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STI
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NCONSTRUCTI
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edby
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oupMember
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FEBRUARY2023
Tabl
eofCont
ent
s

Chapt
erOne 1

1.
1Int
roduct
ion 1

1.
2St
atementoft
hepr
obl
em 2

Chapt
erTwo 2

2.
1.Theor
eti
call
it
erat
urer
evi
ew 2

2.
1.1Pr
ojectandPr
ojectManagement
:Def
ini
ti
on 2

2.
1.2Whati
saConst
ruct
ionPr
oject
?Howi
sitmanaged? 3

2.
1.3Logi
sti
csi
naConst
ruct
ionPr
oject 5

2.
1.4Basi
csofl
ogi
sti
csmanagementwi
thi
nConst
ruct
ionpr
oject
s 8

2.
1.5.Char
act
eri
sti
cst
hatdi
sti
ngui
shConst
ruct
ionl
ogi
sti
csf
rom ot
hert
ypesof
l
ogi
sti
cs 9

2.
1.6.Const
ruct
ionMat
eri
alsManagementonConst
ruct
ionPr
oject
s 9

2.
1.7.Chal
lengesoft
heConst
ruct
ionLogi
sti
cs 12

2.
1.8.I
mpact
sofpoorconst
ruct
ionl
ogi
sti
csmanagement
s 13

2.
1.9Met
hodsandt
echni
quest
oImpr
ovi
ngpoorconst
ruct
ionl
ogi
sti
cs
management
s 15

2.
10.Successf
act
orsofaconst
ruct
ionl
ogi
sti
cs 18

2.
11.Theur
bant
ranspor
tpr
obl
em 19

2.
12.Logi
sti
csSy
stem Anal
ysi
s 20
2.
12.
1Tr
anspor
tat
ion 21

2.
12.
2War
ehouse/
Sit
eSt
orage 22

2.
12.
3Mat
eri
alshandl
ing 23

2.
13Concept
ualFr
amewor
k 24

2.
2Empi
ri
calr
evi
ew 25

2.
2.1I
nter
nat
ionalExper
ienceofLogi
sti
csManagementSy
stem i
ntheConst
ruct
ion
I
ndust
ry 25

Logi
sti
csmanagementi
nEur
ope 25

2.
2.1.
1.Pol
and’
sexper
ience 25

2.
2.1.
2.Swedenexper
ience 27

2.
2.1.
3.Br
azi
l’
sexper
ience 28

2.
2.1.
4.Sout
hAf
ri
ca’
sexper
ience 30

2.
2.1.
5.Et
hiopi
a’sexper
ience 30

CHAPTER3 32

3.
1Dat
aAnal
ysi
sandDi
scussi
on 32

CHAPTER4:SUMMARY 34

4.
1Summar
y 34

4.
2.Concl
usi
on 38

Ref
erence 39
ACRONYM

GDP:
GrossDomest
icPr
oduct
PASDEP:
Planf
orAccel
erat
edandSust
ainedDev
elopmentt
oEndPov
ert
y
MSE:
Micr
oandSmal
lEnt
erpr
ise
CLM:
Counci
lofLogi
sti
csManagement
HCB:
Hol
l
owConcr
eteBl
ock
PMI
:Pr
ojectManagementI
nst
it
ute
MLP:
Mat
eri
alLogi
sti
cPl
an
SCM-Suppl
yChai
nManagement
CLM-Counci
lofLogi
sti
csManagement
CSCMP-Counci
lofSuppl
yChai
nManagementPr
ofessi
onal
s
TPL-Thi
rdPar
it
yLogi
sti
cs
CCC-Const
ruct
ionConsol
i
dat
ionCent
re
CLC-Const
ruct
ionLogi
sti
csCent
re
UCC-Ur
banConst
ruct
ionCent
re
JI
T-Just
-In-Ti
me
I
CT-I
nfor
mat
ionandCommuni
cat
ionTechnol
ogy
(
EDE)
-El
ect
roni
cDat
aExchange
UNEP:
Uni
tedNat
ionsEnv
ironmentPr
ogr
am me
(
IHDP)
=Int
egr
atedHousi
ngDev
elopmentPr
ogr
am
Chapt
erOne

1.
1Int
roduct
ion

Act
ivi
ti
es oft
he const
ruct
ion i
ndust
ry ar
evi
talt
othe achi
evementofnat
ional
soci
o-economi
cdev
elopmentgoal
sbypr
ovi
dingshel
ter
,inf
rast
ruct
ureandempl
oyment
.
Act
ivi
ti
esbyt
heconst
ruct
ioni
ndust
ryaf
fectnear
lyev
eryaspectoft
heeconomyand
t
he i
ndust
ryi
s one oft
he dr
ivi
ng f
act
ors oft
he economi
c gr
owt
h ofdev
elopi
ng
count
ri
es(
Bet
lej
ewskaandPot
kány
,2015)
.Theconst
ruct
ioni
ndust
rypl
aysav
italpar
t
i
neconomyofanat
ionsi
ncei
tpr
ovi
desdemandf
ort
hepr
oduct
ionofgoodsand
ser
vicesf
rom ot
herr
elat
edi
ndust
ri
es.Becauseoft
hisi
tcr
eat
essi
gni
fi
cantbusi
ness
t
hroughmul
ti
pli
eri
mpact
s.I
tincl
udesar
equestf
orl
abor(
incompet
ent
,semi
-ski
l
ledand
t
alent
ed)
,land and capi
tal
.Itcont
ri
but
est
othe nat
ionaly
iel
d and r
einf
orcest
he
dev
elopmentofot
herdi
vi
sionst
hroughacompl
exf
ramewor
kofl
i
nkages(
EEA,2008)
.
Bui
l
dingnew housesorr
enov
ati
ngol
derhousi
ngst
ocki
sanat
uralwayf
oraci
ty
t
odev
elop.Howev
er,const
ruct
ion pr
oject
s ar
epr
oduci
ngt
heendpr
oduct(
housesor
i
nfr
ast
ruct
ure)att
hepl
ace ofconsumpt
ion(EkeskärandRudber
g,2016)
,meani
ng
t
hatamul
ti
tude ofmat
eri
alsandr
esour
ces need t
o be del
i
ver
ed t
o,and r
emov
ed
f
rom,each si
te att
he cor
rectt
ime(Li
ndén andJosephson,
2013)
.Thi
sleadst
o
addi
ti
onalt
ranspor
tfl
owsbei
ngcr
eat
ed,compet
ingf
ort
heexi
sti
ngi
nfr
ast
ruct
urewi
th
ot
hert
raf
fi
cuser
s.Duboi
sand Gadde (
2002)st
ruggl
e t
hat i
nsi
de const
ruct
ion
pr
oject
s,t
hecoupl
i
ngs bet
ween v
ari
ousst
akehol
der
s and act
ivi
ti
es on-
sit
e ar
e
char
act
eri
zed as t
ight
,meani
ng t
hati
nsi
de a pr
ojecteachst
akehol
derandact
ivi
ty
i
sdependentononeanot
her
.Att
hesamet
ime,t
heconst
ruct
ionpr
oject
sar
eov
erseen
f
rom t
he t
empor
ary nat
ure ofconst
ruct
ion pr
oject
s al
so means t
hose di
ff
erent
t
empor
arywor
ker
s,sub-
cont
ract
ors,speci
ali
stsandbui
l
der
s"needt
obet
ender
edand
pr
ocur
edev
eryt
imeanewconst
ruct
ionpr
ojecti
slaunched.Duboi
sandGadde(
2000)
emphasi
zet
hatasmuchas75per
centoft
hepr
oductv
aluei
saddedbysub-
cont
ract
ors
andsuppl
i
ers.Wi
tht
heshor
t-
ter
m nat
urei
nmi
nd,t
hei
ndust
ryhasst
ruggl
edt
ofi
nd
goodf
ormsofl
ong-
ter
m col
l
abor
ati
ver
elat
ionshi
ps.Thi
sofcour
seal
soaf
fect
show
l
ogi
sti
csandmat
eri
aldel
i
ver
iesar
emanaged.Di
ff
erentst
akehol
der
scane.
g.pl
ace

1|Page
di
ff
erentdemandsandconsi
der
ati
onsonhowconst
ruct
ionl
ogi
sti
csi
stobecar
ri
edout
.
Managi
ngpr
oject
sundert
hesecompl
excondi
ti
onsi
sdi
ff
icul
tduet
ohi
ghl
evel
sof
uncer
tai
nty
, as wel
las a mi
xtur
e ofor
gani
zat
ions (
Locat
ell
i
,2014)
.In essence,
const
ruct
ionar
easf
acet
wopr
obl
ems;t
heur
banmat
eri
aldel
i
ver
ypr
obl
em andt
he
pr
obl
em ofcoor
dinat
ingmul
ti
pleconst
ruct
ionst
akehol
der
s.Thi
sassi
gnmentassesses
t
hei
mpor
tanceandt
hei
mpact
soft
heconst
ruct
ionl
ogi
sti
csmanagementpr
obl
ems
t
hataf
fect
ingconst
ruct
ionpr
oject
s.Andal
thoughdev
elopal
ter
nat
ivemeasur
est
o
i
mpr
oveconst
ruct
ionl
ogi
sti
csmanagement
.

1.
2St
atementoft
hepr
obl
em

Const
ruct
ionpr
oject
stakepl
acewher
esi
tesar
eext
remel
ycr
owded;t
hisci
rcumst
ance
i
srepet
it
ivef
orConst
ruct
ionpr
oject
s.I
n huge ci
ti
es wher
eforv
irt
ual
l
yno st
orage
space exi
sts,a goodmanagementofl
ogi
sti
csi
nor
dert
ogetmat
eri
als,peopl
e,
i
nfor
mat
ion,
machi
nes,
andequi
pmentt
othewor
kfor
cei
naLeanmanner(
Just
-i
n-Ti
me)
i
svi
tal
l
yimpor
tantt
opr
ojectsuccess(
Mossman,2007)
.I
thas been r
epor
ted t
hata
35%r
educt
ion i
n mat
eri
alwast
age coul
d be achi
eved by adopt
ing mor
eef
fi
cient
l
ogi
sti
cs pr
act
ices and t
he key t
o achi
evi
ng i
t i
sthe dev
elopmentand
i
mpl
ement
ati
onofav
igor
ousconst
ruct
ionl
ogi
sti
cspl
an.Thesepl
ansar
eani
mpor
tant
t
oolt
ohel
ptheconst
ruct
ionsect
orensur
ethatt
her
ightmat
eri
alsar
eint
her
ightpl
ace
att
her
ightt
imei
nther
ightquant
it
yandwi
tht
her
ightcost(
Mat
eri
alLogi
sti
cspl
an,
2007)
.Theconst
ruct
ion si
tesar
eav
eryi
ntensel
ogi
sti
calspot
,in whi
ch al
otof
mat
eri
alt
hati
s bei
ngmanagedi
nacompl
i
cat
edwayi
nor
dert
oconst
ructandf
ulf
il
l
r
equi
rement
s.Howev
er,t
her
eisl
ackofi
ntegr
ati
on ofsuppl
i
ers and pr
oducer
s as
wel
las st
ocks and mar
ket
s whi
ch ar
eresul
ts ofl
ack ofhar
moni
zat
ionoft
he
cl
i
ent
’sr
equi
rement
swi
thmat
eri
alsandi
nfor
mat
ionf
lows.Ther
efor
e,Const
ruct
ioni
n
ur
ban ar
eas f
aces t
wo pr
obl
ems;t
he mat
eri
alf
low pr
obl
em and t
he pr
obl
em of
coor
dinat
ingmul
ti
pleconst
ruct
ionst
akehol
der
s.

2|Page
Chapt
erTwo

2.
1.Theor
eti
call
it
erat
urer
evi
ew

2.
1.1Pr
ojectandPr
ojectManagement
:Def
ini
ti
on

Numer
ousr
esear
cher
sdef
inepr
ojecti
nsev
eralway
s,Abadi
rH.Yi
mam,(
2011)def
ined
pr
ojectasat
empor
ary endeav
or t
hat has def
ini
te begi
nni
ng and end t
ime
under
taken nextt
o speci
fi
c cy
cle ofi
nit
iat
ion,def
ini
ti
on,pl
anni
ng,and execut
ion
andwhi
chi
sar
esul
tofnov
elor
gani
zat
ionandcoor
dinat
ionofhuman,
mat
eri
aland
f
inanci
alr
esour
ces.(
Proj
ectManagementI
nst
it
ute(
PMI
),2004)
.Resear
chby(
Lest
er,
2006)def
inesapr
ojectasauni
quesetofcoor
dinat
edact
ivi
ti
es,wi
thdef
ini
test
art
ing
and f
ini
shi
ng poi
nts,under
taken byan i
ndi
vi
dualoror
gani
zat
ion t
o meetspeci
fi
c
obj
ect
iveswi
thi
ndef
inedschedul
e,costandper
for
mancepar
amet
ers. Si
mil
arl
ya
numberofdef
ini
ti
onsar
egi
venf
orpr
ojectmanagement
,Theappl
i
cat
ionandi
ntegr
ati
on
ofmoder
n managementand pr
oject managementknowl
edge,ski
l
ls,t
ool
s and
t
echni
ques t
otheov
eral
lpl
anni
ng,di
rect
ing ,coor
dinat
ing ,
moni
tor
ing and cont
rol
ofal
ldi
mensi
ons ofa pr
ojectf
rom i
tsi
ncept
iont
o compl
eti
on,
andt
hemot
ivat
ion
ofal
lthose i
nvol
vedt
opr
oduce t
he pr
oduct,
ser
vice or
resul
toft
hepr
ojectont
ime,
wi
thi
n aut
hor
ized cost
,and t
othe r
equi
red qual
i
ty and r
equi
rement
,and t
othe
sat
isf
act
ionofpar
ti
cipant
sorst
akehol
der
s.(
Char
ter
edI
nst
it
uteofBui
l
ding,2002)
,
(
Fewi
ngs,2005)
.In gener
al,i
n mostofr
esear
ches,managementofapr
ojecti
s
gener
all
yper
cei
vedt
obeconcer
nedwi
tht
hepl
anni
ng,or
gani
zi
ng,andcont
rolofan
ongoi
ngpr
ocessoract
ivi
tysuchast
hepr
oduct
ionofapr
oductordel
i
ver
yofaser
vice.
Pr
ojectmanagementi
sdi
ff
erenti
nthati
tref
lect
sacommi
tmentofr
esour
cesand
peopl
etoat
ypi
cal
l
yimpor
tantact
ivi
tyf
orar
elat
ivel
yshor
tti
mef
rame,af
terwhi
cht
he
managementef
for
tisdi
ssol
ved.Pr
oject
sdonothav
ethecont
inui
tyofsuper
visi
ont
hat
i
sty
picali
nthemanagementofapr
oduct
ionpr
ocess.Assuch,t
hef
eat
uresand
char
act
eri
sti
csofpr
ojectmanagementt
end t
o besomewhatuni
que.Pr
oject
sar
e
subj
ect
edt
o av
ari
etyofl
aws and r
egul
ati
onst
hatai
mtoensur
e publ
i
c saf
etyand
mi
nimi
ze env
ironment
ali
mpact
s.Compar
ed t
o mostot
heri
ndust
ri
es,
const
ruct
ion
pr
oject
sinv
olv
e r
elat
ivel
y i
ntensi
ve l
abor use,andconsume l
argeamount of

3|Page
mat
eri
alsandphy
sical
tool
s.

2.
1.2Whati
saConst
ruct
ionPr
oject
?Howi
sitmanaged?

