-cost Root causes drivers People “Someone else’s problem” Site management gulf Lack of duty of care between tradesperson Lack of Motivation and material costs Attitudes/Culture Theft and damage Lack of team working and Poor skills regarding cost integration management Lack of trust Fear of shortages Focus on task Lack of understanding Poor Management and fitting instructions Skills mix Solutions Awareness training Higher performance Logistics to instil confidence Toolbox talks on waste Efficient Construction Logistics 22 . To achieve this dividend the industry needs a tipping point. The plan will embrace alternative logistics techniques that will respond to the client’s requirements and benefit the businesses in the supply chain and the project. Use open book. These are summarised below. Of these presenting the business case is essential to encourage greater take up of logistics planning. Move constructors from method 3 logistics (currently about 35% of industry) to method 4. The construction industry is realising the benefits of integration because the change in thinking. materials and people will flow through processes. Extend to tier 1 and 2 suppliers and manufacturers to achieve the transparency needed to reward innovation and best practice. The unnecessary-cost drivers in the construction process could also be valued and reduce further the costs of delivery.3 Focus on stakeholders Following the conference. led by the clients. The use of alternative logistics in the construction industry and its configuration will depend on client types and project. will need a longer term to yield results. to do the following: Produce a project logistics plan before any key appointment and ensure it reflects the client’s strategy and how information. The unnecessary-cost drivers found in this research are the result of broken processes or lack of evidenced-based management decisions.
Process Strategic planning Balancing of materials supply Contractual relationships Tendering. take and Sales push Variance in performance between process steps Not understanding upstream and down stream processes and interfaces Volume discounts Understanding true cost of the process Programmes that are not kept Service levels poorly measured Adversarial contracts and risk pushed down the supply chain Organisational structure Procurement Recycling advice and it’s cheaper to process waste than stop it occurring Fragmentation Little understanding of integration Supplier not gear to deliver logistics Focus is always on site priorities Forecasting No optimisation of supply chain Not gear to working on true costs Communication and information flows Technology an issue. Over-ordering from other internal processes Not enough recycling companies Technical and material properties need overordering Cumulative effect of allowances made in each process step. use this information to help reduce waste Backhauling Table 16 is a matrix of the alternative logistics techniques (as well as off-site construction) ranked by potential impact and showing which stakeholders need to be engaged in take up. Sales push Design processes enhance waste Materials on site payment clauses Variations Lack of design/dimensional coordination Poor information and management processes Poor bills of quantities Poor handling equipment Site management processes Inappropriate specs Supply chain weakness Damage by other trades Bills of quantities Inappropriate risk No QA processes Contractual arrangements Lean processes Quality management and control Careful information and procurement processes Consolidation and JIT processes Rigidly control materials to site Better design and take off processes Offsite construction Organise for standardisation Integration Evidence based management/KPIs Logistics plans Collaboration Holistic approach to recycling Active planning for reuse Organise for site production Designers to fully understand costs Logistics processes are high energy users. Table 16: Stakeholders and alternative techniques Stakeholders Alternative techniques. diminishing impact Logistics JIT ICT Consolidation Demand Logistics 4th party planning delivery smoothing specialist logistics on site Community x x Regulators x x x x Project x x x x x x x planners Designers x Off-site construction x x x Efficient Construction Logistics 23 .
Estimating & procurement Manufacturing Delivery Installation Specialists Disposal x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Efficient Construction Logistics 24 .
Constructing Excellence recommends a clear focus on those actions that will achieve shortterm results and those that will take longer to payback. Efficient Construction Logistics 25 . In most cases. cabling. WRAP should focus on reducing the waste arising from over-ordering. aggregates. The top players are listed in AMA’s report Construction Industry Segmentation and Analysis. JIT will follow as a consequence but this must be specified in the logistics plans. WRAP should focus on new-build and refurbishment projects in the following sectors and segments (see 5. etc) and it has become adept at recycling waste either within the project or elsewhere. and central government and agencies including defence.3: Focus on stakeholders shows who must be engaged in this process. The research revealed: Contracts that penalise trade contractors for delays are probably the biggest single cause of over-ordering because the risk of having insufficient materials weighs heavily on trade contractors who build it into tenders. The over-arching principles are: Make the business case for minimising waste Make logistics planning the norm Set up start-to-end information systems that include tag and track Understand the construction process and apply ‘lean’ principles. Of these. health. the recommended entry channel is via the major main constructors who are working in the target sectors and segments. Dialogue with clients and main contractors must include contractual terms offered to trade and logistics contractors. and planning and programming by encouraging take up of these alternative logistics techniques (see 5. logistics planning is the top priority because the need for consolidation and logistics specialist on site will emerge from this action.1: Focus on industry sectors and segments): Public – housing. Actions to see results within a year The business case and logistics planning are the guiding principles for short-term gains. prisons and police Private – housing and retail. The prime objective should be to influence procurement to reduce over-ordering so that the tonnage diverted from landfill and money savings can be achieved. A two-pronged approach is needed to: Convince clients about the business case and to demand change from their main contractors Educate the main contractors (and their supply chain) about the business case and techniques that will deliver.6. Constructing Excellence is preparing a template for logistics planning and aims to have this ready for consultation by the end of March 2007. the terms of contract should reflect their vital role in delivering projects.2: Focus on logistics methods and alternative techniques): Logistics planning across the full supply chain Consolidation centres Logistics specialist on site JIT delivery to the workplace. Contracts with hauliers usually bear no relation to project risks. design change. This is because they are relatively few in number compared to the other stakeholder groups and they lead established supply chains. Once contact is made with these major players and they are convinced of the business case.0 Recommendations Given the short timescale of WRAP’s 2006-2008 business plan. the next channel is via their clients. When stepping up from hauliers to logistics contractors. schools. Section 5. damage. In order to influence at least £10bn of procurement. As a general rule. Therefore the recommendations refer mainly to building. civil engineering is less wasteful than building because it already practices JIT (concrete.
and planning and programming. assembly. Once a start is made in public housing. warehousing and distribution. Experience in the retail and automotive industries show the importance of ICT in supply chain integration. Other agencies The key agencies that WRAP should work with include: Transport for London (TfL) Greater London Authority (GLA) Chartered Institute of Logistics and Transport (CILT) Chartered Institute of Builders (CIOB) Construction Products Association Housing Corporation Constructing Excellence. Logistics providers There appears to be logistics providers ready to offer alternative logistics techniques (see 3. The work should also roll out gains pioneered in the short-term campaign. commissioning. Retail This segment is dominated by a relatively small number of clients who have already caused big changes in their supply chains. It should commence immediately and run concurrently with the short term programme. These agreements are usually governed by key performance indicators that are periodically changed to accommodate emerging business drivers (such as minimising waste). operation. This research has not discovered any full systems in construction but there are partial systems operated by manufacturers and constructors in isolation from each other. damage. Schools. distribution.0: Logistics providers). it will be a matter of transferring the improvements to the private sector where there is a much larger potential gain. the top players are listed in AMA’s report. which is part of Constructing Excellence. refurbishment and eventual demolition.Housing Entry to housing will be easier in the public sector than the private sector (which is three times as large) because the public sector is already adopting change en masse via the Housing Corporation and the Housing Forum. design change. The extra alternative techniques that should be encouraged in the medium/long term (see 5. health and central government These segments are increasingly managed under framework agreements which have led to some consolidation and integration of supply chains. Efficient Construction Logistics 26 . Actions to see longer-term results WRAP’s second strand of actions should focus on the long term. While the number with hands-on construction experience is limited there is an abundance of expertise already providing similar services in other industries. JIT delivery and traceability of components from design through manufacture. Integrated ICT Of these. So in the meantime it will be necessary to nurture the emerging construction logistics specialists listed as ‘not ranked’ in the top 100 logistics companies. installation. Integrated ICT systems and lean processes are the guiding principles for long-term gains. for example sharing the dividends. These companies are well organised to manage logistics planning. Again. mainly driven by retail thinking. This is the only segment where the entry channel should be via the clients.2: Focus on logistics methods and alternative techniques) are: Integrated ICT. But be aware that some of these commercial relationships will make it difficult to realise the potential of waste minimisation. Therefore Constructing Excellence recommends that the entry channel should be via those logistics suppliers who claim to offer such systems. Integrated ICT and off-site construction will alleviate the remaining reason for waste – off cuts – as well as overordering. the most important is Integrated ICT because it has the power to open communication along and between supply chains. Demand smoothing 4th Party Logistics Off-site construction. But these cannot be relied upon in the short term because they will have a learning curve to adapt to construction.