Const
ruct
ionpr
oject
sar
emanagedi
ndi
ff
erentway
sfr
om t
hemanagementofot
her
pr
oject
s.(
Abadi
rH.Yi
mam,2011)r
esear
chi
ndi
cat
est
hatConst
ruct
ionpr
oject
sar
e
managedi
ndi
ff
erentway
sfr
om t
hemanagementofot
herpr
oject
sandt
hedi
ff
erence
mai
nlyst
emsf
rom t
henat
ureandchar
act
eri
sti
csofconst
ruct
ionpr
oject
s.Some ar
e
usual
l
y capi
tal i
ntensi
ve, compl
ex; and r
equi
re si
gni
fi
cantmanagement ski
l
ls,
i
nvol
vement and coor
dinat
ion of a wi
de r
ange of exper
tsi
n v
ari
ous f
iel
ds.
(
Char
ter
edI
nst
it
uteofBui
l
ding,2002)
.Theyal
somustaddr
esst
hegeogr
aphyand
condi
ti
onsoft
hepr
ojectsi
teandt
her
elat
ionoft
hepr
ojectt
otheenv
ironment
.(Pr
oject
ManagementI
nst
it
ute(
PMI
),2007)
.Pr
oject
sar
esubj
ect
edt
oav
ari
etyofl
awsand
r
egul
ati
onst
hatai
mtoensur
epubl
i
csaf
etyandmi
nimi
zeenv
ironment
ali
mpact
s.And
al
so compar
edt
omost ot
her i
ndust
ri
es, const
ruct
ionpr
oject
sinv
olv
e r
elat
ivel
y
i
ntensi
vel
aboruse,and consume l
arge amountofmat
eri
als and phy
sicalt
ool
s.
(
Jekal
e,2004)
.Const
ruct
ion,nat
ionalori
nter
nat
ional
,st
andsorf
all
sbyt
hequal
i
ty
ofi
tspr
ojectmanagement
.Apr
ojectt
hati
snotpr
oper
lymanagedcanqui
ckl
yheadf
or
di
sast
er.Oneoft
hemai
nchar
act
eri
sti
csoft
heconst
ruct
ioni
ndust
ryi
sthati
tfi
rstand
f
oremost i
s bui
l
t ar
ound t
empor
ary or
gani
zat
ions and r
elat
ionshi
ps. Di
ff
erent
cont
ract
ors, sub-
cont
ract
ors, consul
tant
s,bui
l
der
s" mer
chant
s and l
ogi
sti
cs
oper
ator
s need t
o be t
ender
ed and pr
ocur
ed ev
ery t
ime a new const
ruct
ion
pr
ojecti
slaunched,
maki
ngl
ong-
ter
mrel
ati
onshi
psdi
ff
icul
ttoachi
eve.Asdi
scussedby
Duboi
s and Gadde (
2000)
,the const
ruct
ion i
ndust
ryi
s char
act
eri
zed wi
th hi
gh
l
evel
s of r
esour
cedependencyandut
il
izest
empor
arynet
wor
kst
ruct
urest
oensur
e
t
hatt
hisr
esour
cedependencecanbemet
.Const
ruct
ionpr
ojector
gani
zat
ionst
hus
of
tenbecomedi
sconnect
edf
rom t
hecompanyl
evelandhar
dtomanageandi
ntegr
ate
t
hroughoutt
hepr
ocess,f
rom dr
awi
ngst
ofi
nishedbui
l
ding.(
Duboi
sandGadde,2000)
.
Duboi
sand Gadde(
2002)char
act
eri
zest
henet
wor
kst
ruct
ureoft
heconst
ruct
ion
i
ndust
ryast
wo-
fol
d;t
hei
ndust
ryhast
ightr
elat
ionshi
pnet
wor
kswi
thi
nthepr
oject
s,
andamuchl
oosernet
wor
kst
ruct
urebet
ween t
he par
entcompani
es and pr
oject
s

4|Page
and bet
ween di
ff
erentconst
ruct
ion st
akehol
der
s.Thi
smeanst
hatwi
thi
napr
oject
eachst
akehol
derandact
ivi
tyi
sdependentononeanot
her
.Act
ivi
ti
esof
tenhav
etobe
per
for
medi
nsequenceandi
foneact
ivi
tyi
sdel
ayed,
allt
hef
oll
owi
ngact
ivi
ti
eswi
l
lal
so
bedel
ayed(
Duboi
sandGadde,2002)
.Si
mil
arl
y,wor
ker
sandi
nst
all
ersneedt
ohav
e
mat
eri
alsi
npl
aceandi
fdel
i
ver
iesar
edel
ayedt
hewhol
epr
ojectcanbedel
ayed.Thus,
t
her
eis a need wi
thi
nthe pr
ojectenv
ironment f
or t
ight coupl
i
ngs bet
ween
st
akehol
der
sinor
dert
o mov
ethepr
ojectf
orwar
datt
heest
abl
i
shedpace.Att
he
same t
ime, t
hey acknowl
edge t
hat t
he coupl
i
ngs bet
ween t
he pr
oject and
companyl
evel
sar
eloose.Theconst
ruct
ionpr
oject
sar
emanagedf
rom t
hepr
oject
or
gani
zat
ionandt
hepar
entcompanyhasl
i
ttl
econt
rolov
ert
heev
ery
dayoper
ati
ons
of t
he pr
oject (
Duboi
s and Gadde,2002)
. Wi
thi
nthese net
wor
kst
ruct
ures,t
he
bi
gger st
akehol
der
shav
ebar
gai
ningpower duet
othei
rsi
ze and cent
ralposi
ti
on;
wher
eas smal
l
er,mor
e speci
ali
zed st
akehol
der
s hav
e bar
gai
ning powert
hrough
t
hei
rassetspeci
fi
cit
y.

5|Page
Fi
gur
e2.
1-Theconst
ruct
ioni
ndust
ryst
ruct
ureoft
ightandl
oosecoupl
ings
The f
ragment
ati
on oft
he i
ndust
ryi
s howev
er,notonl
ydi
sadv
ant
ageous.Sev
eral
r
esear
cher
shi
ghl
i
ghtt
hatt
hef
ragment
ed nat
ureoft
heconst
ruct
ioni
ndust
ryal
so
al
l
owsf
orgr
eatf
lexi
bil
i
tyatt
hepr
ojectl
evel
,al
l
owi
ngf
orl
ocal
adapt
ati
onsandpr
obl
em
sol
vi
ng,butal
soasameanst
ohandl
ethecompl
exi
tyoft
hei
ndust
ry(
Duboi
sand
Gadde,2002)
.Att
hesamet
ime,t
her
eisacal
lfort
hei
ndust
ryt
omov
eaway f
rom
adv
ersar
ialr
elat
ionshi
ps t
owar
ds mor
e col
l
abor
ati
ve wor
king pr
act
ices and l
ong-
t
erm commi
tment(
JosephsonandSaukkor
ii
pi,
2007)
.

2.
1.3Logi
sti
csi
naConst
ruct
ionPr
oject

Thegoalf
oranyconst
ruct
ionpr
ojecti
stodel
i
vert
hepr
oject
iont
imeandoncost
tot
he
st
ipul
atedqual
i
ty.Theconst
ruct
ioni
ndust
ryi
spr
oduci
ngi
tsendpr
oduct
s(t
hehouseor
i
nfr
ast
ruct
ure)f
rom v
astamountofmat
eri
alst
hathav
etobedel
i
ver
edt
othepl
ace
of consumpt
ion (
EkeskärandRudberg,2016;Thunber
g,etal
.,2017)
.Thus,t
he
const
ruct
ioni
ndust
ryi
sgr
eat
lydependentonmat
eri
alsar
ri
vi
ngt
osi
tewhenneeded.
Thepr
ocessofmanagi
ngt
hesemat
eri
alf
lowsi
scal
l
edl
ogi
sti
cs.Const
ruct
ionl
ogi
sti
cs
asa di
sci
pli
ne f
ir
stcamet
o pr
omi
nence i
ntheUKi
n 1980s wi
tht
hest
artof
const
ruct
ion management
,pr
ocur
ement mechani
sm wher
eby t
he cl
i
ent di
rect
ly
cont
ract
s wi
th speci
ali
stt
rade cont
ract
ors,pr
ojectmanagementcont
ract
ort
o
coor
dinat
eandmanaget
heconst
ruct
ionpr
ocess.Logi
sti
cshav
esev
eraldef
ini
ti
ons
butf
ort
hepur
poseoft
hisr
esear
cht
hemostt
hreedef
ini
ti
onsar
edescr
ibedbel
ow:
-
Logi
sti
cs:
The Counci
lof Logi
sti
cs Management (
CLM) (
1998)
,gi
ves t
he most r
ecent
def
ini
ti
on ofl
ogi
sti
csas“
Logi
sti
cs i
sthepr
ocessofpl
anni
ng,i
mpl
ement
ing and
cont
rol
l
ingt
heef
fi
cient
,ef
fect
ivef
low andst
orageofgoods,ser
vices,andr
elat
ed
i
nfor
mat
ionf
rom poi
ntofor
igi
ntopoi
ntofconsumpt
ionf
ort
hepur
poseofconf
ormi
ng
t
oconsumerr
equi
rement
s.
“
Logi
sti
csi
stheposi
ti
oni
ngofr
esour
ceatt
her
ightt
ime,
int
her
ightpl
ace,
att
her
ight
cost
,the r
ightquant
it
y and att
he r
ightqual
i
ty”(
Char
ter
ed I
nst
it
ute ofLogi
sti
cs
andTr
anspor
t,2005)
.

6|Page
“
Logi
sti
cs i
sthe t
ime-
rel
ated posi
ti
oni
ng ofr
esour
ce”(
The Char
ter
ed I
nst
it
ute of
Logi
sti
csandTr
anspor
t,2005)
.
The t
erm l
ogi
sti
cs i
n a const
ruct
ion i
ndust
ry can be def
ined as get
ti
ng
const
ruct
ionmat
eri
als;
equi
pment
’sandl
abort
osi
tebef
oret
heyar
erequi
red.Logi
sti
cs
f
unct
ionsi
naconst
ruct
ionf
ir
m canbedi
vi
dedi
ntosuppl
ylogi
sti
csandsi
tel
ogi
sti
cs.
Suppl
ylogi
sti
csar
erel
atedt
oact
ivi
ti
est
hatar
ecy
cli
cint
hepr
oduct
ionpr
ocess.These
act
ivi
ti
es ar
e basi
cal
l
y:suppl
yresour
ces (
mat
eri
als,equi
pmentand manpower
)
speci
fi
cat
ion,suppl
ypl
anni
ng,acqui
sit
ionofr
esour
ces,t
ranspor
ttosi
teanddel
i
ver
y,
andst
oragecont
rol
.Si
tel
ogi
sti
csar
erel
atedt
o phy
sicalf
low pl
anni
ng,or
gani
zi
ng,
di
rect
ing andcont
rol
l
ing on-
sit
e. Thi
smeans,managementofhandl
i
ngsy
stems,
saf
ety equi
pment
,si
tel
ayout
,def
ini
ti
on ofact
ivi
ty sequence and r
esol
uti
on of
i
nter
fer
enceamong pr
oduct
ion t
eamsact
ivi
ti
eson-
sit
e(Si
l
va and Car
doso,1999)
.
Const
ruct
ion pr
oject si
tel
ogi
sti
cs i
s an i
mpor
tant par
t of l
ogi
sti
cs.Logi
sti
cs
managementr
equi
resaccur
atedel
i
ver
ydat
emat
eri
alpl
anst
osui
ttheact
ualsi
tepl
an
andst
oragear
rangement
s.Ot
her
wise,i
twi
l
lleadt
otheconst
ruct
ionschedul
edel
ays
andi
nter
rupt
ions,orr
esul
tedi
nthest
orage,handl
i
ngand t
ranspor
tat
ion pr
ocess
wast
e ofr
esour
ces (
Dui
yong,Shi
dong and Mi
ngshan,2014)
.Themul
ti
disci
pli
nar
y
pr
ocesses t
hatcompr
ise const
ruct
ion l
ogi
sti
cs i
ncl
ude mat
eri
alsuppl
y,st
orage,
pr
ocessi
ng and handl
i
ng,manpowersuppl
y;schedul
e Cont
rol
,Si
tei
nfr
ast
ruct
ure
and equi
pmentl
ocat
ion,si
temat
eri
alf
low managementonaconst
ruct
ionsi
teand
management of i
nfor
mat
ion r
elat
ed t
o al
lphy
sicaland ser
vices f
lows.Good
const
ruct
ionl
ogi
sti
csi
sal
laboutopt
imi
zi
ngt
hosepr
ocessest
oenhance ef
fi
cient
del
i
ver
y, mov
ement and i
nst
all
ati
on of mat
eri
als and component
s on t
he
const
ruct
ionsi
te.
Logi
sti
cs managementcanbedef
ined aspar
tofsuppl
y chai
nmanagement t
hat
pl
ans,i
mpl
ement
s,and cont
rol
sthe ef
fi
cient
,ef
fect
ivef
orwar
d and r
ever
ses f
low
and st
orage of goods,ser
vices,andr
elat
ed i
nfor
mat
ion bet
ween t
he poi
ntof
or
igi
n and t
he poi
ntofconsumpt
ion i
n or
dert
o meetcust
omer
s""r
equi
rement
s
(
CSCMP,2013)
.Accor
ding t
his def
ini
ti
on,l
ogi
sti
cs managementi
s ani
ntegr
ati
ng
f
unct
ion,whi
chcoor
dinat
esandopt
imi
zesal
llogi
sti
csact
ivi
ti
esf
orpr
operut
il
izat
ion
ofr
esour
cesandsat
isf
yingt
heenduser
.

7|Page
Logi
sti
csi
sof
tendef
inedasmanagi
ngt
hesuppl
ychai
ns,t
hel
att
erbei
nganet
wor
kof
or
gani
zat
ionsl
i
nked by mat
eri
aland i
nfor
mat
ion f
lows bounded wi
th a pr
oduct
(
proj
ect
)li
fe cy
cle (f
rom t
hepr
ocur
ementofr
aw mat
eri
alst
hrough pr
ocessi
ng
and handl
i
ng t
he pr
oduct
s and t
he f
inalpr
oduct
,di
str
ibut
ionandsal
est
otheend-
userandf
inal
l
y,t
owast
eut
il
izat
ion)
.Al
lthepr
ocessesandr
elat
ionsconcer
ningt
he
abov
efl
owsf
orm al
ogi
sti
csy
stem.Acompany
,bei
ngamemberofal
argersuppl
y
chai
nofsuppl
i
ersandcust
omer
s,hasi
tsownsy
stem ofi
nter
nall
ogi
sti
csal
soi
nthe
f
orm of suppl
y Chai
ns (
Anna Sobot
ka,2005)
. (
Abdul
mohsenAl
mohsen and
JanakaRuwanpur
a,2011)showst
hatconst
ruct
ion l
ogi
sti
cscan bedef
ined as“
the
managementoft
hef
low ofmat
eri
als,t
ool
s,andequi
pment(
and anyr
elat
edobj
ect
)
f
rom t
he poi
ntofdi
schar
ge t
othe poi
ntofuse ori
nst
all
ati
on (
The Eur
opean
Const
ruct
ion 1994)
.Br
ingi
ng t
oget
herand coor
dinat
ing t
he managementoft
hese
t
hree v
italcomponent
s bet
ween t
hepr
oject
’s pr
inci
palpar
ti
es woul
dincr
ease
pr
oduct
ivi
tysubst
ant
ial
l
y.Onaconst
ruct
ionsi
te,t
hesecomponent
smustbepr
oper
ly
managedi
nor
dert
oensur
eapr
oject
’ssuccess.I
nef
fect
ive management
,on t
he
ot
herhand,wi
l
lresul
tin conf
li
cts bet
ween t
hese aspect
s.Theseconf
li
ctswi
l
l
ul
ti
mat
elycausepr
ojectdel
ays,
andcostov
err
uns.Becauset
hecostofmat
eri
alsand
equi
pmentr
epr
esent
sal
arge pr
opor
ti
on oft
het
otalpr
oject budget
,iti
svi
talt
o
managet
hesecost
sef
fect
ivel
y.Sev
eralst
udi
esshow t
hatt
heset
wo component
s
consume bet
ween 60 and 70% ofapr
oject
’st
otalbudget
.Managi
ng t
he f
low of
mat
eri
als,assur
ing i
ts qual
i
ty,checki
ng t
he quant
it
y,al
l
ocat
ingt
hest
oragear
eas,
coor
dinat
ingt
heov
eral
lpr
ocess,
tri
gger
ingt
heor
der
s,andupdat
ingt
hepar
ti
cipant
sar
e
maj
or obst
acl
es i
n const
ruct
ion l
ogi
sti
cs management (
Agapi
ou et al
.1998)
.
Const
ruct
ionpr
ojectl
ogi
sti
csi
samul
ti
disci
pli
nar
ypr
ocesswhi
chi
ncl
udesphy
sical
di
str
ibut
ionofmat
eri
als and equi
pment
’s,pur
chase,t
ranspor
tat
ions,war
ehousi
ng,
l
oadi
ngandunl
oadi
ngandst
ockpi
l
ingorst
orage,al
l
ocat
ingi
nfor
mat
ionpr
ocessi
ng
et
c.(
Kagi
ogl
ou etal
.,1999)
. And al
soAccor
dingt
oChr
ist
opher
(1999)const
ruct
ion
l
ogi
sti
csact
ivi
ti
esst
artwi
thpr
operpl
anni
ng,or
gani
zi
ng,commandi
ngorcont
rol
l
ing
mat
eri
alsatr
ightt
ime,r
ightpl
ace,l
owcostandhi
ghqual
i
tyguar
ant
eedand t
hen t
he
pur
chased mat
eri
alshoul
d appr
opr
iat
elyt
ranspor
ted,st
ored and di
str
ibut
ed f
or
si
teconst
ruct
ionwor
k.

8|Page
2.
1.4Basi
csofl
ogi
sti
csmanagementwi
thi
nConst
ruct
ionpr
oject
s

Or
gani
zi
ngandadmi
nist
eri
ngaconst
ruct
ionsi
tesot
hatt
her
ightr
esour
cesgett
othe
r
ightpl
acei
nat
imel
yfashi
ondemandsst
rongl
eader
shi
pandar
igor
ouspr
ocess.Good
const
ruct
ionl
ogi
sti
csonconst
ruct
ionsi
tessav
est
imeandconst
ruct
ioncost
s.Topl
an
const
ruct
ionl
ogi
sti
cs,numer
ousi
nter
fer
encesbet
weenconf
igur
ati
onofconst
ruct
ion
si
teandconst
ruct
ionwor
khav
etobeconsi
der
ed.I
npar
ti
cul
ari
nout
fi
tt
ingpr
ocesses,
t
hei
r count
less possi
ble wor
k sequences and many i
nvol
vedcompani
esgov
ern
pr
oduct
ionl
ogi
sti
cs.(
Voi
gtmannandBar
gst
ädt
,2010)
.Repor
tsandr
evi
ewsont
heUK
const
ruct
ioni
ndust
ryhav
ehi
ghl
i
ght
edt
hei
nef
fi
cienci
esandwast
eoft
hei
ndust
rydue
t
opoorl
ogi
sti
cal
per
for
mance.The“
Impr
ovi
ngConst
ruct
ionLogi
sti
cs”r
epor
tpubl
i
shed
by t
he St
rat
egi
c For
um f
orConst
ruct
ion Logi
sti
cs Gr
oup (
2005)r
ecogni
zes t
he
f
oll
owi
ngf
act
orspr
event
ingt
hei
ndust
ryf
rom pr
oper
lyaddr
essi
ngl
ogi
sti
cs
-
Thel
ackofi
ncent
ivet
ochange,
ast
her
eisnor
eal
“pr
obl
em owner
”
-
Const
ruct
ionpr
oject
sseenasone-
offandasar
esul
tdi
ff
icul
ttoopt
imi
zel
ogi
sti
csf
or
l
ongt
ermbenef
it
-
Thef
ragment
ednat
ureofconst
ruct
ioni
ndust
ryandt
hel
ackofdi
rectempl
oyment
-
The l
ack of cost t
ranspar
ency i
nthe const
ruct
ion pr
ocess t
hat hi
nder
sthe
i
dent
if
icat
ionofpot
ent
ial
sav
ingsf
rom i
mpr
ovedl
ogi
sti
cs
-I
nadequat
eadv
ancedpl
anni
ngofpr
oject
sandshor
tleadt
imes
-
Inadequat
einf
ormat
ionf
low
-
Lackoft
rust
,conf
idenceandunder
standi
ngoft
heconst
rai
ntsoft
hesuppl
ychai
n
-
Cli
ent
s bel
i
eve t
hat pr
oject cost
s al
ready i
ncl
ude f
or appr
opr
iat
e l
ogi
sti
cs
r
esour
cest
obeCommi
tt
edt
opr
oject
s.
Thei
mpr
operconsi
der
ati
onofl
ogi
sti
csi
na const
ruct
ion pr
ojectmayr
esul
ttoahi
gh
pr
opor
ti
onoft
rucksmov
ingar
oundt
her
oadnet
wor
kei
therempt
yorwi
thpar
t-
loadsof
mat
eri
als,t
raf
fi
ccongest
ionduet
otr
uckst
hatar
ri
veonsi
teandhav
etowai
ttogai
n
accessorbeunl
oadedandski
l
ledcr
aft
sment
hatof
tenuset
hei
rski
l
lsf
orl
esst
han50%
oft
hei
rti
meonsi
teduet
othei
rinv
olv
ementwi
thNon-
ski
l
ledt
askssuchasunl
oadi
ng
at
ruckormov
ingpr
oduct
sar
oundsi
te.
(Di
mit
ri
sPapapr
okopi
ou,
2010)

9|Page
2.
1.5.Char
act
eri
sti
cst
hatdi
sti
ngui
shConst
ruct
ionl
ogi
sti
csf
rom ot
her
t
ypesofl
ogi
sti
cs

Logi
sti
cs i
n t
he const
ruct
ion i
ndust
ry has some not
abl
e char
act
eri
sti
cs t
hat
di
sti
ngui
shi
tfr
om t
hegener
all
ogi
sti
csandt
hesear
e
1.Di
sposabl
e,j
ustexi
stf
oraconst
ruct
ionpr
oject
;
2.Uncer
tai
nty
;
3.Suppl
ychai
nendwhent
hepr
ojectcompl
eti
on,
4.
Highr
isk,
theoccur
renceofr
iskal
way
sleadst
oser
iousf
inanci
all
oss;
5.Sy
stem r
eli
abi
l
ityi
scompl
ex,
andcont
rol
l
abi
l
ityi
sweak.
I
nconst
ruct
iont
ermsl
ogi
sti
csi
sal
laboutensur
ingt
hatdesi
gn,pr
ocur
ementand
const
ruct
ionpr
act
ices ar
e opt
imi
zed t
o enhance ef
fi
cientdel
i
ver
y,mov
ementand
i
nst
all
ati
on ofmat
eri
als andcomponent
s on t
he const
ruct
ion si
te.Thi
srequi
res
mul
ti
disci
pli
nar
ypr
ocessest
hatseekr
ightcost
,ri
ghtt
imeandr
ightqual
i
ty.
Organi
zi
ng
andadmi
nist
eri
ngaconst
ruct
ionsi
tesot
hatt
her
ightr
esour
cesgett
other
ightpl
acei
n
t
imel
yfashi
ondemandsst
rongl
eader
shi
pandar
igor
ouspr
ocess.Goodconst
ruct
ion
l
ogi
sti
csonconst
ruct
ionsi
tessav
est
imeandconst
ruct
ioncost
s.Topl
anconst
ruct
ion
l
ogi
sti
cs,numer
ous i
nter
fer
ences bet
ween conf
igur
ati
on ofconst
ruct
ion si
te and
const
ruct
ion wor
khav
eto beI
n par
ti
cul
ari
n out
fi
tt
ing pr
ocesses,t
hei
rcount
less
possi
blewor
ksequencesandmanyi
nvol
vedcompani
esgov
ernpr
oduct
ionl
ogi
sti
cs.

2.
1.6.Const
ruct
ionMat
eri
alsManagementonConst
ruct
ionPr
oject
s

Mat
eri
als management
in const
ruct
ionpr
oject
sis akey f
unct
ion t
hatsi
gni
fi
cant
ly
cont
ri
but
est
othesuccessofapr
oject
.Themanagementofmat
eri
alsi
nconst
ruct
ion
pr
oject
s i
smade chal
l
engi
ngby
mat
eri
als shor
tages, del
ays i
n suppl
y, pr
ice
f
luct
uat
ions, damage and wast
age, and l
ack of st
orage space.Mat
eri
als
managementi
sav
italf
unct
ionf
ori
mpr
ovi
ngpr
oduct
ivi
tyi
nconst
ruct
ionpr
oject
s.The
managementofmat
eri
als shoul
d consi
deratal
lthe phases oft
he const
ruct
ion
pr
ocess andt
hroughoutt
heconst
ruct
ionandpr
oduct
ionper
iods.Thi
sisbecausepoor
mat
eri
alsmanagementcan of
ten af
fectt
heov
eral
lconst
ruct
ion t
ime,qual
i
tyand
budget
.The i
mpor
tance f
orpl
anni
ng andcont
rol
l
ing ofmat
eri
alst
o ensur
ethat

10|Page
t
he r
ight qual
i
ty and quant
it
y of mat
eri
als and i
nst
all
edequi
pment ar
e
appr
opr
iat
ely speci
fi
ed i
nat
imel
y manner
,obt
ained ata r
easonabl
e cost
,and
ar
eav
ail
abl
ewhenneeded.Manyconst
ruct
ionpr
oject
sappl
ymanualmet
hods,notonl
y
f
ort
het
racki
ngof
mat
eri
als,butal
sof
ormat
eri
alsmanagementasawhol
eandt
his
i
nvol
ves paper
-based t
echni
ques and i
s pr
obl
emat
ic wi
th many human er
ror
s
(
Nar
imahKasi
m,2013)
.
Tabl
e2.
1Sour
cesandcausesofconst
ruct
ionsi
temat
eri
almanagementpr
obl
ems

Fact
or
Desi
gn Changesmadet
othedesi
gnwhi
l
econst
ruct
ioni
sinpr
ogr
ess
Lackofat
tent
ionpai
dtost
andar
dsi
zesav
ail
abl
eont
hemar
ket
Desi
gner
’sunf
ami
l
iar
it
ywi
thal
ter
nat
ivepr
oduct
s
Compl
exi
tyofdet
ail
i
ngi
nthedr
awi
ngs
I
ncompl
etecont
ractdocument
satcommencementofpr
oject
Sel
ect
ionofl
owqual
i
typr
oduct
s

Oper
ati
onal Er
ror
sbyt
radesper
sonsorl
abor
ers
Damaget
owor
kdonecausedbysubsequentt
rades
Useofi
ncor
rectmat
eri
al,
thusr
equi
ri
ngr
epl
acement
s
Requi
redquant
it
yuncl
earduet
oimpr
operpl
anni
ng
Del
aysi
npassi
ngofi
nfor
mat
iont
othecont
ract
oront
ypesandsi
zesof
Pr
oductt
obeused

Mat
eri
al Er
ror
sbyt
radesper
sonsorl
abor
ers
Handl
i
ng Damaget
owor
kdonecausedbysubsequentt
rades
Useofi
ncor
rectmat
eri
al,
thusr
equi
ri
ngr
epl
acement
s
Requi
redquant
it
yuncl
earduet
oimpr
operpl
anni
ng
Del
ayi
npassi
ngofi
nfor
mat
iont
othecont
ract
oront
ypeandsi
zeonsi
ze
ofpr
oductt
obeused
Managi
ng and Mi
nimi
zi
ng Wast
age of mat
eri
als on const
ruct
ion pr
oject
s
Const
ruct
ion Mat
eri
alwast
age has been r
ecogni
zed as a maj
orpr
obl
em i
nthe

11|Page
const
ruct
ion i
ndust
ryt
hathas i
mpor
tant
impl
i
cat
ionsbot
hfort
heef
fi
ciencyi
ndust
ry
and f
or t
he env
ironment
al i
mpact of const
ruct
ion pr
oject
s.Mor
eov
er, wast
e
measur
ementpl
aysani
mpor
tantr
olei
nthemanagementofpr
oduct
ionsy
stemssi
nce
i
tis an ef
fect
ive way t
o assess t
hei
rper
for
mance,al
l
owi
ng ar
eas ofpot
ent
ial
i
mpr
ovementt
obepoi
ntedout(
Car
losTor
resFor
mosa,
2002)
.

No. Met
hodsofmat
eri
almanagement
1. Pur
chasi
ngr
awmat
eri
alst
hatar
e
j
ust
suf
fi
cient
Goodcoor
dinat
ionbet
weenst
oreand
const
ruct
ionper
sonnel
toav
oidov
er
or
der
ing

3. Adopt
ionofpr
opersi
temanagement
t
echni
ques
4. Tr
aini
ngofconst
ruct
ionper
sonnel
5. Accur
ateandgoodspeci
fi
cat
ionsof
mat
eri
alst
oav
oidwr
ongor
der
ing
6. Checki
ngmat
eri
alssuppl
i
edorr
ight
quant
it
iesandv
olumes
7. Empl
oymentofski
l
ledl
abor
ers
8. Mi
nimi
zi
ngdesi
gnchanges
9. Changeofat
ti
tudeofwor
ker
stowar
ds
t
hehandl
i
ngofmat
eri
als
10. Accur
atemeasur
ement
sofmat
eri
als
dur
ingbat
chi
ng
11. Accesst
olat
esti
nfor
mat
ionabout
t
ypesofmat
eri
alsont
hemar
ket
12. Vi
gil
anceofsuper
visor
s
13. Car
eful
handl
i
ngoft
ool
sand
equi
pmentonsi
te

12|Page
14. Goodconst
ruct
ionmanagement
pr
act
ice
15. Adher
encet
ost
andar
dizat
ion

2.
1.7.Chal
lengesoft
heConst
ruct
ionLogi
sti
cs

Ther
ear
esubst
ant
ialdi
ff
icul
ti
esi
nappl
yi
ngl
ogi
sti
csmanagementi
ntheconst
ruct
ion
i
ndust
ry(
Saad,
etal
.,2002)
.Fact
orssuchasshor
t-
ter
mism,l
ackoft
rustandadv
ersar
ial
r
elat
ionshi
ps,
thet
ransi
entnat
ureofconst
ruct
ionpr
oject
sandt
heconsi
der
abl
enumber
ofi
nfr
equentcl
i
ent
s wer
e hi
ghl
i
ght
ed ast
he mai
n pr
obl
ems associ
ated wi
tht
he
i
mpl
ement
ati
onofl
ogi
sti
csmanagementi
nconst
ruct
ion.Thi
ssect
ionwi
l
laddr
esst
he
mai
n chal
l
enges associ
ated wi
th adopt
ing l
ogi
sti
cs management i
n t
he
Const
ruct
ioni
ndust
ry.Cust
omerf
ocus,l
ogi
sti
csmanagementmaywel
lhel
pimpr
ove
t
heconst
ruct
ioni
ndust
rywi
thi
tspoorr
elat
ionshi
ps,f
ragment
edpr
ocessesandl
ackof
i
nter
nalandext
ernalcust
omer
focus.Howev
er,t
her
err
emai
nanumberofcr
it
ical
i
ssueswi
thi
ntheconst
ruct
ioni
ndust
ryt
hatneedt
obeconsi
der
edandr
ect
if
ied.A l
ong
l
i
st of pr
obl
ems coul
dbe i
temi
zed,i
ncl
udi
ngl
ack of t
rustandcommi
tment
,co-
or
dinat
ionpr
obl
emsandt
rai
ningpr
obl
ems,al
lofwhi
char
eal
readywel
ldocument
edby
r
epor
ts(
Lat
ham,1994;Egan,1998)
.Consequent
ly,scopef
ori
mpl
ement
ingl
ogi
sti
cs
management
wit
hinconst
ruct
ioncoul
dbel
i
mit
ed(
Saad,etal
.,2003)
.Much r
esear
ch
wor
k and r
ealt
estcases anal
yses hav
e assessedt
hatconst
ruct
ioni
sinef
fect
ive
andmanypr
obl
emscanbeobser
ved.Anal
ysi
soft
hesepr
obl
emshasshownt
hata
maj
orpar
toft
hem ar
esuppl
ychai
npr
obl
ems,or
igi
nat
ingatt
hei
nter
facesofdi
ff
erent
par
ti
esorf
unct
ions,amongwhi
cht
hef
oll
owi
ngar
efew oft
hem (
Vri
j
hoefR.
,etal
.,
2001)
:Cl
i
ent
/desi
gni
nter
face:di
ff
icul
ti
esi
nfi
ndi
ngoutcl
i
ent
’s wi
shes,changes of
cl
i
ent
’s wi
shes,
l
ong pr
ocedur
es t
o di
scuss changes,
Desi
gn/
engi
neer
ing i
nter
face:
i
ncor
rectdocument
s,desi
gnchanges,ext
endedwai
tfor
Archi
tect
’sappr
ovalordesi
gn
changes,Engi
neer
ing/
pur
chasi
ng&pr
epar
ati
oni
nter
face:i
naccur
atedat
a,engi
neer
ing
dr
awi
ngsnot
fi
tt
ingt
heuse,
Pur
chasi
ng&pr
epar
ati
on/
suppl
i
ersi
nter
faceandpur
chase
&pr
epar
ati
on/
subcont
ract
orsI
nter
face:i
naccur
ate dat
a,i
nfor
mat
ion needs notmet
,

13|Page
adv
ersar
ialbar
gai
ning and ot
her changes,
Suppl
i
ers/
subcont
ract
orsi
nter
face and
suppl
i
ers/
sit
eint
erf
ace: del
i
ver
iesnoti
nconf
ormancewi
th pl
anni
ng, wr
ong and
def
ect
ive del
i
ver
ies, l
ong st
orage per
iod, awkwar
d packi
ng, l
arge
shi
pment
s,Subcont
ract
ors/
sit
e i
nter
face: subcont
ract
ed wor
k not del
i
ver
ed
accor
dingt
omai
ndesi
gn,
cont
ractandpl
anni
ng,
Sit
e/compl
eti
onofbui
l
dingi
nter
face:
pr
obl
emat
iccompl
eti
onduet
oqual
i
typr
obl
ems,Compl
eti
onofbui
l
ding/
occupat
ion
i
nter
face:unr
esol
vedqual
i
typr
obl
ems,
del
ayedoccupat
ionduet
olat
ecompl
eti
on,
I
tcan
benot
icedf
rom t
hisl
i
stt
hatcommuni
cat
ionpr
obl
ems(
eit
herdescr
ibedi
nter
msof
dat
a,or
mor
egener
all
yint
ermsofi
nfor
mat
ionhandl
eddur
ingt
heexchanges)f
orm an
i
mpor
tantpar
toft
hepr
obl
emsf
acedi
nconst
ruct
ionsuppl
ychai
ns.