minimising this waste will be difficult. In principle. results should be expected in large procurements within a couple of years. which is managed by CIRIA. 4th Party Logistics 4PL is a niche specialist logistics service that co-ordinates various supply chains for one customer (or main contractor). Funding cycles in public sector procurement will also be important. Constructing Excellence recommends WRAP would derive the most benefit from demand smoothing via the framework agreements that are consolidating demand in the public and private sectors. it is transferable to any major construction project and the need should be apparent in the logistic plan. Evidence from the workshops shows that the level of packaging is already finely balanced between the minimum needed to ensure safe delivery and what is needed to survive the abuse suffered on site. Nevertheless.Demand smoothing The construction industry is notorious for its irregular demand cycles. Hence. This is a rapidly emerging ‘sub’ industry and the recommended entry channel is via BuildOffSite. Off-site construction Also known as pre-assembly and off-site assembly. Hence. Therefore WRAP needs to influence regulations and incentives that will encourage suppliers to take responsibility for reusing and recycling packaging. this is not rated in the short-term actions because the decision to construct offsite must start with outline planning and it takes some time to percolate down the supply chain. although there have been some advances in making packaging reusable (such as stillages for delivering windows). Demand smoothing (including forecasting) is widely practised in the retail and automotive industries. WRAP should look to the logistics specialists with the know-how and technology needed to run a 4PL service. but the patterns of demand are different. Efficient Construction Logistics 27 . Packaging None of the actions mentioned so far (except perhaps consolidation and onsite logistics team) will have any appreciable effect on the level of packaging.
which is about 9% of GDP. This does not include modern logistics services that could reduce the amount of waste produced and increase recycling. Next steps: Use the extensive ranked lists in the ‘AMA’ report to identify organisations and then find key individuals (from the Constructing Excellence database) to include in surveys. Determine the scope of ‘exempted’ sites to see whether there is any valid use for this waste before using this figure in any waste elimination target. recycled and ‘disposed of’. The purpose of this report is to: assemble the knowledge that Constructing Excellence has obtained by desk study of the current state of ‘logistics’ and ‘waste minimisation’ in the construction industry suggest how better deployment of logistics could further reduce the amount of material waste in construction and increase the proportion of residual waste that can be reused or recycled identify next steps in the study. The ‘Pearce’ report is the best available summary of how the industry behaves. Although the amounts of waste quoted in the ‘Viridis’ report are probably low. Scope and amount of waste produced in construction It is apparent from a note provided by WRAP that there is conflicting data on the amounts of waste and the uses to which it is put. statistics refer to the whole of the United Kingdom. There is a large proportion of small enterprises which increases the difficulty of implementing change. Size and scope of the logistics sector serving construction The value of distribution only is about £2bn in the construction industry. Efficient Construction Logistics 28 . interviews and workshops.Appendix 1: Research activities and outcomes The research was done in five stages: Desk study Logistics conference Workshops Industry survey CO2 survey Desk study – Summary This desk study is the first stage in the “Efficient Construction Logistics” study commissioned by WRAP. Next steps: WRAP should review the analysis in this section for errors and omissions. Interviews and Workshops. Use this analysis of sectors and segments to select sites for visits to investigate the relationship between logistics and waste minimisation. Logistics Conference and Technical Report. The waste investigated in this report is solid waste. it has been possible to extrapolate equivalent data from the OPDM report. This report includes primary (factual) research as well as some secondary (interpretative) research based on tangible and anecdotal evidence. Subsequent stages are Industry Survey (including CO2). Unless stated otherwise. The ‘AMA’ report is probably the most up-to-date and extensive collection of industry statistics available. The conclusions in this section are the best guide available for the amounts of waste created. Scope and size of the construction industry The annual value of the UK construction industry is about £107 million. The industry could work towards a two-stage objective to first eliminate waste sent to landfill then eliminate waste sent to exempted sites.
the existence and scope of reverse logistics processes in the construction industry. when applied to construction. Efficient Construction Logistics 29 . existing methods of logistics. Following the 80:20 rule. Next steps: Investigate the distribution of the four models of who ‘does logistics’. The biggest single barrier to changing this is the inappropriate ownership of the logistics processes by the suppliers. Use this list to investigate existing methods of logistics and potential to improve logistics processes and offer reverse logistics. Hence they have much to offer in transferring these best practices to construction. But more work is needed to establish contacts in the key logistics contractors who have so far “declined to comment”. interviews and workshops. The Japanese automotive industry has led the way in defining waste (in terms of process and materials) and designing production systems and managing the whole supply chain to achieve better results more efficiently. Involve members of CILT’s Construction Industry Supply Chain Forum in the surveys. Eight principles of logistics. Investigate what main and trade contractors mean by logistics and how much they believe they are paying for that service. Next steps: Obtain contacts from Construction Products Association for the directors responsible for packaging and waste minimisation (may be different people) in the top product manufacturers and distributors. This might be best achieved via CILT. Market share The market share is unclear because the extent of logistics services supplied to the construction industry is largely invisible in accounts and many companies have declined to give this information. Through this rigorous management of the supply chain. The potential for both process and material waste is high. consultants and contractors in interviews and workshops. Responsibility for logistics is fragmented. Stakeholders in construction logistics There is a wealth of data on trade associations and institutes with an interest in construction logistics. Next steps: Investigate Investigate Investigate Investigate the distribution of the four logistics methods and any other methods. the take up of modern logistics methods using the eight principles of logistics as a guide. These ideas are now widespread in the UK manufacturing industry. potential to improve logistics processes and offer reverse logistics. how the methods of logistics vary according to sector and supply-tier arrangements. manufacturing has been transformed into an industry that is much less wasteful. Consolidation is an ‘easy win’ which can impose logistical discipline on a chaotic industry. Although this study focuses on material waste. Distribution channels Distribution channels in construction are numerous. Explore options to offer and/or improve reverse logistics services. Next steps: Obtain introductions to those logistics contractors whose construction interests are listed as “unknown” or “declined to comment”. The construction industry needs to embrace these ideas in order to progress from dealing with the effects of waste to eliminating the causes. The UK’s top logistics contractors are already providing modern logistics services to the retail and manufacturing industries. Use the lists mentioned above to identify persons to represent clients. The agenda will be to investigate sector and supply tier arrangements. the approach will be to focus attention on those who are best placed to influence change and those with the know-how (possibly gained in other industries) to make it happen. Interview the business development directors of logistics contractors mentioned above to determine what opportunities they see in construction and what value they can bring to improve logistics. the potential benefits of applying modern logistics in construction remain largely untapped. the broader definition of waste includes energy as well as money and human resources wasted through inefficient processes.Compared with the retail and manufacturing industries (where logistics has already been fine-tuned). show a large gap between best practice in construction and manufacturing or retailing. Logistics methods used in construction The methods of logistics vary according to the sophistication of the constructor and the technology used.
Impact of logistics on waste levels Waste arises from five sources: over-ordering.Studies in logistics and waste minimisation This work is incomplete. Waste minimisation schemes This desk study has identified potential actions to minimise waste and which stakeholder(s) is responsible. In particular. There is plenty of activity in various networks. damage. look examples of best practice in logistics services provided for construction and other industries. Efficient Construction Logistics 30 . Reducing process waste offers the best financial incentives to the stakeholders because it will have an immediate impact on profits. An important caveat is that most will be primarily involved in municipal waste. Modern logistics can be applied to every source to reduce its volume and/or increase recycling. Current industry advice is mainly limited to dealing with waste (by recycling). the accompanying reduction in material waste will achieve WRAP’s objectives. determine: the extent of use of these schemes and services other schemes and services being used to minimise waste. The activities demonstrated were: using a specialist logistics contract on site using a Consolidation Centre for distribution dealing with contaminated soil using tag technologies logistics problems on congested sites recycling generally applying logistical solutions ideas from manufacturing demolition generally recycling plasterboard recycling aggregates analysing waste substituting materials co-ordinating projects. Tackling this problem alone would reduce the volume of waste enough to achieve the first objective of eliminating waste sent to landfill. Next steps: In a survey of construction professionals. WIN is a portal for accessing those decisionmakers dealing with waste in local authorities. approaches and schemes. With permission of WIN. include these decisionmakers in a survey to identify: those with an interest in construction waste local waste minimisation schemes that address or could be extended to address construction waste. Tools exist (mainly in manufacturing and retailing) to make a radical impact on process and material waste. and for evidence of successful logistics and reverse logistics systems that may be transferable to construction. The actions can be divided into three types: Reduce the amount of waste created in the chain of construction processes Increase the amount of waste that is recycled. This section lists the benefits and lessons learned. What seems to be missing is a single strategy for joining all these initiatives together. off cuts and demolition. Once a culture is established to reduce process waste. Next steps: Obtain and draw conclusions from those selected references highlighted in Appendix 2 to inform the preparation of surveys. packaging. interviews and workshops. Demonstration projects This desk study reviews 25 demonstration projects with themes logistics and/or waste minimisation. Increase the amount of recycled materials and products that are used in new projects. The industry has a chronic problem of over-ordering.