2.
1.8.I
mpact
sofpoorconst
ruct
ionl
ogi
sti
csmanagement
s

Thest
udymadebyFadi
ya,(
2012)
,UsmanandMuhammad(
2015)showedt
hatt
he
consequencesof
cur
renti
nef
fi
cientl
ogi
sti
cspr
act
icei
ntheconst
ruct
ioni
ndust
ryr
esul
ts
t
hef
oll
owi
ngi
mpact
s.
1.Mat
eri
alsLoss:i
mpr
opermanagementofl
ogi
sti
csi
nconst
ruct
ionpr
oject
sleads
l
argeamount
ofmat
eri
alt
obel
ostordamaged.Onsi
test
oragesy
stem andmechani
sm,
wr
ongchoi
ceof
sel
ect
ing t
ranspor
ti
ng mechani
sms, hav
ing excess amount of
mat
eri
alandet
c.Hasbeenconsi
der
edast
her
esul
tofpoorl
ogi
sti
csmanagement
.
2.
Del
ayi
nconst
ruct
ionpr
ojectdel
i
ver
y:t
hedel
ayofconst
ruct
ionmat
eri
aldel
i
ver
y
andmat
eri
alav
ail
abi
l
ity on const
ruct
ion si
te makes const
ruct
ion pr
ocess t
o be
i
nter
rupt
ed. Thi
sint
err
upt
ionofconst
ruct
ionmakest
hewhol
econst
ruct
ionpr
oject
del
i
veryt
imet
odel
ay.
3.
Oper
ati
ves/
plant col
l
isi
on:poor l
ogi
sti
cs sy
stems make t
he const
ruct
ion si
te
di
sor
gani
zeandl
eadst
oonsi
teacci
dent
ssuchconst
ruct
ionequi
pment
/pl
ant
/col
l
isi
on.
Thi
smakest
heConst
ruct
ionpr
ocesst
obedi
srupt
edandbehi
ndt
heschedul
e.
4.
Inaccur
ate dat
a:manualdocument
ati
on sy
stem and mechani
sm makes t
he
di
ff
icul
ty of
accur
atedat
afi
l
li
ngandconv
eywhenneeded.I
naccur
acyofi
nfor
mat
ion
r
egar
ding i
nvent
ory
,st
orage l
ocat
ion and i
naccur
ater
epor
ts makes const
ruct
ion
pr
ocesst
oodi
ff
icul
t.
5.
Excessi
ve cost of const
ruct
ion: I
nef
fi
cient l
ogi
sti
cs makes t
he cost of

14|Page
const
ruct
ion t
o beexcessi
vel
yhi
ghbecauseexcesssuppl
yofmat
eri
als,t
hef
tand
mat
eri
alsdamagear
enon-
val
ue-
addedcost
s.
6.
Poori
mageoft
heconst
ruct
ion i
ndust
ry:i
flogi
sti
csmanagementnotgood t
he
i
mageof
const
ruct
ionsect
orsar
enotgood.Becausepoorl
ogi
sti
csr
esul
tsi
nlar
ge
quant
it
y of onsi
tewast
age,const
ruct
ion v
ehi
cles ar
e not pr
oper
ly managed i
t
i
ncr
easeur
bant
raf
fi
ccongest
iont
ruckacci
dentandenv
ironment
alpol
l
uti
on.Thi
sal
l
cont
ri
but
esbadi
mpr
essi
onaboutt
heconst
ruct
ioni
ndust
ryi
nsoci
ety
.
7.
Poor qual
i
ty const
ruct
ion: i
fthe l
ogi
sti
cs management i
s not good i
n
const
ruct
ion si
tesmai
ntai
ning qual
i
tyi
s di
ff
icul
t.Al
l
ocat
ingl
ess ski
l
led l
abor
ers"
,
notpr
oper
lyhandl
i
ngmat
eri
al,l
esscoor
dinat
ionandcommuni
cat
ionar
ethef
act
ors
t
hatcont
ri
but
eto poorqual
i
tyconst
ruct
ioni
nconst
ruct
ionpr
oject
s.I
fthequal
i
tyof
mat
eri
alsi
snotpr
oper
lymai
ntai
nedandt
rai
nedwor
ker
sar
enotassi
gnedappr
opr
iat
ely
i
twi
l
linev
itabl
ymaket
hepr
oduct
ionofqual
i
tyconst
ruct
ionmor
edi
ff
icul
tandl
eadst
he
pr
ojectf
orpoorqual
i
tyout
come.
8.Pr
omot
esofcor
rupt
ion&r
obber
y:l
uckofnon-
appr
opr
iat
est
oragepl
ace,
hir
ingofnot
wel
l
thatcont
ri
but
est
ocor
rupt
ionandr
obber
yinconst
ruct
ionpr
oject
s.
9.
Fragment
ati
on ofact
ivi
ti
es wi
thi
nthe const
ruct
ion pr
ocess:Ther
e ar
e sev
eral
const
ruct
iont
eams who ar
einv
olv
ed i
n one const
ruct
ion pr
oject
s.Suchasdesi
gn
t
eam andconst
ruct
iont
eam andsuppl
i
ers"t
eams.Absenceofgoodcommuni
cat
ion
andcoor
dinat
ionsy
stemsbecauseofpoorl
ogi
sti
cs managementi
n bet
ween t
hose
par
ti
esl
eadst
heconst
ruct
ionpr
ocesst
obef
ragment
edandunt
idy
.
10.Tr
aff
iccongest
ionduet
otr
ucks:now day
sbecauseofexpansi
onofconst
ruct
ion
pr
oject
sinur
banar
eas(
dev
elopi
ngcount
ry)t
her
ear
elar
genumberofconst
ruct
ion
t
rucksmov
esonur
banr
oadnet
wor
ks.Thoset
rucksar
emov
ing ar
oundt
heci
tyf
or
del
i
ver
ing t
o const
ruct
ion or
mov
ing f
rom si
te.The mov
ementt
he numbert
raf
fi
c
v
olumes wi
l
lbe i
ncr
eased and t
raf
fi
ccongest
ioncoul
dbecr
eat
ed.Ev
enonsome
l
argeconst
ruct
ionpr
ojectsi
tes;t
rucksmakesqueuef
or l
oadi
ng or unl
oadi
ng of
mat
eri
alswhenar
ri
vedont
hesi
tebecauseofpoorl
ogi
sti
csmanagement
.
11.Added r
iskst
o heal
th and saf
ety
:impr
opermat
eri
alst
ori
ng,handl
i
ng on si
te
i
nev
itabl
ybr
ingaddi
ti
onalpot
ent
ialhazar
ds. Manualmat
eri
alhandl
i
ng l
oadi
ng or
unl
oadi
ng(
eit
herbecausepr
oducti
sint
hewr
ongpar
toft
hesi
teorbecauset
her
ight

15|Page
equi
pmenti
snotav
ail
abl
e)addst
otheheal
thr
iskst
othoseonsi
te.

2.
1.9Met
hodsandt
echni
quest
oImpr
ovi
ngpoorconst
ruct
ionl
ogi
sti
cs
management
s

Tomanaget
hemat
eri
aldel
i
ver
iest
otheseur
banconst
ruct
ionsi
tes,t
her
eisaneedt
o
i
mpr
ovehowconst
ruct
ionl
ogi
sti
csi
scont
rol
l
ed,coor
dinat
edandexecut
ed.Agapi
ou,et
al
.(1998)hi
ghl
i
ghtt
hatt
hef
ocus ofany const
ruct
ion l
ogi
sti
cs set
up mustbe t
o
i
mpr
ovecoor
dinat
ionand communi
cat
ionbet
weenpr
ojectst
akehol
der
s,andt
hatt
he
sol
uti
onmustbedesi
gnedf
rom ahol
i
sti
cvi
ewt
ocr
eat
ethebestpossi
blemat
eri
alf
lows
t
oandf
rom si
te. Aconst
ruct
ion l
ogi
sti
cs t
echnol
ogycanr
angef
rom j
ust
a smal
l
change i
n wor
king pr
act
ices (
Gaj
endr
an, 2013; Tanskanen, et al
., 2015)
,
i
mpl
ement
ingpl
anni
ng sy
stems and I
CT t
ool
s,t
o l
arge-
scal
e t
ermi
nalnet
wor
ks
st
ruct
ures or j
ust i
n-t
ime sol
uti
ons(
Transpor
tfor London,2013)
.Lat
ely
,the
const
ruct
ioni
ndust
ryhasst
art
edt
olookathow ur
bangoodst
ranspor
tingener
ali
s
managed.Onepopul
arsuggest
ionf
orr
educi
ngt
hei
mpactofur
bangoodst
ranspor
ts
hasbeent
oempl
oyur
banconsol
i
dat
ioncent
ers(
UCC"
s)(
All
en,etal
.,2014;Bj
örkl
und,
et
al.
,2017)
. Byconsol
i
dat
inggoodsf
rom mul
ti
plesuppl
i
ersi
ntooneshi
pment
,the
amount
ofgoodsmov
ement
swi
thi
nci
ti
escanber
educed.Thei
dea ofconsol
i
dat
ing
goodst
oreduce t
he numberof
goodsmov
ement
shasnow r
ecei
vedat
tent
ioni
nthe
const
ruct
ioni
ndust
ryaswel
l
,pav
ingt
hewayf
orconst
ruct
ionl
ogi
sti
cscent
er"
s(CLC"
s)
(Tr
anspor
tforLondon,2013)
.Ther
ear
evar
iousl
ogi
sti
cst
echnol
ogi
esusedbyv
ari
ous
const
ruct
ionpr
oject
sint
hedi
ff
erentpar
toft
hewor
ld.Thesel
ogi
sti
cst
echni
quesar
e
usedt
osi
mpl
i
fyt
hel
ogi
sti
cspr
ocessandmanagement
s.Accor
dingt
oAnt
honyetal
.
(
2007)andMat
ouzko(
2015)t
hosel
ogi
sti
cst
echnol
ogi
esar
e:
I
.Just
-I
n-Ti
medel
i
ver
y(JI
T)
The JI
T l
ogi
sti
cs wer
e dev
eloped by t
he Japanese aut
omobi
l
e manuf
act
urer
sy
stem Toy
otaasanessent
ial
par
tofTheToy
otaPr
oduct
ionSy
stem.Thebasi
soft
his
sy
stem i
stheabsol
uteel
i
minat
ionof
wast
e(Ber
tel
senandNi
elsen,1997)
.Mor
eov
er,
aut
hor
sst
atedt
hat
;JI
Tdel
i
ver
yisaser
viceofr
egul
ardel
i
ver
y orsuppl
y ofmat
eri
als
t
o t
he const
ruct
ion si
te wi
thout any del
ays. I
tist
hemechani
sm of
cont
inuous
suppl
yofr
ightquant
it
yofmat
eri
alatr
ightqual
i
ty,i
nri
ghtt
imeandatr
ightpl
ace.I
n

16|Page
t
hiscaset
her
eisno assuchonsi
test
oragei
sneeded. Ther
efor
eri
skofmat
eri
al
damageandl
oss,
sit
econgest
ionandsaf
etyi
ssuewi
l
lbemi
nimi
zed.

I
I.Const
ruct
ionConsol
i
dat
ionCent
re(
CCC)
A Const
ruct
ion Consol
i
dat
ion Cent
re,al
so cal
l
ed Bui
l
ding Logi
sti
cs Cent
re,i
s
adi
str
ibut
ionf
aci
l
ity
thr
oughwhi
chmat
eri
aldel
i
ver
iesar
echannel
edt
oconst
ruct
ion
si
tes.I
tist
hewayofst
ori
ngmat
eri
alf
rom suppl
i
ers atsome st
rat
egi
c pl
aces t
hat
wi
l
lbeatappr
opr
iat
edi
stancef
rom al
lconst
ruct
ionpr
oject
ssi
tes.Thenf
rom t
hese
cent
ersmat
eri
alsar
etr
anspor
ted t
o eachconst
ruct
ionpr
oject
ssi
tesJI
Tdel
i
ver
ies
sy
stems.
Accor
dingt
oLundesj
o(2011)consol
i
dat
ioncent
ershasmuchadv
ant
agef
or
const
ruct
ionsi
tes.Suchas:r
educesf
rei
ghtt
raf
fi
cto si
tebyup t
o 70%,i
ncr
eases
pr
oduct
ivi
tyofsi
tel
aborby30mi
nut
esperdayl
eadi
ngt
oa6% pr
oduct
ivi
tygai
nand
r
educes onsi
te wast
e by 7-
15% t
hrough l
ess mat
eri
aldamageandshr
inkage.Asi
t
was st
ated her
e;ef
fi
cientl
ogi
sti
cs managementi
n const
ruct
ion pr
oject
scan be
achi
eved by appl
yi
ng const
ruct
ion consol
i
dat
ion cent
er and t
hrough t
his,si
te
congest
ionr
educt
ion,
incr
easeofpr
oduct
ivi
tyandreduci
ngofmat
eri
alwast
age;
wil
lbe
achi
eved.
I
II
.DemandSmoot
hing
Demandsmoot
hingi
s a wayofl
ooki
ng ont
he pr
ojectact
ivi
ti
esi
ntheent
ir
echai
n
and i
dent
if
yingwhet
hert
heper
for
mancecan be“
smoot
hed”t
o decr
easet
ranspor
t
r
esour
ced,mat
eri
als and l
abor
neededt
ocar
ryoutt
heact
ivi
ty.I
thel
pst
oident
if
y
peaksand gapsi
nthemat
eri
als"needsov
erat
imeper
iod (
Lundesj
o,2011)
.Thi
s
i
ndi
cat
est
hat
,bal
anci
ngofmat
eri
al,wor
kfor
ceav
ail
abi
l
ityandwor
kat
handal
l
owst
o
know f
orhow l
ongmat
eri
alwi
l
lbeenoughwhowi
l
lbeassi
gnedonwhi
chact
ivi
ty
andhel
pknow whenanot
heror
dershoul
dbemade.Accor
dingdemandsmoot
hing
conceptanyr
esour
cesshoul
dbeal
l
ocat
edwhenneededatappr
opr
iat
eti
meandpl
ace.
Resour
cesar
enott
obeexcessorshor
tage.
I
V.On-
sit
eMar
ket
placesWar
ehouse.Thent
hemat
eri
alsdi
str
ibut
edt
o appr
opr
iat
e
pl
acewheni
tisr
equi
redt
hemaj
oradv
ant
agewi
thonsi
temar
ketpl
acei
stheguar
ant
ee
ofav
ail
abl
esuppl
i
esandmat
eri
ali
nther
ightandsaf
epl
ace. And al
so hel
p t
he
cont
ract
ors/
subcont
ract
ors not t
o hav
e t
hei
r own mat
eri
alst
orages on-
sit
e.

17|Page
Ther
efor
e; t
his enhance per
for
mance i
ncr
ease and const
ruct
ion cost
r
educt
ion(
decr
ease t
ranspor
tat
ion cost
,decr
ease chance ofmat
eri
all
oss et
c.)
.
(
Lundesj
o,2011)
.
V.Pr
e-assembl
edandof
fsi
tef
abr
icat
ion
Pr
efabr
icat
ioni
sagoodmet
hodf
orsmoot
hingconst
ruct
ionl
ogi
sti
cs.Becauseofal
l
t
hecomponent
sused f
or bui
l
ding const
ruct
ion i
s pr
oduced i
n f
act
ory and
t
ranspor
ted t
o t
he const
ruct
ion si
te f
orassembl
y.I
tensur
esbet
terqual
i
ty,l
ess
mat
eri
alwast
age,mi
nimi
zesl
aborf
orcecost
,reducesonsi
tecongest
ion and r
educes
const
ruct
ion t
ime,l
oweramountofer
ror
sand decr
easest
ranspor
tcost
(Lundesj
o,
2011)
.
VI
.Inf
ormat
ionandCommuni
cat
ionTechnol
ogy(
ICT)Sy
stemsI
CT Sy
stemsar
e used
t
o keep t
rackand moni
tormat
eri
alst
hrough ent
ir
e suppl
ychai
n pr
ocess(
star
ti
ng
f
rom pr
oduct
ion pl
aceunt
ili
tisusedori
nst
all
edonsi
te)
.Tagsy
stemswasusedt
o
managemat
eri
aldel
i
ver
ieswi
tht
hehel
p ofdi
ff
erentsor
tofi
nfor
mat
iont
echnol
ogy
(
barcode)
.Then Radi
ofr
equencyi
dent
if
icat
ion (
RFI
D)i
s used f
orr
eadi
ng oft
ags
orbar
codeoft
hatmat
eri
alonsi
tef
orchecki
ngt
hemat
eri
al.Thet
agsy
stem,
hav
ing
r
elat
ivel
ylow cost
,al
l
owst
hemoni
tor
ingofmat
eri
alt
othepoi
ntoff
inaluseandcan
of
ferdet
aili
nfor
mat
ionabouthowi
sitgoi
ngonsi
te.I
thel
pst
oknoweasi
l
yhowmuch
mat
eri
alwasusedandhowmuchmat
eri
ali
slef
tint
hest
ore(
Lundesj
o,2011.
)
VI
I.Thi
rdPar
tyLogi
sti
cs
I
tiswayofi
nvol
vi
ngt
het
hir
dper
son,
rat
hert
hansuppl
i
erandconsumeri
nthel
ogi
sti
cs
sy
stem f
ormaki
ngbet
terl
ogi
sti
cssy
stem.Themai
npur
poseofsuchcompani
esi
sto
cr
eat
esaf
e,cl
eanandwor
k-ef
fi
cientwor
kingpl
acebyef
fi
cientandbet
terpl
aned
l
ogi
sti
cs.Ther
efor
e;cont
ract
orsandsubcont
ract
orsdonotneedt
ospendmor
eti
meon
r
ewor
kandmov
ingmat
eri
alwi
thi
nthesi
te.Themostoft
hemat
eri
alt
ranspor
tat
ion i
s
donebyt
hist
hir
d par
tydur
ingev
eni
ngwhen t
hewor
ker
sar
eawayand cr
anesar
e
av
ail
abl
e(t
oreduce wor
kint
err
upt
ion f
orl
oadi
ng and unl
oadi
ngmat
eri
als,t
oreduce
onsi
teandur
bancongest
ionet
c.)
.Ev
erynextwor
kingdaywor
ker
shav
ereadymat
eri
al
i
nri
ght
quant
it
y and on t
he r
ightpl
ace.I
tmakes saf
erand cl
ean const
ruct
ion
env
ironment(
Mat
ouzko,
2015)
.Thi
rd-
par
tyl
ogi
sti
cs(
TPL)can essent
ial
l
ybesai
dto
be t
he out
sour
cing ofa company
’sl
ogi
sti
csf
unct
iont
oanext
ernall
ogi
sti
csser
vice

18|Page
pr
ovi
der
,a “
thi
rd par
ty”
,thatact
sasan i
nter
medi
arybet
weent
wo suppl
y chai
n
compani
es (
Mar
asco,2008)
,atl
eastmanagi
ng and execut
ing t
ranspor
tat
ion and
war
ehousi
ng.
VI
II
.Appl
yi
ngI
ntegr
ated/
Syst
emat
icConst
ruct
ionLogi
sti
cs
A sy
stemat
ic appr
oach t
o const
ruct
ion l
ogi
sti
cs has l
ed t
othe emer
gence ofa
dedi
cat
ed l
ogi
sti
cscont
ract
orwho assumes t
he si
ngl
e poi
ntr
esponsi
bil
i
ty t
o
i
ntegr
ate al
lthe essent
ialsuppor
t ser
vicesassoci
ated wi
th const
ruct
ion pr
oject
(
Sul
l
ivanetal
.,2010)
.Egan(
1998)mat
eri
alacqui
sit
ion.Thecost
var
iabl
esconsi
der
ed
whencal
cul
ati
ngt
heCSf
oroneor
derandal
li
ncomi
ngdel
i
ver
ies.Thei
ncl
udedcost
sar
e
costt
oor
der
,costt
orecei
ve,costt
over
if
ymat
eri
als,costt
otr
ansf
erandcostt
o
aut
hor
izesuppl
i
erpay
ment(
Thunber
g and Per
sson,2014)st
ated t
hatt
oimpr
ove
const
ruct
ionpr
ojectdel
i
very
,const
ruct
ioni
ndust
ryhadt
odev
elopani
ntegr
atedpr
oject
pr
ocess.
indust
ryf
orf
ouri
mpor
tantr
easons I
ntegr
ated and dedi
cat
ed appr
oach can
maxi
mize t
he pr
oduct
ivi
ty and ef
fi
ciency of ski
l
ledwor
kfor
ce.Forexampl
e,i
na
t
radi
ti
onalappr
oach,someski
l
ledwor
ker
smaybedi
ver
tedt
ohel
pouti
nmat
eri
als
del
i
ver
ywhi
l
econst
ruct
ionwor
kwi
l
lbesuspended.I
ntegr
atedanddedi
cat
edappr
oach
t
ologi
sti
cscanmaxi
mizet
hequal
i
tyofser
vicebyenabl
i
nga t
rai
ned l
ogi
sti
cs ser
vice
t
eam t
opr
ovi
deahol
i
sti
csuppor
tser
vicef
ort
heconst
ruct
ionpr
oject
.Tomi
nimi
ze
t
he negat
ive env
ironment
aland soci
ali
mpactt
hatconst
ruct
ion pr
oject
s cr
eat
e
by
enabl
i
ng t
he ef
fi
cientf
low ofmat
eri
als whi
ch can mi
nimi
ze t
he i
ndi
scr
imi
nat
e
packi
ng of
del
i
very v
ehi
cles ar
ound t
he const
ruct
ion si
te and mi
nimi
ze wast
e
gener
ati
on.I
ntegr
ati
ngt
hesuppl
ylogi
sti
csandsi
tel
ogi
sti
cswi
l
lenabl
ethededi
cat
ed
l
ogi
sti
cst
eam onsi
tet
opl
anf
ordel
i
verywel
linadv
ance.Sy
stemat
icconst
ruct
ion
l
ogi
sti
cscanenhancet
heat
tai
nmentoft
hehi
ghestpossi
blest
andar
dsofheal
thand
saf
ety
,forexampl
e,bymi
nimi
zi
ngcol
l
isi
onacci
dent
swhi
chcanr
esul
tfr
om t
heChaot
ic
di
str
ibut
ionofmat
eri
alsonconst
ruct
ionsi
te.

2.
10.Successf
act
orsofaconst
ruct
ionl
ogi
sti
cs

Ef
fect
ivel
ogi
sti
calpl
anni
ng i
simper
ati
vef
orany const
ruct
ion pr
ojectas i
tcan
pr
ovi
de massi
vebenef
it
sinef
fi
ciencyandpr
oduct
ivi
tyt
hatsi
gni
fi
cant
lyr
educest
he
ov
eral
lcostoft
hepr
oject
.Ther
e’snot
hingmor
efr
ust
rat
ingt
hanhav
ingawor
kfor
cenot

19|Page
bei
ngabl
etocont
inuebecauset
heyar
emi
ssi
ngorwai
ti
ngont
hear
ri
valofmat
eri
als.
Const
ruct
ion l
ogi
sti
csshoul
d be desi
gned t
o del
i
ver cl
i
ent
’sneeds as wel
las
sat
isf
ytheper
for
mancer
equi
rement
soft
hecont
ract
or i
nthemostef
fi
cientway
possi
bleandi
tispr
ocesst
hatshoul
dhav
ethef
oll
owi
ngchar
act
eri
sti
cs
1.Rat
ional
i
zedsuppl
ybase: Thenumber
ofsuppl
i
ersshoul
dbemi
nimi
zedt
oensur
e
ef
fi
cient
del
i
ver
y. Reasonabl
yfewsuppl
i
ers can be bet
termanaged and l
ogi
sti
cal
const
rai
ntswi
l
lber
educed.
2.I
nvol
vementofst
rat
egi
c suppl
i
ers att
he desi
gn st
age:Ther
eis need f
orf
ull
under
standi
ng of
the i
mpl
i
cat
ions of desi
gn,component
s and mat
eri
alchoi
ces.
I
nvol
vi
ng st
rat
egi
c suppl
i
ersear
ly enough wi
l
l enhance t
he compl
i
ance of
pr
ocur
ementandl
ogi
sti
cswi
thdesi
gnspeci
fi
cat
ions.
3.Sel
ect
ionofsuppl
ychai
nmember
sbasednotonl
yont
hei
rlow pr
icebutal
sot
hei
r
wi
l
li
ngnesst
ocont
ri
but
etot
eam ef
for
t.Ef
fect
ive, f
ast and accur
ate i
nter
-t
eam
communi
cat
ion and f
low ofi
nfor
mat
ion.Thi
swi
l
lpr
omot
eteam spi
ri
tandsenseof
bel
ongi
ngamongt
eam member
s.
4.Ef
fi
cientt
racki
ngandcont
rol
ofmat
eri
alsandper
for
mancemeasur
ement
.
Logi
sti
cs i
s an essent
ialpr
ocess t
hatsuppor
ts and enabl
es pr
imar
y busi
ness
act
ivi
ty such as aconst
ruct
ionpr
ojectt
obeaccompl
i
shed(
Sul
l
ivanetal
.,2010)
.A
l
ogi
sti
calv
iewi
s asol
i
dbasi
sfor
product
ivi
tyi
mpr
ovementand ev
ery const
ruct
ion
pr
ojectcanbeseenasanor
der
-del
i
ver
ypr
ocesswher
eal
lpar
ti
esal
ongt
hel
ogi
sti
cs
chai
n,suchassuppl
i
er,const
ruct
orandcl
i
ent
/buy
er,ar
einv
olv
edneeds as wel
las
sat
isf
ythe per
for
mance r
equi
rement
s of t
he cont
ract
or i
nthe mostef
fi
cient
way
possi
ble and i
tis a pr
ocess t
hatshoul
d hav
ethe f
oll
owi
ng char
act
eri
sti
cs:
-
(
Wegel
i
us-
Leht
onen,2001)
.The l
ogi
sti
cs oft
he suppl
y and del
i
ver
y ofmat
eri
als
t
o si
te has beeni
dent
if
ied as an ar
ea ofconst
ruct
ion suppl
ychai
n management
t
hatcoul
d benef
itf
rom sust
ainedi
mpr
ovement
.Whi
l
eaf
ewenl
i
ght
enedcompani
es
wi
thi
ntheconst
ruct
ioni
ndust
ryhav
ebegunt
oseet
hatgoodl
ogi
sti
cspr
act
icesanda
suppl
ychai
n managementv
iew ofbusi
ness ar
e essent
ialt
oachi
evi
ngsust
ainabl
e
i
mpr
ovement
,mostconst
ruct
ioncompani
eshav
eyett
oreal
i
zet
hebenef
it
sthat
canbe
achi
eved(
Hil
landBal
l
ard,
2001)
.

20|Page
2.
11.Theur
bant
ranspor
tpr
obl
em

Goods t
ranspor
ts pl
ay an i
mpor
tant r
ole i
n t
he pr
osper
it
y of t
he ur
ban
env
ironment
,but t
hey al
soaf
fectt
heur
banenv
ironmentnegat
ivel
y.I
ssuessuchas
emi
ssi
ons,
congest
ion,
noi
seandacci
dent
sar
efr
equent
lyat
tri
but
edt
o ur
bant
ranspor
t
i
ngener
aland ur
bangoodst
ranspor
tinpar
ti
cul
ar(
Dabl
anc,
2007;Li
ndhol
m,2010)
.
These i
ssues i
mpactt
he ur
ban env
ironmenton soci
al,economi
c andecol
ogi
cal
l
evel
s.Emi
ssi
onscan cause numer
ous heal
th pr
obl
emsand af
fectt
he qual
i
tyof
l
i
fefor
inhabi
tant
swhi
l
eatt
hesamet
imecont
ri
but
ingt
ogl
obalenv
ironment
ali
mpact
t
hrought
heemi
ssi
onofgr
eenhouse gases (
Ander
son,etal
.,2005)
.Economi
cal
l
y,
t
he cost
sincur
red t
hroughcongest
ionaf
fect
sinhabi
tant
s aswel
lascompani
es ,
and her
einl
i
est
hemai
n pr
obl
em oft
he ur
ban t
ranspor
tsy
stem;i
tisa compl
ex
t
ranspor
t sy
stem wher
e goods and passenger
s ut
il
ize t
he same,
l
i
mit
edi
nfr
ast
ruct
ure(
Car
lsson and Janné,2012;Dabl
anc,2007)
.Addi
ti
onal
l
y,t
he
t
ranspor
t sy
stem i
spopul
atedbyacombi
nat
ionofdi
ff
erentv
ehi
clet
ypesandr
oad
user
s,i
ncr
easi
ngt
her
iskofacci
dent
s.Thi
sleadst
otheur
bangoodst
ranspor
tsy
stem
notbei
ngasef
fi
cientasi
tcoul
dbe(
Lindhol
m,2012)
.As not
ed,anef
fi
cientgoods
t
ranspor
tsy
stem i
sa necessi
tyf
ort
heur
ban economy andshoul
d beapr
ior
it
yfor
ci
ti
es,i
nhabi
tant
sand compani
esal
i
ke.
in ur
ban ar
easar
esubj
ect
ed t
otheur
ban
t
ranspor
t

21|Page
Fi
gur
e2.
2-Mat
eri
alf
lowsi
nur
banar
easar
esubj
ect
edt
otheur
bant
ranspor
tpr
obl
em

2.
12.Logi
sti
csSy
stem Anal
ysi
s

Const
ruct
ion l
ogi
sti
cs i
s concer
ned wi
tht
he t
ranspor
tat
ion of mat
eri
alsf
rom
suppl
i
er/
manuf
act
urer
’swar
ehouset
otheconst
ruct
ionsi
test
orageandmov
ementof
mat
eri
alswi
thi
nthesi
tef
rom t
hest
oraget
othepoi
ntofuse.Ther
efor
e,appl
i
cat
ionof
t
heconceptof
nodesv
ersusl
i
nksi
sthemostsui
tabl
econcepti
nthi
scase.Nodesar
e
spat
ialpoi
ntswher
emat
eri
alsar
est
oredorpr
ocessedwhi
l
eli
nksar
ethet
ranspor
tat
ion
net
wor
kst
hatconnectt
henodest
oget
her
.Thenodesv
ersusl
i
nksmodeli
sil
l
ust
rat
edi
n
Fi
gur
e2.
3.TheFi
gur
e2.
3showsasi
mpl
elogi
sti
cssy
stem net
wor
kthatf
aci
l
itat
est
he
del
i
ver
yof
mat
eri
alst
otheconst
ruct
ionsi
teandsubsequentshi
pmentofmat
eri
als
f
rom t
hest
oraget
otheconst
ruct
ionar
ea.

Tr
anspor
t Mat
eri
alhandl
i
ng
Poi
ntof
Ware St
orage
use
house

Fi
gur
e2.
3:Nodesv
ersusLi
nksLogi
sti
csSy
stem

2.
12.
1Tr
anspor
tat
ion

Thi
sist
he l
i
nk bet
weent
hespat
ialnodes i
n al
ogi
sti
cs sy
stem t
hroughwhi
ch
mat
eri
als ar
e mov
edf
rom one node t
o anot
her
.Inconst
ruct
ion,t
ranspor
tat
ion
enhancest
hef
low ofmat
eri
alf
rom t
hesuppl
i
erormanuf
act
urert
otheconst
ruct
ion
si
te.
The r
equi
rementf
ort
ranspor
tat
ion ofmat
eri
alst
o const
ruct
ion si
tes i
sver
y
si
gni
fi
cant because t
heConst
ruct
ion pr
ocess consumes enor
mous quant
it
iesof
mat
eri
als(
Shakant
uetal
.,2008)
.Apar
tfr
omt
heneed t
o conv
ey l
arge quant
it
ies of

22|Page
mat
eri
als,t
ranspor
tat
ion of
ten accountf
ora si
gni
fi
cantpar
t,
bet
ween one-
thi
rdt
o
t
wo-
thi
rd, of t
he cost of l
ogi
sti
cs i
n many i
ndust
ri
es. On ot
her
r
esear
ch,
tr
anspor
tat
ionofconst
ruct
ionmat
eri
alsaccount
sforabout10-
20percentof
const
ruct
ioncost
.Thi
scosti
sint
ensi
fi
ed i
fthe costoft
he ener
gyconsumed f
or
t
het
ranspor
tat
ionofmat
eri
alst
otheconst
ruct
ionsi
tei
sincl
uded.
Sel
ect
ionofmodeoft
ranspor
tat
ion
Thechoi
ce ofanymode of t
ranspor
tat
ion andcar
ri
ert
ype f
or t
he del
i
ver
yof
mat
eri
als t
o t
he si
teaf
fect
sthe ef
fi
ciency oft
he const
ruct
ionpr
ocess and
cont
ri
but
essi
gni
fi
cant
lyt
otheov
eral
lcostof
const
ruct
ion.Tr
anspor
tat
ionaddsv
alue
bycr
eat
ingt
imeandpl
aceut
il
it
yi.
e.mat
eri
als ar
e madeav
ail
abl
e att
he appr
opr
iat
e
pl
ace at t
he appr
opr
iat
eti
me.Ther
efor
e,t
hequal
i
tyoft
ranspor
tat
ionaf
fect
sthe
av
ail
abi
l
ityofmat
eri
alandequi
pmentonsi
teandbear
sont
hepaceandqual
i
tyofwor
k
onsi
te.Thef
undament
alf
act
orst
hatdet
ermi
net
hechoi
ceoft
ranspor
tat
ioncar
ri
erar
e
costandt
ime.Ther
emustbet
rade-
offbet
weencostandt
imebecausesel
ect
ingal
ow
costcar
ri
ert
hatt
akesl
ongert
imet
odel
i
vermat
eri
alst
osi
tewi
l
lcausedel
ayofwor
kif
mat
eri
alsr
unoutonsi
tebef
oredel
i
ver
yandt
hiswi
l
ldef
ini
tel
yincr
easet
hecostof
const
ruct
ion.The ov
eral
lpar
amet
erst
hatdet
ermi
ne t
he choi
ce oft
ranspor
tat
ion
car
ri
erst
em f
rom t
he cost
-t
imePr
inci
pleandt
heyar
edescr
ibedasf
oll
ows(
Coy
leet
al
.,
2003)
:
1.Tr
anspor
tat
ion Cost
:Tr
anspor
tat
ion costanal
ysi
sis an i
mpor
tantcr
it
eri
on i
n
sel
ect
ingt
hemodeofconv
eyi
ngmat
eri
alsandequi
pmentt
otheconst
ruct
ionsi
teand
t
heanal
ysi
sinv
olv
esev
aluat
ingt
hebasi
cmodesoft
ranspor
tat
ion.Tr
anspor
tat
ioncost
i
ncl
udes t
he r
ate,mi
nimum wei
ght
s,l
oadi
ngandunl
oadi
ng f
aci
l
iti
es,packagi
ng and
bl
ocki
ng,damage i
ntr
ansi
tandst
oppi
ng i
ntr
ansi
tand t
hei
mpl
i
cat
ion ofsel
ect
ing
anyoft
hem.Thesear
ecostf
act
orst
obeconsi
der
edbef
oresel
ect
ingany
mat
eri
als
car
ri
er.
2.Tr
ansi
tTi
me:Tr
ansi
tti
mei
sthet
imer
equi
redf
ort
hepi
ck-
upofdel
i
ver
y,andt
ermi
nal
handl
i
ngofmat
eri
alsi
.e.t
he t
ime ofmov
ementbet
ween or
igi
n and dest
inat
ion
t
ermi
nal
s.Tr
ansi
tti
meaf
fect
sthest
oragel
evel
onsi
te.Whi
l
eshor
tert
ransi
tti
mesr
esul
t
i
nlowerst
oragecost
,longert
ransi
tti
mecanr
esul
tinmat
eri
alsst
ockout(
whi
chcan
causeoper
ati
ondownt
ime)