a third issue is challenging logistics . what knowledge is required for you part of the industry to embrace logistics? Who are the stakeholders and what do they need to do to drive logistics forward? SUMMARY Drivers (in no particular order): Efficient Construction Logistics 31 . At the same time. 21st November 2006 Constructing excellence arranged this conference to support three concurrent projects all with a logistics theme: London Construction Consolidation Centre . they have not thought about it. By 2016 there will be 310. Freight Co-ordinator. sponsored by the Department of Trade & Industry Efficient construction logistics. There were some 50 delegates representing most of the stakeholders in construction logistics. Boughtflower explains the success of the London Construction Consolidation Centre which is consolidating deliveries to several inner-London sites at a warehouse outside the congestion zone. This work alone represents £10 billion of construction projects. sponsored by WRAP. Discussion 1: Drivers. sponsored by Transport for London Logistics plan for the construction industry. +15% Rising demand 0 Falling capacity -15% 2006 2016 2026 Figure A1: London’s transport dilemma: TfL’s key statistics for logisticians: By 2026 London’s population will grow by 1. TfL is planning for demand for goods and services to rise by 12% -15%. Quality. Constructing Excellence Chair: Steve Agg. road and rail capacity will fall by 10%.Logistics conference "The Art of Applying Timely Resources" London. Now.2 million. Welcome: Don Ward.a two-year trial of Consolidation to serve sites in central London. Environmental and Delivery for to utilise a holistic logistics approach or not. Chartered Institute of Logistics and Transport Agg mentioned his background in retail logistics where cost and service have been the big issues. preventing you from embracing logistics. Chief Operating Officer. In other words what will the drivers need to be to get you embrace logistics from your part of the industry? Barriers.000 new homes and office space will increase by 7-9million m2. barriers and stakeholders Drivers: Cost. what is stopping people addressing logistics in their part of the supply chain. freight movements to increase by 15% as well as increased passenger movements. Chief Executive.environment. are they the relationships in the in the industry. Transport for London (TfL) This presentation looks at the challenge of how to sustain the growth of London without clogging up the transportation network. The centre is showing substantial reductions in the environmental effects that road transport has on the capital. Presentation 1: New Drivers for Construction Logistics Adrian Boughtflower.
innovation and collaboration delivery .maximise reuse and recycling and optimise use of vehicles specialists . monitored and reviewed project planners . Presentation 3: Logistics within BAA. Presentation 2: Logistics centres and construction logistics in the urban environment Gary Sullivan. using computer-aided scheduling.educate the community and communicate to all stakeholders.• • • • • • • • • • • concern for the environment increased regulation how to make construction a sustainable industry concern about loss of materials concern about security logistics can improve KPIs: programme certainty. Stakeholders: • • • • • • • • • • the community . Managing Director.demand transparency of cost of supply and delivery disposal . productivity. BAA is in no doubt that logistics has a key role to play and logistics plans are already well advanced. this impressive video presentation shows how a consolidation centre works and the impact it has on both the environment and the efficiency of construction. General Manager. He gives examples of the hardware and tools needed and also how to strike the right balance between customer service and cost efficiency. for example JIT need to move deliveries away from peak times to avoid congestion potential to use existing fleets for 'reverse' logistics site constraints limited potential to recycle or reuse waste. Presentation 4: Advanced supply chain optimisation David Hills. BAA Brent shows how BAA's proposed redevelopment of Heathrow Airport will capture the many lessons learned in the successful construction of Terminal 5. cost contractor demand for more efficient processes. He demonstrates how his company uses mathematical optimisation to set up the most effective delivery schedule. UK Country Manager.understand the issues and demand change regulators .understand the problem and facilitate change via the design and specification estimating and procurement . Inform Hills presents what was potentially a 'heavy' technical session in a lively and interesting manner.adapt/adopt successful supply chain management systems from other industries installation . Wilson James Following on Adrian Boughtflower's explanation of the benefits of consolidation.more work on logistics plans and accounting for waste designers .a joined-up regulatory framework that is enforced.understand the waste component of cost manufacturing . Efficient Construction Logistics 32 . from a tools and people point of view Tim Brent. Barriers (in no particular order): • • • • • • • • • invisible costs and no way to extract savings from improved methods lack of understanding of the problem fragmentation of the industry lack of leadership and champions business case not yet demonstrated disconnection between investment and benefit disconnection between designers and the supply chain ineffective ICT systems an immature collaborative culture. Integrated Logistics Leader. The video (192MB) can be obtained from Adrian Blumenthal. and Ian Lister.
etc. economical and practical logistics local government and clients) plans consistent message . Table A1: Stakeholders in logistics planning Inputs Outputs Community restrictions on working hours. vibration and traffic job opportunities Regulators (central government. each representing a stakeholder. There is substantial use of consolidation in the supply process. storage and damage shortage of skilled labour waste of materials lack of planning Efficient Construction Logistics 33 . quality and time programme regulations JIT demand fulfilment access routes and hours suitable vehicles and plant off-site assembly security industrial relations community relations and local employment continuous improvement Estimating/procurement innovation clear objectives with a long-term reward view early inclusion in projects clear scope assembly plan Unnecessary-cost drivers Comment [A2]: AB to populate this column where conference did not report nice to haves diverting from agreed plan uncontrolled changes logistics consultants(!) imposed trade contractors unnecessary process steps movement. local access routes and parking authorities. He describes their nationwide distribution system.evidence that measurement of end results not regulations are 'joined up' just the parts early involvement in projects collaborative supply chains clear guidance and support less waste for disposal Designers communication and education appropriate whole-life brief specify most appropriate materials collaboration with manufacturers two-way information flow risks understood and transferred to the right stakeholders Project planners procurement route drivers: cost. Business Development Director. regulation by town planners. discussed what their inputs might be to a logistics plan and what outputs they should expect from the plan. highways. construction methods (for example consultation with developers off-site assembly) that impose less strain on the community's quality of life . what is important in relation to logistics? What is the key Logistics input into the process steps that needs to be considered/developed for this stakeholder group? What is the key output into the next stage of the process? What do you think the unnecessary-cost drivers are? How can we improve flow between each step of the process? SUMMARY The groups. Discussion 2 In the context of the stakeholders. He demonstrates environment benefits and knock-on improvements in project efficiency. The investment has yielded simultaneous service improvement AND cost reductions. fumes.Presentation 5: National distribution systems and how to save 18% of the cost of materials supply using logistics Matt Nicholls. safety. police.noise. Wolseley Nicholls explains how Wolseley embarked on a £100m investment programme three years ago to create a 'worldclass supply chain'. together with a logistics flow chart along the whole supply chain.
The current two-year business plan has specific measurable objectives for its sustainability goals. Discussion 3 How can waste can be minimised and prevented to coming onto site in the first place? What are the broken processes that need to be fixed? What does each stakeholder in the construction process need to address to fix the processes or stop waste happening? What are the key learning points from the day? SUMMARY Since this conference. shown in Table A2. Table A2: Ideas for minimising waste – potentials and timeframes Idea Potential Timeframe design for manufacture and High Medium assembly off-site assembly Medium Medium use of recycled components Low Short better use of off cuts High Short CAD-CAM See design for manufacture and assembly order what's needed High Short minimise storage High Short tag and track materials High Medium tax empty containers Low Short packaging fit for purpose Low Short logistics 'how-to-do-it' guide Medium Short Efficient Construction Logistics 34 . packaging. medium time frame means results within three years and long time frame means results will take more than three years. Short time frame means results within a year. 15% of material supplied to construction sites is wasted. He summarises the key reasons for waste arising: over-ordering. damage. Constructing Excellence has assessed the potential for each idea to minimise waste and the time frame needed to implement the idea.Inputs components of costs identification of waste risks Manufacturers manufacturing time v. Special Projects Director. This presentation sets the scene for the final discussion about how the industry can prevent waste arising in the first place. up to 45% for some materials. Blumenthal outlines the results of a desk study Constructing Excellence has done. off cuts and demolition. Construction Project Manager. WRAP and Adrian Blumenthal. Constructing Excellence Wilson explains WRAP's remit in the construction industry and outlines their ambitions to reduce the waste arising from construction as well as increased recycling. on average. The headline figures show that. customer's order/call-off demand forecast quality of forecasts involvement of customers Constructors upstream logistics (by manufacturer) visibility of demand joined up approach by other stakeholders expertise expectations and trust Outputs programme Unnecessary-cost drivers unpredictability Comment [A2]: AB to populate this column where conference did not report flow improvement communication and trust production and delivery on time and in full practicability certainty of cost and programme undamaged goods at the delivery point right place and right time managed risks Presentation 6: Uses of logistics in the UK construction industry and waste minimisation Phil Wilson.
Table A3 shows a matrix of ideas for minimising waste and who would be involved. Key learning points (in no particular order): • • • • • • • • • • Industry needs to think through logistics from start-to-end of supply chains Industry needs a strong financial driver for change Rewards needed to encourage participation Regulation and cost (NOT collective ‘will’) will drive change will create the tipping point Need to develop and publicise new approach to logistics Need for robust ICT systems that enable communication along the supply chain Cost of disposal needs to rise further Need to invest in education in order to increase awareness of the problem in order to be able to understand and improve Large number of small traders will be a particular issue in educating for change Many answers may already be 'out there'. form and function High Medium stillages and reusable packaging High Short The table on the next page summarises the ideas and suggests which stakeholders could act. especially in best practice transferring from other industries. tag and track) Process. Constructing Excellence concluded that the main streams of activity needed to increase the impact of logistics on waste are: Business case Planning Information (incl.business case High Short ICT systems High Long logistics plan with KPIs High Short rewards for adherence and delivery High Short understand cost of waste High Short education and training High Medium optimise fit. Notice how ICT systems will impact on nearly all stakeholders. Efficient Construction Logistics 35 . Following the conference.
Table A3: Ideas for minimising waste – who would be involved IDEAS design for manufacture and assembly off-site assembly use of recycled components better use of off cuts CAD-CAM order what's needed minimise storage tag and track materials tax empty containers packaging fit for purpose logistics 'how-to-do-it' guide business case ICT systems logistics plan with KPIs rewards for adherence and delivery understand cost of waste education and training optimise fit. form and function stillages and reusable packaging community regulators project planners designers x x x x x x x estimating and procurement manufacturing x x x x x x x x x delivery installation x x x x x x x x x x x x x x specialists x disposal x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x Efficient Construction Logistics 36 .
what. Separate workshops we held for each stakeholder group in order to gain a clear stakeholder response by reduce the potential for friction between stakeholders.Workshops Constructing Excellence held three workshops each attended by four to six members of these stakeholder groups: logistics contractors and consultants construction contractors construction product manufacturers. construction and manufacturing processes Table A5 shows the steps in the processes determined in each workshop. After the workshops. how and when Summarise and close Lunch Tour of the Consolidation Centre Logistics. people and materials Methods of logistics – traditional and alternative methods. Constructing Excellence correlated the three processes. how and why it occurs Causes the reasons it occurs the underlying root causes Break Solutions prioritise the root causes propose solutions Results of previous workshops Prioritise actions identify the common threads of actions the priorities – why. Table A4: Agenda for workshops Welcome and introductions Background of the research so far Logistics processes – key stages. distribution across industry Methods of logistics confirm range of traditional and alternative methods assess where methods are used benefits. forecasting Regulatory planning and specifying Design Design Take off quantities Take off quantities Project planning and programming Lead time planning Procure logistics resources Planning distribution Storage Distribution Backload Procure work packages Manufacture Deliver Assemble and install Waste management Procure materials Manufacture Deliver Waste management Efficient Construction Logistics 37 . Table A5: Processes correlated across logistics. construction and manufacturing Logistics process Construction process Manufacturing process Ranging – marketing. driver and barriers exemplars What is material waste – where. activities and tools The generic construction process Overlay logistics on the generic construction process flows of information.
Delegates added two more. making six main reasons why waste arises in construction. delivery. During the method 4: • • • • • • • • • • • • • • workshops the delegates described various techniques that they would expect in the alternative Just-in-time delivery to workplace Logistics specialist on site Consolidation Integrated electronic information systems for take-off. people and materials flows. Methods of logistics Constructing Excellence proposed four basic methods of logistics. none of the construction delegates disputed this figure. There was considerable debate about the percentage contributions of all the reasons. it was the horizontal communication and alignment of the process that raised doubts. Constructing Excellence had identified four reasons. on-site storage. Reasons waste arises Before the workshops. installation Off-site assembly (is this logistics?) Lean processes Inter-modal transport Synchronised supply chain Regional distribution centres Empowerment of logistics personnel to intervene in deliveries. manufacture. wasteful activities Managing logistics agent to pull together all logistics operations (4th Party Logistics) Detailed logistics plan Demand smoothing Contracts that engage logistics supplier on project risks and rewards. while communication was reasonably effective vertically.It was apparent from the workshops that. Traditional Method 1 Business that goes to the supplier to pick up materials Method 2 Business that has materials delivered to site Method 3 Business that uses portfolio analysis to segment ordering processes and call off arrangements Alternative Method 4 Business that co-ordinates a start-to-end process and tags information. Constructing Excellence later divided these into cause and effects and concluded that the delegates had identified seven alternative techniques: Logistics planning across full supply chain Consolidation centre Just-in-time delivery to work place 4th party logistics Logistics specialist on site Demand smoothing Integrated ICT system across full supply chain. Over-ordering Damage Off-cuts Packaging (both inappropriate and poor) Design Change Programming and Planning (5-10%) (3-25%) (5-20%) (1-5%) (1-5%) (1-10%) Efficient Construction Logistics 38 . None of the delegates offered any significant changes. Although some of the logistics specialists from other industries were quite surprised by the average 15% waste figure offered by WRAP. common user plant.
In the last workshop (with the manufacturers) Constructing Excellence offered Table 7 showing potential impact and timescales. There was no significant disagreement about this assessment. Note that although off-site assembly is offered as a solution. Efficient Construction Logistics 39 . it is not driven by logistics but would have a significant knock-on affect on logistics. Solutions: There was general agreement among delegates that the by level methods of logistics were more likely to have lower levels of waste. Table: A6: Underlying causes of each reason that waste Reasons for waste Logistics specialists Over-ordering Over specification Shrinkage Lack of trust in suppliers Lack of historical knowledge Inaccurate take off Fear of failure arises Underlying causes Constructors Unreliable information Poor take off done in a hurry “allow 10%” mentality compounded through purchasing process Compensate for expected losses Bulk-buy deals Standard pack sizes A safety net Poor labelling Too much material on site Multiple handling Inappropriate equipment and handlers Lack of training Bulk deliveries Manufacturers Trade contractors use over-ordering to mitigate the risk of not meeting the contractual obligations Poor process the takeoff and estimating Habit Damage Off-cuts Packaging (both inappropriate and poor) Design Change Programming and Planning Lack of care Congestion Poor housekeeping Over-ordering Inappropriate packaging Unsuitable pack sizes Too much or inefficient handling Unsuitable storage Poor sequential working Overzealous construction manager(!) moving trades along Pack size Shrinkage Inadequate instructions Cheaper to throw away than reuse At the standardisation in the design Packaging that is only suitable for transportation and not beyond Packaging is insufficiently robust for reuse Late client decisions Impractical design Poor handling Multiple handling Over-ordering leads to lack of interest in using off cuts Design is not considering standard size is Design Manufacturing restrictions Need to protect against the damage expected on site Multiple movement Value engineering leading to savings.Underlying causes Although the delegates offered many causes for each of the reasons. As the alternative techniques emerged there was general agreement that these would be effective in minimising waste. despite waste Suitability beyond the point of delivery is not a high priority for manufacturers Barriers to change: Lack of true and logistics people in the construction industry The percentage fee mentality is a disincentive there is a reluctance to share knowledge contracts for the inputs do not yet reflect the risk and rewards in construction. common threads emerge in Table 6.
The scope for a big impact here is low. One manufacturer reported that they are investigating switching to plastic pallets with RFID tags to enable tracking. Half the manufacturers were involved in off-site assembly.who. how. recovery and reuse. it was interesting to note there level of waste was generally less than 5% and about 70% of that is recycled. The manufacturers offered three issues for dialogue with the construction industry: • Expose the cost of waste Efficient Construction Logistics 40 . The manufacturers noted unplanned orders typically 2-5% but they expected this to be much higher for distributors. rather than permit the supply chain to 'push' more materials are now needed. There was frequent mention of the need for sites ‘pull’ only the materials needed. The amount and method of packaging is already very finely balanced by the manufacturers. The principle of standardisation is important that the concept stage and the minimisation and reuse of off cuts is important that the detail stage. This might be free (such as pallet removal and recycling) or paid (such as recycling off cuts).the good news (opportunities) and bad news about waste The level of waste is affected by decisions made in the early procurement process The solution will require more integrated-team thinking There could be a milestone in the call-off process for the final order to include in a carefully evaluation of remaining need. which may have a beneficial effect on the level of waste. To manufacturers confirmed that they are now having conversations with customers about waste. There is a need for logistics personnel on-site to be empowered to: • control what comes to site • co-ordinate on-site storage and common user plant • intervene in wasteful activities. There is a move towards buying clubs and fewer supply chains. Manufacturers mentioned Materials Resources Planning (MRP) as a technique for forecasting and creating longterm plans.Table A7: Techniques – potentials and timescales Alternative logistics techniques Potential impact Logistics plan High Consolidation centre High/medium Just-in-time delivery to the High workplace Fourth party logistics agent High/medium Demand smoothing High Logistics specialist on site Medium Integrated ICT and tagging etc High Off-site assembly High/medium Timescale to achieve results Short Short Medium Medium Medium Short Long Medium The workshops also offered some specific solutions that may or may not have a logistics impact: Table A8: Solutions Over-ordering Damage Off cuts Packaging Education . and that this had only started happening in the last 12 months. Logistics plan is needed very early in a project. The driver for this is apparently the need to know how much waste is likely to arise so that the trade contractor knows how much disposal will cost. This has led to some manufacturers offering waste management service. Other observations from the workshops: The two logistics professionals who do not work in construction said they were shocked by the apparent degree of inefficiency and level of waste. Contracts need to be redrafted so that logistics suppliers engaged in project risks. The key is better handling . It would require up to two years to get this going and a £1 million investment. training Design is a two-stage process. Although this was a small sample. equipment. This should become more detailed as it cascades down the supply chain.