23|Page
3. Rel
iabi
li
ty: Thi
sist
heconsi
stency
oft
het
ransi
tti
meacar
ri
erpr
ovi
des. Mor
e
r
eli
abi
l
ityont
heser
vicepr
ovi
dedby
anycar
ri
erwi
l
lrequi
rel
owerst
oragel
evel
thanan
unr
eli
abl
eandi
nconsi
stent
del
i
ver
yser
vice.Thi
swi
l
ldef
ini
tel
yreducest
oragecost
4.Capabi
li
ty:Capabi
l
ityi
sthe abi
l
ityoft
he v
ehi
clet
o pr
ovi
de t
he f
aci
l
iti
es and
equi
pmentr
equi
redf
ort
hemov
ementoft
hemat
eri
als.Exampl
esofcapabi
l
ityf
act
ors
i
ncl
udeequi
pmentt
hatcanpr
ovi
der
equi
redt
emper
atur
e,humi
dit
yorspeci
almat
eri
al
handl
i
ngf
aci
l
iti
es.
5.Accessi
bil
it
y:Accessi
bil
i
tyi
sthe abi
l
ityof t
he v
ehi
clet
oreach t
he poi
ntof
del
i
ver
y. Theaccessi
bil
i
tyofacar
ri
eri
saf
fect
edbyt
heconst
ruct
ionsi
tel
ocat
ion,
geogr
aphi
c l
i
mit
s of t
he car
ri
er’
srout
e net
wor
k and const
rai
nts pl
aced by
r
egul
ator
yaut
hor
it
ies.
6. Secur
it
y: Secur
it
yis concer
ned wi
th t
he ar
ri
val ofmat
eri
alsi
n t
he same
condi
ti
ont
hey
wer
einwhent
ender
ed t
othecar
ri
er.Unsaf
ecar
ri
erser
vicecanr
esul
tin
t
hedel
i
ver
yof
damagedmat
eri
als,
whi
chmaynol
ongerbeusef
ulf
ort
heconst
ruct
ion
wor
k.

2.
12.
2War
ehouse/
Sit
eSt
orage

Thi
sisanodecomponentwi
thi
nnodesv
ersusl
i
nksl
ogi
sti
cssy
stem wher
emat
eri
als
ar
est
ored.I
tisapl
acewher
emat
eri
alsar
ekeptpr
iort
obei
ngused orf
ixed ont
he
const
ruct
ionsi
te.I
nspi
teoft
hei
mpor
tanceofst
orage,
sit
einv
ent
oryshoul
dbekeptat
t
hemi
nimum l
evelt
oreducecostbecauset
heunnecessar
yst
orageofl
argequant
it
ies
ofmat
eri
als on si
tewi
l
llead t
oint
err
upt
ion ofwor
k,ext
rahandl
i
ng and wast
e
(
Ber
tel
sen and Ni
elsen, 1997)
. Mat
eri
als t
hat ar
e pr
ocur
ed i
n l
arge
quant
it
ieswi
thoutcompl
yi
ngwi
tht
hepr
oduct
ionneedsonsi
tewi
l
lresul
tinwast
eof
r
esour
cesdur
ingst
ocki
ng,
handl
i
ngandt
ranspor
ti
ng.Howev
er,const
ruct
ioncont
ract
mustmakepr
ovi
sionf
ort
empor
aryyst
oragebecauseofsomeuncer
tai
ntyi
ntheper
iod
bet
weenor
der
ingandr
ecei
vi
ngmat
eri
als.Mat
eri
albuf
fer
sonconst
ruct
ionsi
teswi
l
l
hel
p t
o manage unpr
edi
ctabi
l
ity i
n t
he const
ruct
ion pr
ocess (
Hil
l and
Bal
l
ard,
2001)
.Fur
ther
mor
e,cont
ract
or’
sabi
l
ityt
ocar
ryi
nvent
oryi
sof
tenl
i
mit
edduet
o
r
est
ri
ctedst
oragecapaci
tyt
hatcan be pr
ovi
ded on si
te especi
all
yin maj
orci
ti
es
(
Sul
l
ivan etal
.,2010)
.The i
nabi
l
ity of
cont
ract
orst
o pr
ovi
de adequat
einv
ent
ory

24|Page
canr
esul
tini
nef
fi
cienci
essuchasbackl
ogs,capaci
tymi
smat
chandunav
ail
abi
l
ityof
mat
eri
als.Theor
der
ingofmat
eri
alsaf
terconst
ruct
ioncomest
oahal
tdue t
olack of
r
equi
red mat
eri
als l
eads t
o del
ays and addi
ti
onal cost char
ged by ex
press
del
i
ver
y.(
Ber
tel
senandNi
elsen,1997)
.Howev
er,t
hepr
obl
em ofmat
eri
alsunav
ail
abi
l
ity
onconst
ruct
ionsi
tesgoes bey
ond i
nadequat
e st
orage.Fr
equent
ly,mat
eri
alsar
e not
r
egi
ster
ed i
n any i
nvent
ory cont
rol
syst
em whi
chwi
l
lenhancev
isualcont
rolof
mat
eri
alsandensur
etheyar
eav
ail
abl
e.

2.
12.
3Mat
eri
alshandl
ing

Mat
eri
als"handl
i
ng on a const
ruct
ion si
tei
sthe shor
tdi
stance mov
ementof
mat
eri
als wi
thi
ntheconf
ines oft
he si
te.I
tis a const
ruct
ion l
ogi
sti
cs sy
stem
componentt
hatl
i
nksst
orageorpoi
ntof
del
i
ver
ywi
tht
heconst
ruct
ionar
ea.Mat
eri
al
handl
i
ngmaybemanual
,mechani
calorcombi
nat
ionof
bot
h.AsShapi
raetal
.(2007)
emphasi
zed,t
oday
’s const
ruct
ion pr
oject
s ar
e hi
ghl
ymechani
zed and t
hewor
king
env
ironmenti
sdomi
nat
edbymat
eri
alshandl
i
ngequi
pment
.Thet
ypi
calappl
i
cat
ionsof
pl
ant
andequi
pmenti
ncl
udemat
eri
alshandl
i
ngandl
i
fti
ngoper
ati
ons.Theut
il
izat
ionof
pl
antandequi
pmenti
mpr
oves t
he pr
oduct
ivi
ty,ef
fi
ciencyand cost
eff
ect
ivenessof
const
ruct
ionpr
oject
s.Anef
fi
cientmat
eri
als handl
i
ng equi
pmentst
rongl
yimpr
oves
compet
it
iveness t
hrough r
educt
ion of
handl
i
ngcost
,enhances pr
oduct
ionpr
ocess,
pr
ovi
desef
fect
iveut
il
izat
ion of manpower and r
educesl
eadt
ime.Ther
ear
efour
at
tri
but
eswhi
chi
mpar
ttheef
fi
ciencyofmat
eri
alhandl
i
ng:
mov
ement
,ti
me,
quant
it
yand
space(
Johnst
on,
1984)
.Ef
fi
cientmat
eri
alhandl
i
ng r
equi
rest
heuseofappr
opr
iat
e
handl
i
ngequi
pmentormet
hodt
omov
eanappr
opr
iat
equant
it
yofmat
eri
alswi
thi
na
mi
nimum spaceandov
ert
heshor
test per
iod oft
ime possi
ble.Mat
eri
alshandl
i
ng
equi
pmentshoul
dbeoper
atedati
tshi
ghest
rat
edspeedsubj
ectt
othesi
tecondi
ti
on
andwi
thoutaf
fect
ingsaf
ety
.
1Mov
ement
: The mov
ement di
mensi
on of mat
eri
als handl
i
ng i
nvol
ves t
he
conv
eyance ofmat
eri
alsi
ntot
hest
oragef
aci
l
ity
,wi
thi
nthest
oragef
aci
l
ityandf
rom
t
hest
oragef
aci
l
ityt
otheconst
ruct
ionar
eas.
2.Ti
me:Thet
imedi
mensi
onofmat
eri
alshandl
i
ngi
sconcer
nedwi
thmaki
ngmat
eri
als
r
eadyf
oruseatt
hepoi
ntofuse.Theshor
teri
ttakest
ogetmat
eri
alst
othepoi
ntofuse

25|Page
t
hel
owert
hechanceofwor
kst
oppage.Thi
sal
so makesi
tpossi
blet
o cr
eat
emor
e
spacequi
ckl
yint
hest
oragef
aci
l
ity
.
3.
Quant
it
y:The quant
it
ydi
mensi
on ofmat
eri
als handl
i
ng deal
s wi
tht
he di
ff
erent
usage ofhandl
i
ng equi
pment
.Mat
eri
alshandl
i
ngequi
pmenti
sdesi
gnedt
o car
ry
appr
opr
iat
equant
it
yof
loads,
andmov
ethem t
othepoi
ntofuse.
4.Space: The space di
mensi
on of mat
eri
als handl
i
ng has t
o do wi
th t
he
conf
ormi
ty oft
hehandl
i
ngequi
pmentwi
tht
hespace wi
thi
nthe st
orage f
aci
l
ityand
wi
thi
nthe si
te compound.Const
ruct
ion si
te mat
eri
alshandl
i
ng equi
pmenti
ncl
ude
f
orkl
i
ftt
rucks,dumper
s,hoi
stsand cr
anes.
The sel
ect
ion ofequi
pmentcan af
fect
t
heef
fect
ivenessand ef
fi
ciencyoft
heconst
ruct
ion si
tedependi
ngont
heoper
ati
ng
env
ironmentoft
he equi
pment
.In a const
ruct
ion env
ironmentwher
e onl
yl
imi
ted
numberof mat
eri
als handl
i
ng equi
pment i
s av
ail
abl
e,car
efulpl
anni
ng f
or t
he
oper
ati
on of
equi
pmenti
sneededf
oref
fi
cientl
ogi
sti
csmanagementonsi
te.Si
ncet
he
st
orageandsi
tespacear
efi
xed,
themat
eri
alhandl
i
ngsy
stem mustmaxi
mizet
heuseof
t
hisspace.

2.
13Concept
ualFr
amewor
k

Aconcept
ualf
ramewor
kisananal
yti
calt
oolwi
thsev
eralv
ari
ati
onsandcont
ext
s.I
tcan
beappl
i
edi
ndi
ff
erentcat
egor
iesofwor
kwher
eanov
eral
lpi
ctur
eisneeded.I
tisused
t
o makeconcept
ual
dist
inct
ionsandor
gani
zei
deas.St
rongconcept
ualf
ramewor
ks
capt
uresomet
hing r
eal
anddot
hisi
nawayt
hati
seasyt
orememberandappl
y

26|Page
2.
2Empi
ri
calRev
iew

2.
2.1I
nter
nat
ionalExper
ienceofLogi
sti
csManagementSy
stem i
nthe
Const
ruct
ionI
ndust
ry

Logi
sti
csmanagementi
nEur
ope

1.Pol
and’
sexper
ience

Logi
sti
cpr
ocessesar
epr
esenti
nvar
iousf
iel
dsofact
ivi
tywi
thi
nacompany(
pur
chase,
pr
oduct
ion,sal
e et
c.)
.Isol
ati
ng and i
ntegr
ati
ng l
ogi
sti
ctasks per
for
med by al
l
or
gani
zat
ionaluni
tsofacompanyr
esul
tsi
ncr
eat
ingl
ogi
sti
csdepar
tment
sthatco-
or
dinat
eal
lthef
lows.Thr
eebasi
cmodel
sofl
ogi
sti
csy
stemsar
etobeobser
vedi
n
bui
l
dingcompani
es:
[7]
1.I
nfor
mal
:wher
eco-
ordi
nat
ionofl
ogi
sti
ctasksofsepar
atedepar
tment
sandf
iel
dsof
act
ivi
tyi
senf
orcedwi
thi
ntheexi
sti
ngor
gani
zat
ional
str
uct
ureoft
hecompany
,

2.Semi
for
mal
:wher
eal
ogi
sti
csmanagert
akest
her
esponsi
bil
i
tyf
ort
hecoor
dinat
ion
ofl
ogi
sti
cpr
ocessesoft
hecompany
,buti
snoti
nchar
geoft
hedepar
tment
s,wher
e
t
hesepr
ocessesar
econduct
ed,

3.
For
mal
:wher
easepar
atedepar
tmentt
akesov
eral
lthel
ogi
sti
cpr
ocessesoft
he
company
.
Thest
udywasf
ocusi
ngonapar
ti
cul
armodelofl
ogi
sti
cssel
ect
edaccor
dingt
othe
cur
rentor
gani
zat
ionst
ruct
ureoft
hecompany
,it
star
get
sandmanagementst
rat
egy
.
Theact
ualsi
zeofcompanyi
sal
soi
mpor
tant
.97%ofal
lPol
i
shcont
ract
orsempl
oyup
t
o 20 peopl
e and,t
her
efor
e,hav
e no l
ogi
sti
cs depar
tmenti
nthei
rst
ruct
ure.The
semi
for
malmodelwi
thasi
ngl
especi
ali
sti
spr
efer
red.Lar
gerent
erpr
isest
hatusedt
o
hav
ewel
l
-dev
elopedl
ogi
sti
csdepar
tment
stendt
ogobackt
othesemi
for
malmodel
(
reducet
henumberofempl
oyees)ordeci
det
oout
sour
cet
hei
rpr
ocur
ement
.Numer
ous
sur
vey
sonl
ogi
sti
csy
stemsi
nconst
ruct
ioni
ndi
cat
edy
nami
cchangesi
nthi
sdomai
n[7]
Cont
ract
orsi
nPol
andar
eusual
l
yonl
ysi
ngl
eli
nksofl
ogi
sti
cchai
nst
hatpr
ovi
dea

27|Page
pr
ojectwi
thpr
oduct
s,ser
vices,i
nfor
mat
ionandf
inance.I
ncont
rastt
omanuf
act
uri
ng
i
ndust
ri
es,whi
chpr
ofi
twi
thl
ong-
last
ingpar
tner
shi
pwi
thsuppl
i
ersandcust
omer
s,
l
ogi
sti
c chai
ns i
n const
ruct
ion ar
e consi
der
abl
ymor
e di
ff
icul
tto manage and t
o
opt
imi
ze.Thi
sresul
tsf
rom:

4.Di
ver
sif
icat
ionofpr
oject
s(v
ari
ousmat
eri
als,met
hods,l
ocat
ion ofeachpr
oject
meansanewconst
ell
ati
onofsuppl
ychai
nmember
seacht
ime)t
echni
calcompl
exi
tyof
apr
oject
,

5.Numberofpar
ti
cipant
sint
hepr
oject
,

6.Domi
nat
ionoft
hebi
ddi
ngsy
stem ofcont
ract
oracqui
sit
ion(
random par
tner
shi
p
wi
thi
nthechai
n),