Those creating the waste must be responsible forgetting would have (although there is some ambiguity about who is ‘creating’ it • Designers must take more responsibility the minimising waste. hence fewer disputes about damage • The selection of vehicles for delivery is less critical. • Efficient Construction Logistics 41 . Consolidation centres could benefit manufacturers by: • Quicker and easier deliveries • The delivery time is no longer critical • Handling after delivery is by ‘experts’.
Construction sector that is main demand for your serivces? 14. Which construction sector is the main demand for your services? Public Housing Construction sector that is main demand for your services? 25.0% 10.0% 10. Industry role 60% 50% 40% 30% 20% 10% 0% Ar ch ite B ct ui s ld in g se rv ice Cl s ie nt s -p riv at Cl e ie nt s -p ub lic Co nt ra ct or s Co un ci ls er s ci vil Series1 2. There were 190 valid responses.Industry survey The purpose of the survey was to test various ideas the project team had about waste and also to obtain ‘grass roots’ opinions about the causes and solutions. defence. the Constructing Excellence database is biased towards public housing because it includes the Housing Forum which more public sector members than private sector.0% 8.0% 6.0% 0. Questions and responses 1.0% 1 Utilities Airports and ports Industrial Other Commercial Retail Leisure Efficient Construction Logistics 42 . What is your organisation’s role in construction? Analysis 50% were contractors (assumed to be ‘constructors’) and 20% public sector clients.0% 0. The survey was conducted online by broadcasting an invitation to the Constructing Excellence database of industry contacts.0% 15. Although the value of private housing is three times public housing.0% 2. prisons and police Private Housing Schools Universities Health Roads Railway En gi ne The largest segments represented were public housing and private commercial buildings.0% 4.0% 1 Central Government incl.0% 12.0% 20.0% 5.
0% 0. What is the typical value of construction projects that you deal with? What is the typical value of construction projects that you deal with? 50.0% 40. 5.0% 30.0% 40.0% 1.0% 50. Not at all 4. Efficient Construction Logistics 43 .0% 20.0% 30.3.0% 10.0% 0.0% 40.0% 60.0% 60.0% 20.0% 20. 4.0% 10.0% 10.0% 50.0% New Build Major refurbishment Repair and maintenance More than 60% are engaged in new build.0% 1. £1 million 3. Not sure 63% say logistics affects the amount of waste “quite a lot” 90% say “quite a lot” or “a little”. Less than £1 million 2. More than to less than to less than £50 million £10 million £50 million Series1 25% are engaged in projects less than £1m in value and 70% in projects less than £10m. A little 3.0% 0. Which construction activity is the main demand for your services? Which construction activity is the main demand for your services? 70. £10 million 4.0% 30. To what extent do you think the quality of the logistics service affects the amount of waste arising from construction? To what extent do you think the quality of the logistics service effects the amount of waste arising from construction? 70. Quite a lot 2.
Do you think the logistics services used in the construction industry are fit-for-purpose in terms of ''the timely positioning of construction materials''? Do you think the logistics services used in the construction industry are fit-for-purpost in terms of "the timely positioning of construction materials 40. AY to investigate. If you answered Question 7 ''A little'' or ''Not at all'. <This chart is incorrect. Many bread and butter materials are brought on site too early. Key messages from the responses: Delivery systems are cost driven. 10% to < 20% 4. bad Key words and phrases: Arriving in bulk. A little 3.0% 1. 5% to < 10% 3. sub-contractors start missing their window. Don't know 7. if delays occur and co-ordination is lost.0% 20. thus in bulk with full loads preferred. <5% 2. tell us why.0% 30. >20% 5. How much do you think logistics costs the construction industry? These are percentages of the total cost of construction. Not at all 4.0% 10. laid down and have to be manually transferred. too early Not when promised Lack of planning Trade contractors driven by programme but logistics cannot be relied upon to keep up Not JIT Does not respond to variable demand No incentive for suppliers to plan timely delivery Outsourced to the cheapest supplier Not enough pre-assembly Risks on trade contractors. Not sure 45% say logistics is either fit for purpose ‘a little’ or not at all. There is not enough use of JIT. Quite a lot 2. Waste occurs because of lack of planning and co-ordination by all parties concerned. Logistics services aren’t sufficiently geared to the variability of demand for materials (in terms of timing and quantity). There is little co-operation or culture of planning since suppliers just want to sell their goods and don’t have any incentive to programme and plan for timely positioning of construction materials. leading to damage. Deliveries are outsourced to the cheapest man with a van or UPS or DHL who have no commitment to the project or the user. A lot of construction processes are on a critical path and. Efficient Construction Logistics 44 .> % of total cost of construction How much do you think logisitics costs the construction industry? 80 70 60 50 40 30 20 10 0 1. More than 20% don’t know.6.0% 0. 8. but don’t arrive when promised and are constrained by vehicle use.
0% 30.0% Strongly agree Agree Disagree Not sure 70% agree service levels not understood There are too many suppliers managed under adversarial contracts rather than service level agreements 50.0% 10. Here are some perceptions of logistics issues in the construction industry.0% 10.0% 40.0% Strongly agree Agree Disagree Not sure 65% agree data is unknown beyond purchasing Efficient Construction Logistics 45 .0% 60.0% 40.0% 0.0% 40.0% 0.0% Strongly agree Agree Disagree Not sure 90% agree not enough ICT Capture and management of data does not generally extend beyond purchasing 60.0% 30.0% 40.0% Strongly agree Agree Disagree Not sure 75% agree too many suppliers under adversarial contracts Construction is not yet investing enough in technologies which enable the sharing of information between customers and suppliers 70.0% 30. 9.0% 20.0% 50.0% 20. Do you agree? The service levels that customers expect are poorly understood 70. Pre-fabricated items are not used enough.0% 10.0% 0.0% 20.0% 20.0% 30.0% 60.0% 0.housekeeping and health and safety problems. Contractors’ management want to transfer all risk in materials onto subcontractors.0% 50.0% 50.0% 10. to make life easier.
0% 50.0% 50.0% Strongly agree Agree Disagree Not sure 75% agree distribution system conceals waste Material wast is taken for granted and built into the cost plan.0% 30.0% 30.0% 50.0% 0.0% Strongly agree Agree Disagree Not sure 75% agree not enough tracking of materials The way goods are sourced and distributed is largely driven by suppliers.0% 40.0% Strongly agree Agree Disagree Not sure 85% agree better design information is needed for estimating quantities Buyers tend to over order because of bulk ordering contracts and percieved risks of uncertain estimates and losses 60. have made little impact.0% 20. Standard technologies in other industries.0% Strongly agree Agree Disagree Not sure 70% agree buyers tend to over-order Efficient Construction Logistics 46 .0% 10. Hence it is difficult to reduce material waste because it cannot be tracked.0% 40.0% 20.0% 0.0% Strongly agree Agree Disagree Not sure 80% agree waste is taken for granted and built in to the cost plan More complete information is needed from designers to enable better estimating of quantities 60.0% 10.0% 40.0% 50. such as bar coding.0% 0. 60.0% 0.0% 20.0% 40.0% 20.0% 30.0% 10.0% 30.There is little visibility of good in the supply chain.0% 0.0% 30. It leads to a confusing system of distribution which conceals waste 70.0% 10.0% 20.0% 40.0% 60.0% 50. Waste of any description is not widely monitored and few targets for improvements are set 60.0% 10.
0% 0.0% 20.0% 20. information and material flows. This probably reflects a disenchantment with hauliers who merely pick up and deliver. which of these models best fits how logistics is managed. 10. Actually happens Should happen Logistics on your OUTPUT side 50.0% 40. 5. Asked who should manage logistics. it is surprising to see that respondents claim about 60% of logistics is managed by the buyers. Not sure 2.0% 60. 1. 60. Given the high proportion of lorries either owned by manufacturers or contracted to manufacturers.0% 45. tell us which of these methods of logistics applies.0% 40.0% 30.0% 5. The same pattern exists for input and output transactions.0% 30.0% 25.Estimates of quantities are often inaccurate and include allowances for the unknown 70.0% Strongly agree Agree Disagree Not sure 80% agree estimates of quantities are inaccurate with allowances for the unknown.0% 40. Contractor coordinates start to end process and tags people. 4. which of these models best fits how logistics is managed? In the types of projects you are currently involved in.0% 10.0% 5. Contractor carefully analyses material requirements.0% 0.0% 1 3.0% 30.0% 15.0% 40.0% 45.0% 0.0% 50.0% 10. 85% use the traditional methods 2 or 3 <10% use the alternative method 4.0% 35.0% Buyer contracts out logistics to third party Buyer manages Seller contracts out logistics in-house logistics to third party Seller manages logistics in-house Actually happens Should happen Efficient Construction Logistics 47 . segments the ordering processes and has call-off arrangements.0% 10. Logistics on your INPUT side 50.0% 15.0% 30. the respondents would prefer to see a move towards in-house management.0% Buyer contracts out logistics to third party Buyer manages Seller contracts out logistics in-house logistics to third party Seller manages logistics in-house The purpose was to see whether the industry thinks the buyer or the seller should be responsible for logistics. Contractor goes to wholesaler to pick up materials then drives to site. Contractor has materials delivered to the site. Looking at the input and output sides of your role.0% 50. In the types of projects you are currently involved in. and then which method you think should apply.0% 35.0% 20. but see conflicting evidence in Q12 11.0% 0.0% 20.0% 10.0% 25.
0% 15.0% 25.0% 10.0% 30.0% 20.0% 1 Just-in-time delivery to the workplace On-site logistics gang Consolidation (logistics) centre Off-site assembly Synchronised supply chain Inter-modal transport Electronic ordering AND tracking A surprisingly high proportion claim to be using JIT deliveries.0% 40.0% 45. We know the origin of SOME things we buy.0% 50. >25% do not know the origins of supplies <35% know the origins of most things Efficient Construction Logistics 48 . Although only 10% say they are using method 4 (see Q10). Are there any others? 'In Plenty of Time' delivery Strategic partnering Managed warehousing Supply & store on site prior to use Purchasing club 13.0% 25.0% 15.0% 35.0% 30. Alternative methods that affect logistics that your organisation uses 50.0% Generally.0% 20. We know the delivery cost of MOST things we buy.0% 20. When you buy materials do you know where they come from and how far they travel? When you buy materials do youknow where they come from and how far they travel? 40. Please choose any that your organisation uses in the sector you identified in question 2.0% 0.0% 0. This difference may reflect how respondents interpreted the meanings.0% 40.0% 10. we do not know the origin of things we buy.0% 5.0% 30.12. We know the origin of MOST things we buy. Here as some 'alternative' methods that affect logistics.0% 0.0% 10. a surprisingly high proportion claim to be using some of the alternative techniques in this method.0% Generally. We know the delivery costs of SOME things we buy >50% don’t know the cost of delivery <30% know the cost of delivery of most things 14.0% 5. Purchasing clubs are an emerging trend and may support initiatives to minimise waste. It emerged in the workshops that some constructors interpret JIT as meeting a delivery schedule that is governed by site constraints rather than demand for materials at the workplace. we do not know what the delivery costs.0% 35. It is included in the price. When you buy materials do you know how much the delivery costs? When you buy materials do you know how much the delivery costs? 60.
More than 15% 2. Not sure 3. Most waste is from floor. rounding up ‘just in case’ and trying to avoid minimum delivery charges rather than avoiding waste.0% 30. theft and the culture of people who are motivated only to get the job done. Damage occurs due to bad handling. 16.0% 40. Less than 15% 2.0% 20. especially since the 15% is covered in the costs at tender stage. If the industry's average waste is 15%. Key words and phrases: Over-ordering ‘just in case’ Avoid minimum delivery charges Damage due to site environmental factors Cheaper to use new than off cuts Design dimensions induce waste Lack of communication in a fragmented industry Inaccurate estimating. The lack of proper communication in the supply chain means the construction process is fragmented and there is a history of inaccurate estimating so sites become a mass of waste and surplus material.0% 1. Correlating responses to Questions 2 and 16 gives an estimate of waste in each sector: Industry Role comparison with Estimate of Waste within that sector 16 14 12 10 8 6 4 2 0 Public Housing Private Housing Schools Universities Health 4.15. The purpose was to get an industry response to the 15% headline figure and compare the relative levels of waste across the segments. More than 15% 4. Less than 15% This generally confirms what was expected. Not sure It was difficult to frame this question without leading the respondent. what is your estimate of waste for the sector you indicted in question 2? If the industry's agerage waste is 15%. On average. Design teams don’t work with architectural dimensions to reduce off cuts. The need for speed and the frequency of client changes make it cheaper to use new materials rather than take time to seek discarded ones. Nearly 60% say waste is about 15% or more. Not sure There is not enough data to form a view about some segments Efficient Construction Logistics 49 . supposed to be very ‘active’ but actually unsafe and messy. poor site management. More than 15% 4. Why do you think this happens? Key messages from the responses: Buyers over-order. what is your estimate of waste for the sector you indicated in qu 2? 50.0% 0. ceiling and wall finishes. 15% is about right 3. 15% is about right 1. Less than 15% 2. 15% of the materials supplied to construction sites in the UK are not actually used in the project and becomes waste. Many segments report 15% or more 1.0% 10. 15% is about right 3.
0% 25.0% 1.0% 30.0% 25.0% 10. More than 6.0% 15. Less than 2. 15% is about right 3. 10% to less than 15% 5. 6% to less 3% than 6% than 10% 4. 6% to less 4. 3% to less 3.0% 0. More than 15% 1.0% 10. Less than 15% 2. Estimate what PROPORTION OF THE VALUE of materials supplied to sites is a result of: Over-ordering 35. 3% to less 3. Less than 2. Less than 15% 1. More than 15% 4. Not sure 3.0% 0.0% 30.0% 20. More than 3% than 6% than 10% than 15% 15% 6.0% 5.0% 20. Less than 15% 2.0% 15. Not sure Industry Role comparison with Estimate of Waste within that sector 6 5 4 3 2 1 0 Leisure Utilities Airports and ports Industrial Other 4. Efficient Construction Logistics 50 . Not sure 15% 63% say packaging waste >3%. Less than 15% 3. More than 15% 4. Not sure 17. This is a surprisingly high value. More than 15% 2.0% 1. Not sure 45% say over-ordering is > 6% 49% say over-ordering is <6% Inappropriate or excessive packaging 35. 15% is about right 3.Industry Role comparison with Estimate of Waste within that sector 16 14 12 10 8 6 4 2 0 Roads Railway Central Government Commercial Retail 1. 15% is about right 1. Here are some suggested reasons for this waste. 10% to less 5.0% 5.
Key words and phrases: Safety net Enormous cost of delay if short of materials Inadequate information/co-ordination Laziness Efficient Construction Logistics 51 .0% 1. Less than 3% 2.0% 10.0% 20. 3% to less than 6% 3.0% 5.0% 1.0% 50. 3% to less than 6% 3.0% 1. The cost of delay is enormous compared to the cost of over-ordering.0% 0.0% 40.0% 10.0% 10.0% 30.0% 35. 3% to less than 6% 3.0% 15. 3% to less than 6% 3. More than 15% 6.0% 25. 10% to less than 10% than 15% 5. Not sure 37% say loss and theft >3% Unsuitable or faulty materials 60.0% 1. More than 15% 6. what do you think is the root cause and how can the logistics service reduce the amount of waste due to this reason? Over-ordering . 10% to less than 15% 5. 6% to less 4. More than than 10% than 15% 15% 6.0% 0.0% 30. Not sure 68% say waste from off cuts >3% 18. More 6. 6% to less than 10% 4. For each of these reasons.0% 50. Not sure 40% say waste from unsuitable or faulty materials >3% Off cuts that cannot be used in the project 30.0% 40.0% 0.root cause Key messages from the responses: Estimators over-order to provide a safety net against damage/theft because they don’t want to pay for non productive labour waiting for materials or to run short.0% 30.0% 20.0% 40.0% 0.0% 60. 6% to less 4.0% 5.0% 10. 10% to less 5.Damage 45. 6% to less than 10% 4. Not sure than 15% 67% say damage waste >3% Loss or theft 70.0% 15. Less than 3% 2. Less than 3% 2.0% 20.0% 20.0% 25. 10% to less than 15% 5. Less than 3% 2.
together with an assessment of re-usability of materials. building in principles or re-usability. There need to be more flexible stockholder and merchant systems allowing smaller quantities to be provided without cost penalty. Deliveries are not sufficiently well organised or reliable. Inappropriate or excessive packaging . The practice of over batching on site (for example in bags of repair material) often ruins the planning of materials required. But manufacturers have no incentive to collect piles of unwanted or reusable packing. Contractors have smaller yards. preferably at tender stage. contractor and supplier and the sharing of more information are needed to ensure accurate quantities. Despite their crocodile tears multi-nationals don’t give a damn about the environment. The earlier involvement of the client. They think more packaging is better packaging and that packs look nice with the company logo. Planning teams should allow more time for the sub-contractors to have their input Call off contracts should be established through multi-project consolidation centres regionally sited and managed by logistic service providers.logistics solution Key messages from the responses: Suppliers/manufacturers need to take ownership of packaging as well as product. take back schemes Consolidation centres Efficient Construction Logistics 52 . Over-ordering . being highly conservative. or just mere laziness at the planning stage makes for bad specifications. They seek to avoid all risk.logistics solution Key messages from the responses: More training is needed at the planning and specification stage. Key words and phrases Suppliers avoiding risks Big business doesn’t care No incentive to reuse packaging Small contractors tend to use small batches.root cause Key messages from the responses: Manufacturers and suppliers are the villains here. plus material suitability – with more understanding of the basics of lean. the better. using model-driven scheduling. more packagaing Key words and phrases Suppliers need to take ownership of packaging.Inadequate information or co-ordination. Inappropriate or excessive packaging . inaccurate tenders Delivery perceived to be unreliable. More precision is needed in determining exact requirements of designer and client. Rushed. making package part of purchase agreements and running better take-back schemes Handling technology needs improvement and rationalisation – for Key words and phrases: Training Sharing information More time for trade contractors to estimate Call offs from consolidation centres Logistics company included from tender onwards Supply system to be more flexible. Health and safety requirements to reduce manual handling also lead to smaller packages. There is poor care of materials on site and poor skill levels too. rely on merchants to deliver and their small batching generates more packaging. Tendering is a rushed process leading to inaccurate pricing and faulty figures which design teams rely on to their cost. The earlier logistics companies can be involved.