7.Di
ff
icul
tyi
nadj
ust
ingeachmember
’sl
ogi
sti
crout
inest
othel
ogi
sti
csy
stem oft
he
pr
oject
.
Ther
efor
e,t
heco-
oper
ati
onwi
thi
nthef
ramewor
koft
hepr
ojectsuppl
ychai
nisshor
t-
t
erm.Thepar
ti
cipant
sofaconst
ruct
ionpr
oject(
bui
l
der
s,suppl
i
ers,
empl
oyeret
c.)t
end
t
ocompet
eamongoneanot
hert
omaket
hemostoft
hepr
oject
.Thest
udypr
esent
s
r
esul
tsofat
en-
yearsur
veyofl
ogi
sti
csy
stemsofbui
l
dingcont
ract
orsandconst
ruct
ion
pr
oject
s.Consi
der
ingcont
ract
ors,t
hedat
awer
ecol
l
ect
edi
nyear
s1992–2003and
r
elat
eto:sour
cesofsuppl
y,del
i
ver
ycont
ractr
out
ines,cr
it
eri
aofsuppl
i
er’
ssel
ect
ion,
r
easonsofdel
i
ver
yinaccur
aci
es,
basesofmat
eri
aldemandf
orecastanddi
str
ibut
ionof
r
esponsi
bil
i
tyf
orl
ogi
sti
cdeci
sions.Thest
udyshowsanav
erageshar
eofv
alueof
pur
chaseaccor
dingt
osour
ceofsuppl
yfory
ear
s1996–2002.Ther
eisat
endencyof
decr
easi
ngdi
rectpur
chasef
rom manuf
act
urer
sfort
hebenef
itofwhol
esal
ers.Thi
sis
r
elat
ed t
o ot
hert
rends ofr
educi
ng own t
ranspor
tand usi
ng suppl
i
ers’del
i
ver
y
ser
vices.
Manuf
act
urer
sof
tenconcent
rat
eonpr
oduct
ionandof
fernot
ranspor
tser
vices.
I
nmostcases,del
i
ver
ycont
ract
sconcer
nsi
ngl
epr
oject
sandt
her
ear
enoexcl
usi
ve
suppl
i
ers,butal
ong-
ti
meco-
oper
ati
onwi
thanumberofsuppl
i
ersoccur
squi
teof
ten.
Suchpar
tner
shi
pal
l
owst
hecont
ract
ort
onegot
iat
ebet
tert
ermsofcont
ract(
discount
s,
t
ermsofpay
ment
).Thel
ong-
ti
mecont
ract
susual
l
yregar
dsel
ect
edr
angesofgoods.
Del
i
ver
yinaccur
aci
esoccurqui
teof
teni
nspi
teoft
heconsumerdomi
nat
ioni
nthe
mar
ket
.Basi
cgr
oundsf
ort
hem ar
ethef
inanci
aldi
ff
icul
ti
escausedbyempl
oyer
s’del
ay

28|Page
i
npay
mentandchangeofsequenceofwor
ksont
hebui
l
dingsi
te.Fur
therr
easonsar
e
er
ror
sint
hedesi
gn,er
ror
sinor
der
s,anddi
ff
icul
tyi
nobt
aini
ngnon-
typi
calmat
eri
als.
Ty
picalsuppl
i
erf
ail
uressuchaspr
obl
emswi
tht
ranspor
tar
erar
e.Basesofcont
ract
ors’
f
orecastofmat
eri
aldemandar
e:
Theconst
ruct
ionschedul
e(57%)
,thebi
l
lofquant
it
ies(
14%)andexper
ience(
29%)
.As
f
orl
ogi
sti
c deci
sions,t
her
e ar
e usual
l
y a numberofdeci
sion-
maker
s wi
thi
nthe
or
gani
zat
ionwhosescopeofact
ionsdi
ff
eraccor
dingt
othest
ruct
ureoft
heent
erpr
ise.
Wi
thr
egar
dtot
hesuppl
i
es,
mostdeci
sionsar
emadebyconst
ruct
ionorsi
temanager
s
andpur
chasi
ngdepar
tment
s

2.Swedenexper
ience

Logi
sti
csknowl
edgei
ssel
dom r
epr
esent
edi
ntheor
gani
zat
ionsi
nthei
ndust
ry,and
r
ainedl
ogi
sti
ciansar
einpr
inci
plenotseen,atl
eastnoti
ntheconst
ruct
ioncompani
es.
Thi
smakesdi
ff
icul
ti
esr
elat
ed t
ologi
sti
cshar
dto sol
ve,si
ncet
her
eisal
ackof
t
ermi
nol
ogyaswel
lasi
deasofpossi
blesol
uti
ons.Andi
ntheSwedi
shaswel
las
i
nter
nat
ionalr
esear
chr
elat
edt
otheconst
ruct
ioni
ndust
ry,l
ogi
sti
csi
sanal
mostnon-
exi
sti
ngf
iel
d.Anumberofst
udi
eshav
e
Comet
otheconcl
usi
ont
hatt
her
eisanenor
mouspot
ent
ialconcer
ningl
ogi
sti
csi
nthe
const
ruct
ionf
iel
d.[
17]
St
udyconduct
edshowst
her
eisal
ackofknowl
edger
egar
dingt
hecost
sassoci
ated
wi
thmat
eri
all
ogi
sti
csi
nconst
ruct
ion.St
udi
esf
ocusi
ngont
hehandl
i
ngofmat
eri
aland
wast
eatt
heconst
ruct
ionsi
tehav
eof
tenf
ail
edt
oincl
udemanyon-
sit
eact
ivi
ti
esand
costi
tems.Li
kewi
se,st
udi
es r
elat
ed t
othe suppl
y-
chai
n hav
e sel
dom i
ncl
uded
unconv
ent
ional
way
sofar
rangi
ngbuy
er-
suppl
i
err
elat
ionshi
ps.
The st
udy concer
ns t
he achi
evement of ef
fi
caci
ous mat
eri
all
ogi
sti
cs i
nthe
const
ruct
ioni
ndust
ryi
ngener
al,t
aki
ngexampl
efr
om t
heconst
ruct
ionofanapar
tment
bl
ocki
nGöt
ebor
g,Sweden.Thi
sconst
ruct
ionpr
ojecti
sanal
yzedf
rom t
woangl
es:f
ir
st,
on-
sit
emat
eri
alhandl
i
ngandsecond,suppl
yofmat
eri
alst
othesi
te.Theanal
ysesar
e
pr
esent
edi
ntwosepar
atepaper
s.
Commonobst
acl
eencount
eredf
ormostofSwedi
shhousi
ngconst
ruct
ionpr
oject
sist
o
pl
anpur
chasi
ngbasedoni
mmedi
atemat
eri
aluni
tpr
icesandnotont
het
otalpr
icef
or

29|Page
mat
eri
alconsi
der
ingsuppl
ychai
ncost
sincl
udi
ngor
der
ing,or
dersur
vei
l
lance,qual
i
ty
assur
ance,wr
appi
ng,pal
l
ets,packages,i
nter
ntr
anspor
tat
ion,ext
ernt
ranspor
tat
ion,
assembl
etechni
ques,uni
tpr
iceet
c.Pur
chaser
sof
tensubscr
ibet
otheeconomyof
scal
ephi
l
osophyandor
deri
nbul
ktogetv
olumedi
scountandr
educeperuni
tpr
ices.
Whati
snott
akeni
ntoconsi
der
ati
oni
stheext
racostt
hisbehav
iorcausesbecauseof
t
hewast
eitgener
ates.
Anot
herobst
acl
ement
ioned ont
hest
udywast
hepur
chasecy
clei
nconst
ruct
ion
pr
oject
s.Eachmat
eri
alpur
chasedhasi
tsownt
ender
ingphasecompr
isi
ngst
agessuch
as enqui
ry,pr
oposalev
aluat
ion and suppl
i
er sel
ect
ion.Once t
he suppl
i
er or
manuf
act
ureri
s chosen f
oreach mat
eri
alt
he acqui
sit
ion phase st
art
s,t
o or
der
,
coor
dinat
e,f
orecast
,anddi
str
ibut
eandt
omanaget
hemat
eri
alsi
nter
msofqual
i
ty,
quant
it
y,t
imeandpr
ice.Thet
imeusedf
ort
heseact
ivi
ti
escoul
dbeusedt
oaddmor
e
v
aluet
othepr
ojectandt
ofocusonwhatt
hecont
ract
ordoesbest
:bui
l
dinghouses.At
pr
esent
,suppl
i
ers hav
ethe knowl
edge t
o per
for
m some oft
he act
ivi
ti
es oft
he
pur
chasi
ngcy
clesuchasor
der
ing,
coor
dinat
ing,
for
ecast
inget
c.andar
ewi
l
li
ngt
otake
t
her
esponsi
bil
i
tyandr
iskassoci
atedwi
thdoi
ngt
hesebutcont
ract
orsar
enotaski
ng
t
hem t
odoi
t.
Thest
udyshowedt
hatt
hei
mpor
tanceofconst
ruct
ionl
ogi
sti
csi
sunder
est
imat
edby
const
ruct
ioncompani
es.I
nSwedi
shconst
ruct
ioni
ndust
rycompani
esar
enotawar
eof
how i
mpor
tantl
ogi
sti
csi
sandwhatcoul
dbet
heconsequencesofpoorl
ogi
sti
cs
pl
anni
ng.

3.Br
azi
l’
sexper
ience

I
ncr
easi
ngcompet
it
ionamongBr
azi
l
ianbui
l
dingcompani
eshasl
edt
hem t
odev
elop
new st
rat
egi
esf
ocusedonpr
oduct
ionaspect
sofconst
ruct
ion.Theyar
egi
vi
ngmor
e
i
mpor
tance t
o const
ruct
iver
ati
onal
i
zat
ion,qual
i
ty management sy
stems,l
abor
pr
oduct
ivi
ty,andmat
eri
all
ossst
udi
es[
11]
.Thest
udyi
ndi
cat
esl
ogi
sti
csi
mpr
ovement
al
so becomes an i
mpor
tantel
ementf
orbui
l
ding compani
es wi
shi
ng t
o dev
elop
compet
it
iveadv
ant
age.
Thepaperdi
scusseshowl
ogi
sti
csconcept
sandmanagementt
ool
scanbeappl
i
edt
o
bui
l
dingconst
ruct
ioni
nor
dert
oachi
evecompet
it
iveadv
ant
age.

30|Page
Fr
om r
andom sel
ect
ionofconst
ruct
ioncompani
esi
nBr
azi
lsel
ect
ed,
thr
eecasest
udi
es
wer
econduct
edi
nor
dert
oident
if
y:(
1)gener
aldi
ff
icul
ti
esi
nlogi
sti
csmanagement
pr
ocess;(
2)new v
isi
ons,met
hods and t
ool
sthatar
e bei
ng appl
i
ed on bui
l
ding
compani
es;(
3)t
heoppor
tuni
tyofusi
ngt
hesev
isi
ons,met
hodsandt
ool
sinbui
l
ding
compani
es.
Somekeypoi
ntsf
orl
ogi
sti
csef
fi
ciencyi
mpr
ovementi
dent
if
iedi
nthef
ir
stcompanyar
e:
1.St
rat
egi
cpol
i
ticsf
orsuppl
i
er’
srel
ati
onshi
pdef
ini
ti
on;

2.Si
tel
ayoutpl
anni
ngconsi
der
ingt
hedi
ff
erentsi
tephases;

3.Agent
’sr
olesandr
esponsi
bil
i
tiesdef
ini
ti
oni
nsi
tel
ogi
sti
csact
ivi
ti
es;

4.Dupl
i
cit
yel
i
minat
ionandv
eloci
tyi
ncr
easi
ngi
ndat
apr
ocessi
ngandi
nfor
mat
ion
Exchange.
Fort
hesecondcaset
hecompanyconcent
rat
esef
for
tsondev
elopi
ngmanagement
t
echni
quest
oobt
ainr
educt
ioncost
sandcompet
it
iveadv
ant
age.Somekeypoi
ntsf
or
l
ogi
sti
csef
fi
ciencyi
mpr
ovementi
dent
if
iedi
nthesecondcompanyar
e:

1.Logi
sti
cscoor
dinat
ionf
unct
iondef
ini
ti
on;

2.Gener
alpr
ocedur
esf
oracqui
sit
ionpr
ocessdef
ini
ti
on;

3.Suppl
ypl
ansel
abor
ati
on;

4.Dupl
i
cit
yel
i
minat
ionandv
eloci
tyi
ncr
easi
ngi
ndat
apr
ocessi
ngandi
nfor
mat
ion
Exchange.
I
nthet
hir
dcasest
udyt
aken,t
hemai
nkeypoi
ntsf
orl
ogi
sti
csef
fi
ciencyi
mpr
ovement
i
dent
if
iedar
e:
1.Pr
ocessi
ntegr
ati
onwi
thsuppl
i
ersi
ncr
ease;

2.I
nfor
mat
ionv
ehi
clesi
mpr
ovementi
ncl
udi
ngEl
ect
roni
cDat
aExchange(
EDE)
I
mpl
ement
ati
on;
3.I
nter
fer
encer
educt
ionamongsubcont
ract
orsandagent
srol
esandr
esponsi
bil
i
ties
Def
ini
ti
oni
nsi
tel
ogi
sti
csact
ivi
ti
es.
Al
thought
het
hreecompani
eshav
edi
ff
erentst
rat
egi
esanddi
ff
erentchal
l
engesf
or
l
ogi
sti
cs

31|Page
I
mpr
ovement
,itwaspossi
blet
onot
icet
hati
nal
loft
hem somephi
l
osophi
es,met
hods
andt
ool
sforl
ogi
sti
csmanagementar
esomehowbei
ngused.Butr
ecent
ly,
the“
Qual
i
ty
Mov
ement
”and,i
nacer
tai
nway
,thedi
ff
usi
onofJustI
nTi
me(
JIT)pr
inci
plesamong
Br
azi
l
ian bui
l
ding compani
es hav
e been i
nfl
uenci
ng posi
ti
vel
ythe Suppl
ylogi
sti
cs
pr
ocess.
Qual
i
tyMov
ementhasbeen i
nvol
vi
ng hundr
edsofcompani
esi
nthev
ery
di
ff
erent Br
azi
l
ian St
ates. Act
ual
l
yit consi
sts basi
cal
l
y on t
he di
ff
usi
on and
i
mpl
ement
ati
onofQual
i
tyManagementSy
stemsi
nthesef
ir
ms.Thesesy
stems,based
onI
SO 9000ser
ies,canhel
psuppl
ylogi
sti
csi
mpr
ovement
,par
ti
cul
arl
y,t
hrougha
st
andar
dizat
ionofpr
ocedur
es,t
hatar
einf
actoper
ati
onalt
ool
s,l
i
ke:(
1)speci
fi
cat
ions
and pur
chaseor
der
s;(
2)suppl
i
erssel
ect
ion and qual
i
ficat
ion;(
3)Mat
eri
alqual
i
ty
assur
ance;(
4) mat
eri
als and component
s del
i
ver
ies i
nspect
ion;(
5) cr
it
eri
afor
di
ver
gences sol
uti
on i
nthe r
elat
ionshi
ps bet
ween t
he company and suppl
i
ers.
Accor
ding t
othi
s st
udy
,some managementpr
act
ices t
hatar
e associ
ated t
o JI
T
phi
l
osophyar
e(1)Def
ect
sel
i
minat
ion;(
2)sel
f-
qual
i
tycont
rolandi
mmedi
atef
eedback
i
nfor
mat
ion;(
3)Wai
ti
ng t
ime bet
ween act
ivi
ti
es r
educt
ion;(
4)mat
eri
alhandl
i
ng
v
olumesr
educt
ion;
(5)Tr
anspar
encybyv
isual
cont
rol
;(6)adj
ust
mentoft
hesuppl
i
erst
o
t
he same i
deas.
None oft
he t
hree compani
es adoptJI
T sy
stems.Butmostof
managementpr
act
icesment
ionedabov
ear
eint
hescopeoft
hei
rpr
oduct
ionst
rat
egy
obj
ect
ivesi
n or
dert
oreduce st
ocks.So i
tispossi
blet
oident
if
yJI
T phi
l
osophy
i
nfl
uencei
nthei
rcur
rentpr
act
ice.

32|Page
4.Sout
hAf
ri
ca’
sexper
ience

Emuze,
F.A.andSmal
l
wood,
J.J[
18]r
epor
tsonr
esear
chconduct
edwi
tht
heov
eral
lai
m
ofi
dent
if
yingi
ssuescont
ri
but
ingt
oconst
ruct
ionper
for
mancei
mpedi
ment
,andt
hei
r
ef
fect
sin Sout
h Af
ri
ca.I
nter
ms ofl
ogi
sti
cs r
elat
ed pr
obl
ems,cont
ri
but
orst
o
i
nadequat
emanagementofl
ogi
sti
csi
nconst
ruct
ionar
e,l
ackofsi
temanagement
compet
ence,l
ackoff
ormalt
rai
ning,poorsi
temat
eri
alf
low management
,poorwor
k
schedul
econt
rol
,poormat
eri
alsuppl
y,st
orage,andhandl
i
ng,andpoori
nfr
ast
ruct
ure
and equi
pmentl
ocat
ion cont
ri
but
e mor
e ofa maj
orext
entt
othe i
nci
dence of
i
nadequat
emanagementofl
ogi
sti
csi
nSout
hAf
ri
ca.Thef
indi
ngsf
urt
herr
eveall
ackof
si
temanagementcompet
encer
elat
ivet
ologi
sti
csi
sper
cei
vedt
ocont
ri
but
ethemost
,
whi
l
epoorsi
tel
ayouti
sper
cei
vedt
ocont
ri
but
ethel
eastt
oinadequat
emanagementof
l
ogi
sti
cs.I
npar
ti
cul
ar,wi
tht
heex
cept
ionofpoorsi
tel
ayout
,ther
esear
chshowst
hat
ot
heri
dent
if
iedpr
act
icesabov
econt
ri
but
e,al
bei
tatv
ary
ingdegr
ees,t
oinadequat
e
managementofconst
ruct
ion l
ogi
sti
cs.Fur
ther
mor
e,t
he st
udy
indi
cat
esef
fect
s of
i
nadequat
emanagementofl
ogi
sti
csi
nconst
ruct
ion.Thesear
epoorqual
i
tyandt
ime
management
,andaddedcosti
nthepr
oject
,tobet
hemostl
i
kel
yef
fect
soft
hef
ail
uret
o
manageconst
ruct
ionl
ogi
sti
cspr
oper
lyi
nSout
hAf
ri
canconst
ruct
ion.Equal
l
yimpor
tant
,
under
uti
l
izat
ionofconst
ruct
ionv
ehi
cles,mat
eri
all
ossduet
odef
ect
sandt
hef
t,and
hi
ghl
evelofconst
ruct
ionwast
eonsi
tecoul
dev
ent
uat
eduet
opoorconst
ruct
ion
l
ogi
sti
cspr
act
ices.Tobebr
ief
,thest
udyi
ndi
cat
est
hataddedr
isksr
elat
ivet
oH&S,
poor
i
mageoft
hei
ndust
ryi
nter
msofcl
i
mat
echange,andl
ongmat
eri
alof
f-
loadi
ngt
imeon
si
tecoul
dmani
festasar
esul
tofi
nadequat
emanagementofl
ogi
sti
csi
nSout
hAf
ri
can
const
ruct
ion.