Key words and phrases Poor specification Lack of ‘fit for purpose’ Late changes Cost cutting Lowest price purchasing.example availability of half size pallets. Whoever is procuring not procuring the right thing according to Pull only products needed Taxes Key words and phrases Careless handling Unsuitable site arrangements Wrong vehicles and tools Delivered too soon and then meddled with. Inappropriate or incorrect use of tools and equipment. creating defined areas for materials storage for each contractor. Regional or central pick up points or consolidation centres could benefit contractors and logistic teams could specify to the supply chain the requirements for products for particular sites. Materials are often not tested for the purpose intended and there is a lack of dialogue between buyer and suppliers. More training is needed for handling and the industry needs to develop a culture which values materials properly. for example items are often delivered on large vehicles with appropriate lifting equipment. having a system of rigid cradle and returnable banding and wrapping. Unsuitable or faulty materials . Damage . Supply chains need consolidating so products are pulled rather than pushed to the supplier Non reusable packing should be taxed. so the equipment is useless and materials are pushed or dragged around with what’s available. but to sites which may be restricted in size.logistics solution Key messages from the responses: Sites need to be far better planned and managed. site management and untrained workers. Changes in specifications or design by the client at later stages. There is a lack of ownership of materials between delivery to site and installation resulting in poor storage. poor handling and thus more damage. Efficient Construction Logistics 53 . Poor communication between the varies parties. operatives. Damage . Tie payments to the reduction of damage or provide some financial incentive to site operators. and items often not dry and having to be moved several times. Items are often delivered too soon and/or insecurely on transport and people start opening packing to see what’s inside. Key words and phrases Better site planning Logistics specialist on site JIT Training in handling and value of materials Incentives ton reduce damage. storage being poorly thought out.root cause Key messages from the responses: Careless handling by drivers. Increase use of JIT practices and ensure logistic teams are flexible enough to respond. and paying more thought to lifting problems on site. Bad site management with a lack of training and supervision. protected from weather and with a hard surface. Management on site should be by a logistics company or specially designated persons. Poor access to the site and poor skill levels all round.root cause Key messages from the responses: In joint top placed are inadequate quality control measures in production and poor specifications.
though having cost benefits. Have better communications in the supply chain and greater transparency of project requirements. Unsuitable or faulty materials . Poor design and scheduling. Poor tradesmen/operative workmanship and perception that ordering more is cheaper. Off cuts that cannot be used in the project .logistics solution Key messages from the responses: Improve quality control systems at the manufacturer stage and install quality control checks at point of reception on site. Ensure specifications are carried out to better standards for purpose required with bench marks standard and inspection systems to avoid materials needing to be rejected on site. Key words and phrases Quality control at site gate Specify materials fit for purpose Corrective reporting systems Transparency Automotive industry can do it! Efficient Construction Logistics 54 . Mass production systems. Recognise the problem and form organisations that collect unwanted materials for free and match them to demand from other customers or building sites. relying on operatives to ‘sort it out’ on site. Present dimensions can often be arbitrary. Provide better training in design specification logistics and procurement with corrective action reporting systems.logistics solutions Key messages from the responses: Develop closer co-operation between contractors and sub-contractors and involve them in the design process. mean limited sizes and material loss or wastage.root cause Key messages from the responses: Poor design planning and scheduling. Train procurement staff about material sizes and link up with designers to make them aware of the implications of waste when standard sizes aren’t used. for example of ceramic tile size. Use off-site assembly as much as possible. with education. Off cuts that cannot be used in the project . The lowest price culture of clients. Learn lessons from the automotive industry. Designers should talk to manufacturers to ensure new standards meet their requirements. Standard lengths may be ordered when non-standards would be better suited. Plan a cascade of recycling on site with high-value reuse systems and Key words and phrases More contractor input to design More offsite assembly Services to exchange off cuts Dialogue between designers and manufacturers More recycle/take back schemes.specifications or drawings – sometimes they may be trying to cheapen the job or designers may be specifying the wrong thing in the first place. This would lead to greater accuracy and understanding and. Stock sizes will never suit all industry requirements. Key words and phrases Poor planning and design around stock sizes Reluctance to negotiate non-standard sizes Cheaper to use new than off cuts Trades left to ‘sort it out’. Designers may need to design sizes of rooms to reduce the need for cutting and to show awareness. even though their culture is to think of ease and time rather than waste and cost. to enable them to eliminate many cut-offs.
start take-back schemes. Efficient Construction Logistics 55 .
19. Are there any reasons we've missed? What are the root causes and can you suggest logistics solutions? Key messages from the responses: Causes Solutions The negative culture that waste Management should be made doesn’t matter, and in any case is properly accountable for waste paid for by contingency generated. Site agents need to be fired up and given incentives to reduce waste. Builders could franchise out waste control to sub contractors running waste depots or contractors could employ specialised individuals charged with helping save waste. Buildings are fundamentally over complex and materials come in too many finishes and specifications, added to which , materials in mixed packages of wood, metal, plastic and cardboard, require a great amount of time and effort to separate. Complacency and laziness of many operatives Simplification and standardisation
Key words and phrases
Managers held accountable for waste
Education to waste not want not approach, more sense of ownership and awareness of cash, then improvement of site storage conditions to help them adopt waste minimisation policies Better communication and preplanning, ideally involving suppliers, plus more quality control at the pre-production stage. More understanding of each others roles and the constraints worked under is needed – for example designers need more practical knowledge of material use. A little less haste and better briefing sessions are needed.
Education about value of waste
Changes by client due to bad briefing at design stage
Pre-planning and quality control
Collaboration and integration between people and systems in the building trade is poor with little appreciation of each others’ roles
Less haste, better briefings
20. In the construction projects you are involved in, what schemes, tools or services are used to minimise or manage the material waste that arises? Key messages from the responses: (Automated) waste segregation planning with designated skips for sorting on site and subsequent recycling Training to avoid waste from design through buying to construction stage BRE’s SMART START waste recovery tool
Key words and phrases Segregation and recycling Training SmartStart KPIs ‘Green team’ on site
Efficient Construction Logistics
Closer monitored KPIs Environmental Planning and/or appointment of a ‘green team’ on site Kanban systems Materials accurately quantified by computer software Off-site manufacture and/or pre-designed modular components
Kanban Accurate estimates with ICT Off-site assembly Sharing between sites Consolidation centre.
Reuse and sharing of resources between sites Pulling products to a consolidation centre. 21. Suggest at least one way that existing logistics services could be 'reversed' to remove material construction waste so that it can be reused or recycled economically Key messages from the responses: Collection/return of packaging – for example pallets and plasterboard to encourage reuse Centralised waste collection sites with suppliers and manufacturers getting tax breaks to collect for recycling Give bonuses for removing more waste Seek new partnerships in recycling to take logistic services away from the market and into the hands of specialist contractors Provide increased training and awareness of problems and potential solutions Standardise packages Shorten product ranges so that unused products from one project are suitable for use with the next Use more prefabricated products Make waste recycling containers mandatory on sites and use the law to change what is defined as waste so that it can be more easily reused Remove VAT from materials made with more than 30% recycled material Use empty lorries more efficiently once their cargoes have been delivered on site. 22. What do you think would be the single most effective action the construction industry could take to eliminate material waste before it arises? Key messages from the responses: Use more prefabricated products Disseminate good practice on waste management for small build projects as well as large schemes Get clients to understand the cost of going green so that short term thinking doesn’t prevent longer term involvement & get designers and clients to agree fully on what are the goalposts at the outset Improve detail/precision of design so that waste is designed out and less has to be corrected on site Key words and phrases Off-site assembly Publicise best practice Expose cost of waste and benefits of change Design out waste Managers made accountable Taxes Key words and phrases Collect and return Tax incentives Bonuses Partnerships with specialists Training Standardisation.
Efficient Construction Logistics
Make top level managers more accountable by publicising those who generate most waste Use taxes to penalise wasteful practice and/or make waste disposal statutory Give incentives to the work force, even have competitions to encourage them to suggest waste avoiding methods Ensure more time and commitment is afforded to tightening specifications and materials far ahead of starting on site Have localised storage sites to reduce transport costs and to allow trading of material between companies Have the building industry set up a waste recycling body Make less use of buying consortia that fragment effective long term supply chains and force them to use cheap low spec components. 23. Finally, thinking about your role that you told us in question 1, to what extent do you think you could influence waste minimisation?
To what extent do you think you can influence waste minimisation
100 80 60 40 20 0 Quite a lot A Little Not at all Not sure
Incentives Allow time for planning Localised distribution facipities.
<This chart is incorrect. AY to investigate.>
Efficient Construction Logistics
Efficient Construction Logistics 59 .CO2 survey This work is summarised in Appendix 2.
Appendix 2: CO2 survey The purpose of the CO2 survey was to determine the impact of moving to alternative logistics techniques. This information is derived from separate work that Constructing Excellence has done at the London Construction Consolidation Centre (LCCC) at Bermondsey. WRAP CO2 Modelling Survey December 2006 Introduction Model description Data obtained Initial results for 2007 Next steps Efficient Construction Logistics 60 .
capability Manufacturing side Contractors side Satellite warehousing costs Supply production costs Main Depot costs Main Depot costs Wholesalers Transport cost Supply to Depot Satellite to Main Transport cost Main to Main Inter-depot Transport cost Main to Satellite Transport cost Demand side Transport cost Depot to Customer Customers Efficient Construction Logistics 61 .Location of 341 suppliers Method One Contractor goes to wholesaler .
Method Two Contractor who gets materials delivered to site .capability Manufacturing side Contractors side Satellite warehousing costs Supply production costs Main Depot costs Main Depot costs Wholesalers Transport cost Supply to Depot Satellite to Main Transport cost Main to Main Inter-depot Transport cost Main to Satellite Transport cost Demand side Transport cost Depot to Customer Method Three Contractor who segements materials .capability Manufacturing side Contractors side Satellite warehousing costs Supply production costs Main Depot costs Main Depot costs Wholesalers Transport cost Supply to Depot Satellite to Main Transport cost Main to Main Inter-depot Transport cost Main to Satellite Transport cost Demand side Transport cost Depot to Customer Customers Customers Efficient Construction Logistics 62 .
Method Four Tagging information. of which 341 had a recognisable address • The 480 suppliers delivered 7673 pallets • 341 suppliers used in model delivered 2928 pallets • 97%delivery reliability • 5-15% waste in centre at end of project. people and material flow . vehicle type • 480 suppliers delivered in to Bermondsey CCC for Unilever. pallet equivalents. • 79% reduction CO2 compared to type 2 and three Customers Efficient Construction Logistics 63 .capability Manufacturing side Contractors side Satellite warehousing costs Supply production costs Consolidation Centre Main Depot costs Wholesalers Transport cost Supply to Depot Satellite to Main Transport cost Main to Main Inter-depot Transport cost Main to Satellite Transport cost Demand side Transport cost Depot to Customer C02 Survey data – Between November 2005 and July 2006 • Date. Supplier location.
Efficient Construction Logistics 64 . from order. Method two comprises the wholesaler delivering to a site using LGV vehicles up to 26 tonnes in weight. The journey from the business to the wholesaler and site is 10-15 miles on average.5 hours weighting and unloading at the site entrance. as long as the utilisation of the vehicle is used and time delays are minimised. Method four comprises tagged information and materials flows using just in time methods. based on the reduction of vehicles going to site and the reduction of Journey times. Typically placing a consolidation centre 4=8 miles from site will save 79% of the C02. Vehicles into to centre\(as would be delivered to method 2 and three) is 2500 vehicles compared to 730 vehicles out consolidated load. 1-3 pallets typically much less. typically jobbing or working in the RMI sectors. to delivery to centre and delivery to site using consolidated loads. where materials such as aggregated and steel are consumed at 1300 tones/ 600 tonnes respectively per week and that there is an adjacent rail head. the loads to be carried on narrow boat is up to 150 tonnes and 350 tonnes. the uses of inland waterway could be used. Method three as above however 60% or materials delivered to centre direct from wholesaler and 40% from manufacturer.33 factor. this utilisation of trucks and loads is 34% better than method one.Method The C02 survey represented above seeks to look at logistics methods in the construction industry and the C02 implications for the various four types captured in our study.. these contractors will journey to the local wholesaler using light van up to pick up materials for works lifting a maximum up to 1000KG. C02 as method two. Again load is 7-9 pallets. Information on Inter modal shifts for the delivery of construction materials and its impacts on C02 are negligible and suited to major projects. these vehicles travel to site and will spend approximately 1. Based on the information gained at the LCCC the survey looks at the standard logistics network used in construction and has modelled each method based on loads. Typically 7-9 pallets min. (average delivering in a multi drop process. hence .. Method one comprises those contractors. The results show that alternative logistics methods do not have a detrimental effect on C0s. this model saved 79% of the C02 on Final 8 miles.
com/ http://email@example.com/ www.smith@wincanto n.uk bryan.gistworld.com mike.wincanton.kuehne-nagel.uk/ http://www.com/ http://www.uk/index1.uk firstname.lastname@example.org Efficient Construction Logistics 65 .bolan@inovatelogis tics.Appendix 3: Logistics providers This information was derived from a list of ‘top 100’ logistics contractors supplied by the Chartered Institute of Logistics and Transport as well as a search of other logistics contractors that work only in construction (see not ranked).co.com/ www.milne@tntlogisti cs.nyklo gistics.com richard.uk/ Contact Mike Holley Gareth Smith Tony Byrne Richard Milne Bryan Jones Brian Davies Daphne Tweddle Jim Clarke Mark Mitchelle Tim Bolan Mike Dennis Larry Boulton Warren Mark Kevin Smith Business Development Manager General Manager Business Development National Facility Manager Commercial Director Business Development Manager Business Development and marketing director Business Development Manager Business Development Director Business Development Director Business Development Director Business Development Director Business Development Director Business Development Director Position Telephone 01908 244000 01249 710438 07798 792406 07796 998131 01256 891111 01525 287300 01228 822 500 01505 324 321 0800 262123 01623 727 250 07980 940803 01642 607777 01708 867001 01394 675356 E-mail mike.com larry.asp http://www.smith@hanburyd avies.hanburydavies.uk www.co.co .anc.dhl. com brian.com http://www.dennis@lloydfrase r.lloydfraser.uk email@example.com. Rank 1 2 3 5 6 9 18 20 21 24 37 38 39 43 Company DHL Logistics Wincanton Kuehne & Nagel TNT Logistics UK Gist NYK Logistics (UK) Eddie Stobart WH Malcolm ANC Group Innovate Logistics Lloyd Fraser Logistics Stiller Group Canute Haulage Group Hanbury Davies URL www.com http://www.cevalogistics.co.canutegroup.com gareth.com tony.com kevin.ne. Only those with a declared interest in construction are listed.uk firstname.lastname@example.org tweddled@eddiestobart .uk/ http://www.uk http://www.co.marks@canute email@example.com www.co.eddiestobart.com/ http://firstname.lastname@example.org.
csblogistics.uk/ http://www.co m gary.uk/ Co Not ranked in top 100: CSB Logistics www.co. co.co.aspraytransport. co.clipfine.com email@example.com www.com steve.uk www.barker@csblogisti cs.co.uk/ http://www. com Sales Director Efficient Construction Logistics 66 .com firstname.lastname@example.org Marcus Sutton Andrew Downton David Bratton Mark Heggarty Mike Hyde Richard Atkinson David Turpin Mike Lynch Manager Managing Director Business Development Director Director Business Development Manager Business Development Manager Sales Director Business Development Manager Aspray http://email@example.com firstname.lastname@example.org email@example.com mike.uk www.uk mike.currieeuropean.htm http://www.uk/ Transport 98 Erith Haulage http://www.49 54 61 63 64 76 79 84 Currie European Transport Sutton & Son CM Downton TM Logistics Rhys Davies Seafield Logistics Maxi Haulage http://firstname.lastname@example.org@asite.co.uk/ David Ross Group Commercial Director 01387 267 333 07785 257 866 01452 720242 01886 888241 029 20810587 01909 475561 01294 272531 01902 638213 0870-950 8800 07733 103232 01604 737402 01455 825800 01702 346222 08456 128811 0870 6000 026 020 8861 9312 020 7749 7880 01483 712620 david.uk/ http://www.com/currie_european_transport_ltd/in dex.hegarty@rhysdav ies.com/ http://www.co.co m john.co.net Matt Barker Stephen Hayward Andrew Radley Gary Sullivan Chris Massie John Self Neill Jackson Huw Davies Steve Cooper Director Managing Director Business Development Manager Managing Director Construction and Aviation Services Business Development Director Managing Director Regional Director matt.erith-group.co.uk stephen.tmlogistics.co.co.maxihaulage.wilsonjames.com email@example.com/ http://www. uk richardatkinson@maxih aulage.salvesen.fsuttonandson.sullivan@wilsonja firstname.lastname@example.org mark.com www.co.uk email@example.com NeillJackson@laboursit e.co.cat.uk Christian Salvesen CAT Logistics Wilson James Clipfine Elliot Thomas Wyse Logistics ASITE BIW www.elliot-thomas.co.com huw.downton.hayward@salv esen.
Oxon OX16 0AH Tel: 01295 819 900 Fax: 01295 819 911 E-mail: firstname.lastname@example.org Helpline freephone 0808 100 2040 www.org.uk .Written by: Adrian Blumenthal and Adrian Young Published by Waste & Resources Action Programme The Old Academy 21 Horse Fair Banbury.org.wrap.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue reading from where you left off, or restart the preview.