5.Et
hiopi
a’sexper
ience

Logi
sti
csmanagementpr
act
icei
nEt
hiopi
aisi
nit
sinf
antst
age.Et
hiopi
anl
ogi
sti
cs
sy
stem i
schar
act
eri
zedbypoorl
ogi
sti
csmanagementsy
stem andl
ackofcoor
dinat
ion
ofgoodst
ranspor
t,l
owl
evelofdev
elopmentofl
ogi
sti
csi
nfr
ast
ruct
ureandi
nadequat
e
f
leet
soff
rei
ghtv
ehi
clesi
nnumberandage,
damageandqual
i
tydet
eri
orat
ionofgoods
whi
l
ehandl
i
ng,
transpor
ti
ngandi
nst
orage.

33|Page
I
nadequat
ehumancapaci
tyi
ntheemer
gingeconomi
candsuppl
ychai
nmanagement
sy
stem i
n
Gov
ernment
alandpr
ivat
eor
gani
zat
ionsar
eamongt
hemaj
orbot
tl
enecksi
nthef
iel
dof
f
rei
ghtt
ranspor
tandl
ogi
sti
csact
ivi
ti
esi
nEt
hiopi
a.I
nor
dert
oreal
i
zet
heobj
ect
ivesand
ensur
ethatt
hecount
ry'
svi
sionanddr
eam comet
rue,acoor
dinat
edandconcer
ted
ef
for
toni
nnov
ati
vet
ranspor
tandl
ogi
sti
cssy
stem atnat
ionall
eveli
scr
it
icalt
oaspi
re
bey
ondwhati
srequi
redbyt
heMDGs.
Some oft
he const
rai
nts associ
ated wi
thl
ogi
sti
cs sy
stem i
n Et
hiopi
a ar
e,under
dev
elopment of l
ogi
sti
cs management sy
stem,damage of goods and qual
i
ty
det
eri
orat
ionwhi
l
einst
orage,
Packagi
ng,t
ranspor
ti
ng and,l
ack ofor
gani
zat
ion and managementt
ool
sthati
s
r
equi
red
t
opr
omot
eint
ermodal
syst
em.
[10]
Fi
nanceandEconomyDev
elopmentBur
eauhasr
eleasedmanual
‘St
ockmanagement
manual
’hasbeendev
elopedi
n2010.I
npr
evi
ousy
ear
s;st
ockswer
ehandl
ed
t
radi
ti
onal
l
yandusi
ngdi
ff
erentt
echni
quesnoti
nor
gani
zedandsy
stemat
icway
.
Accor
dingt
othebur
eau,
itwasdi
ff
icul
ttomanagel
ogi
sti
cswor
kwi
thoutsy
stemat
ic
wor
kingenv
ironmentandst
il
lther
ear
eal
otofpr
obl
emsi
nimpl
ement
ingt
hismanual
.
Themanual
hasdescr
ibedi
ndet
ail
howst
ockcanbehandl
edandhascr
eat
eddi
ff
erent
checkl
i
stst
ofaci
l
itat
est
ockcont
rol
l
ingpr
ocedur
es.
[19]
Themanual
hasadescr
ipt
ionon
1.Ver
if
icat
ionandi
dent
if
icat
ionofi
tems

2.St
ockdi
str
ibut
ion

3.St
ocki
nvent
ory

4.Per
sonnel
’
sresponsi
bil
i
tyandwhodoeswhat

5.Met
hodsf
orst
ockcont
rol
and

6.St
ockpi
l
emanagement
Accor
ding t
oar
esear
ch by AbebeZel
ueland Sol
omon Ber
he [
5],The Ur
ban
Dev
elopmentPol
i
cyandt
hePl
anf
orAccel
erat
edandSust
ainabl
eDev
elopmentt
oEnd
Pov
ert
y(PASDEP)st
rat
egy
,hav
etheobj
ect
ivesofpr
omot
ingt
her
oleofur
banar
easi
n

34|Page
t
heov
eral
lnat
ionaldev
elopment
.Thepol
i
cyandt
hest
rat
egyar
efur
therar
ti
cul
atedi
n
t
heI
ntegr
atedHousi
ngDev
elopmentPr
ogr
am (
IHDP)
,whi
chhasmul
ti
-sar
tor
ialgoal
s,
v
iz.
,pr
ovi
sionofaf
for
dabl
eandl
ow-
costhousi
ng,
empower
ingur
banr
esi
dent
sthr
ough
pr
oper
tyowner
shi
p,j
obcr
eat
ionandi
ncomegener
ati
on,andi
mpr
ovementofqual
i
tyof
t
he ur
ban env
ironment
al,i
nfr
ast
ruct
ure dev
elopment
,et
c.and t
he ur
ban r
enewal
pr
ogr
am.
Outoft
het
otal
popul
ati
onofEt
hiopi
a16%or11.
7mi
l
li
onpeopl
ear
ebel
i
evedt
odwel
li
n
ur
banar
easwhi
l
etheannualpopul
ati
ongr
owt
hrat
eisest
imat
edt
obe4.
3%ormor
e
t
hanhal
fami
l
li
on.I
nrel
ati
ont
othi
s,asst
udi
esi
ndi
cat
e,t
her
ewasadef
ici
tofabout
900t
housandhousi
nguni
tsi
nur
banar
eas.Si
nce2005Et
hiopi
ahasbeeni
mpl
ement
ing
anambi
ti
ousgov
ernment
-l
edl
ow-andmi
ddl
e-i
ncomehousi
ngpr
ogr
am:TheI
ntegr
ated
Housi
ngDev
elopmentPr
ogr
am (
IHDP)
.Thei
nit
ialgoaloft
hepr
ogr
am wast
oconst
ruct
400,
000condomi
nium uni
ts,cr
eat
e200,
000j
obs,pr
omot
ethedev
elopmentof10,
000
mi
cro -and smal
l-ent
erpr
ises,enhancet
hecapaci
tyoft
heconst
ruct
ion sect
or,
r
egener
atei
nner
-ci
ty sl
um ar
eas,and pr
omot
e homeowner
shi
pfor l
ow-
income
househol
ds.Fr
om t
he 400 t
housand house uni
tst
o be const
ruct
ed whi
ch t
he
const
ruct
ionofmor
ethan150t
housandhousi
nguni
tswascompl
eted,t
hisshowst
he
pr
ogr
am i
sbehi
ndschedul
e.[
20]
Oneoft
hemai
nreasonsf
ort
hel
esshousi
ngconst
ruct
ionper
for
mance,asspeci
fi
cal
l
y
i
ndi
cat
edabov
eisl
essconst
ruct
ionmat
eri
alsandl
essl
ogi
sti
cssuppor
t.I
nrel
ati
ont
o
r
esol
vi
ngt
hesebot
tl
enecksment
ionedabov
e,v
ari
ousef
for
tswi
thr
egar
dst
opr
ovi
ding
ski
l
ltr
aini
ng,f
inance,machi
ner
yandequi
pmenti
naddi
ti
ont
otheext
ensi
vesuppl
yof
const
ruct
ionmat
eri
alsandl
ogi
sti
cst
hatbr
oughti
ncr
easedcapaci
tyofi
mpl
ement
ing
agenci
es,cont
ract
ors,consul
tant
s and pr
ofessi
onal
s.Butst
il
lthe pr
ogr
ess of
const
ruct
ingt
hesecondomi
nium housesi
snotasexpect
ed.Thepr
ojectdel
ayhas
r
eachedupandabov
e200per
cent
,andal
sot
her
eiscostov
err
unwhi
chmakest
hel
ow
costhousesexpensi
ve

CHAPTER3

3.
1Dat
aAnal
ysi
sandDi
scussi
on

Consi
der
ing t
he si
gni
fi
cantcont
ri
but
ions ofconst
ruct
ion i
ndust
ryt
othe nat
ional

35|Page
economi
esofdev
elopi
ngcount
ri
es;i
tsmaj
orconst
ruct
ionact
ivi
ti
esaccountf
orabout
80% oft
het
otalcapi
talasset
s,andl
ooki
ngatt
heper
cent
ageconst
ruct
ionmat
eri
al
consumes,
whi
chi
supt
o70per
centi
napr
oject
,iti
svi
talt
ogi
veav
erygoodl
ooki
nto
gaps.I
nst
udy
ingt
heabov
echeckl
i
stt
her
ear
epol
i
cieswhi
chcanbeusef
ulf
ort
he
l
ogi
sti
csmanagementpr
ocessi
ftheyar
eimpl
ement
edcor
rect
ly.Thegapsi
dent
if
ied
i
ncl
ude,bul
kor
derf
ormaj
orconst
ruct
ionmat
eri
als,l
i
ke,cement
,rei
nfor
cementbar
s,
sani
tar
yfi
xtur
es,el
ect
ri
calf
ixt
ures,et
c..
,notassi
gni
ngski
l
ledmanpowert
othesect
or
andnon-
syst
emat
icmat
eri
aldi
str
ibut
ion.Fur
ther
mor
e,handl
i
ngmat
eri
alsi
nst
orage
andqual
i
tycont
roli
ndesi
gnandpr
oduct
ionf
orconst
ruct
ionel
ement
s,especi
all
y,i
nthe
caseofSmal
landMedi
um Ent
erpr
iseSMEwhoar
ethemaj
ormat
eri
alsuppl
i
ert
oAddi
s
AbabaHousi
ngConst
ruct
ionpr
ojecthasbeeni
dent
if
iedascr
it
icalgaps.Thi
sst
udy
t
her
efor
eint
endst
opr
ovewor
kingont
hesegapswoul
dsi
gni
fi
cant
lysav
ewast
age,
enabl
eto del
i
verbet
terqual
i
tyconst
ruct
ion wor
k wi
th mi
nimi
zed del
ay.Mat
eri
al
pr
ocur
ementexecut
ioni
sident
if
iedi
fiti
scent
ral
l
yori
nbr
anchof
fi
ces.Butbul
k
t
ransact
ioni
sdoneonl
yfort
hebenef
itofdi
scount
,notanal
yzi
ngt
hedi
sadv
ant
age,
whi
chi
s,wast
eanddamageencount
ered.Ev
ent
hought
hecheckl
i
stexpl
ainsi
ndet
ail
howmat
eri
alsf
orpr
oduct
ionar
edi
str
ibut
edf
ort
heMSE,howpr
oduct
ioni
ssuper
vised
byt
heconsul
tantanddel
i
ver
yisper
for
medwi
tht
heconf
ir
mat
ionandsi
gnat
ureoft
he
super
visor
s.Qual
i
tyofpr
oduct
ioni
sst
il
lamaj
orpr
obl
em obser
vedi
npr
oduct
ionsi
tes.
Thedocumentst
atest
her
eisapenal
tysetbyt
hepr
ojectof
fi
cei
ftheent
erpr
isesdonot
compl
ywi
th but
,Icoul
d notf
ind anywr
it
ten ev
idence.I
n sel
ect
ing l
ocat
ion f
or
est
abl
i
shi
ngst
oresf
ort
hemat
eri
als,ev
ent
houghst
oret
ypesandst
andar
dar
eset
,
pr
ojectsi
tesar
echangedev
eryt
ime,somenearot
herf
ardi
stancef
rom st
oret
othe
pr
ojectsi
tei
sonef
act
orwhi
chcoul
daf
fectt
hepr
ojecti
nter
msofdel
ayi
ndel
i
ver
yti
me
whi
chcanber
elat
edt
ocost
,tr
aff
iccongest
ionr
elat
edt
oenv
ironment
aldegr
adat
ion.
Mat
eri
alswhi
char
est
oredi
nopenar
ea,
whi
char
enotgi
venenoughpr
otect
ionagai
nst
weat
her
,thef
t,et
c…,whi
chcoul
dleadt
ounnecessar
ywast
e.Regar
dingmanpower
assi
gnedf
ort
hemat
eri
alst
okemanagementi
nrecei
vi
nganddi
str
ibut
ionpr
ocess;t
he
documentst
atedt
hatt
heassi
gnedpeopl
ear
enotenoughi
nquant
it
yandqual
i
ty.These
ar
enotassi
gni
ngt
her
ightper
sonont
her
ightpl
ace,i
nadequat
esal
aryscal
e,whi
ch
coul
dleadt
oincompet
encyandcor
rupt
ion,
notgi
vi
ngcont
inuousupgr
adi
ngt
rai
ningf
or

36|Page
t
heempl
oyee.I
nmat
eri
alwast
agemanagement
,causesf
orwast
agecoul
dbe,
procur
ed
mat
eri
alscoul
dnotbei
ncompat
ibl
ewi
thwor
kpl
an,anddemandi
sdi
ff
erentwi
th
di
str
ibut
ion.Mat
eri
alcoul
dbei
ndamagef
ort
her
easoni
mpr
opert
ranspor
tat
ionsy
stem.
Mat
eri
alsar
edi
str
ibut
edaf
terkeepi
ngst
okenotdi
rectdi
str
ibut
ionsy
stem,l
eadi
ngt
o
damage when l
oadi
ng/
unl
oadi
ng.The pr
ojectof
fi
ce i
s noti
nsur
ed f
orexpensi
ve
mat
eri
alsi
ncasei
fther
eisanydamageencount
ered.I
nloadi
ng/unl
oadi
ng,mat
eri
als
wi
l
lgetdamagedbecauseofmi
shandl
i
ngoft
hel
abor
s.Mat
eri
all
i
kechemi
cal
sforagr
o
st
onear
eexposedf
orwast
age,or
igi
nalcont
aineri
slar
gesodur
ingdi
str
ibut
iont
othe
sub ci
ty br
anches smal
l
ercont
ainerwi
l
lbe used,so t
hati
twi
l
lspi
l
lof
fand
wast
ed.
Dur
ingi
nvent
ory
,di
ff
erentmet
hodsar
ement
ionedi
nthedocumentf
orsudden
andschedul
edi
nvent
orysy
stem.St
il
lwor
ker
sassi
gnedi
nthest
ockcont
rol
l
ingsy
stem
ar
einshor
tandt
hei
rwor
kisnotsuppor
tedwi
thmoder
ntechnol
ogycommuni
cat
ion
sy
stem andt
hei
rcapaci
tyi
snotupgr
adedwi
thcont
inuoust
rai
nings.Al
sot
hecheckl
i
st
i
dent
if
ied di
ff
erentcauseofwast
esand how t
o cont
rolt
his.Forexampl
e,i
nthe
pr
oduct
ionofagr
ost
one,maj
orwast
esour
cei
sthest
andar
dsi
zeoft
hemat
eri
al
del
i
ver
edf
rom pr
oduct
ion,
whi
chi
snotcompat
ibl
ewi
tht
hedemandi
ntheconst
ruct
ion
si
te.Thi
spr
obl
em comesf
rom communi
cat
iongapbet
weent
hepr
oduct
iont
eam and
t
eam i
nthepr
ojectsi
te.Theot
hermaj
orsour
ceofwast
eismat
eri
alst
ocksy
stem i
nthe
const
ruct
ionsi
tet
hati
sst
ori
ngt
hemat
eri
alexposedt
oweat
her
.Butst
il
lthi
ssi
tuat
ion
canbeobser
vedi
nsi
te.Ev
ent
hisobser
vat
ioni
sconf
ir
medi
nthedocumentt
hepr
oject
of
fi
cei
susi
ng.
Inmat
eri
alr
educt
ion,t
heof
fi
cei
str
yingt
odosomewor
kregar
ding
r
educt
ionofwast
agei
ndi
ff
erentconst
ruct
ionmat
eri
als.Rel
atedt
othi
s,t
hepr
oject
of
fi
cet
ri
edt
oest
abl
i
shassoci
ati
onsf
orl
aborf
orl
oadi
ng/
unl
oadi
ngoft
hemat
eri
aland
t
her
ate.Theconceptbyi
tsel
fisgood,buti
tsi
mpr
opermanagementcausesmany
pr
obl
ems.Thesear
e,t
heempl
oyeesi
nthest
ockmanagementandmat
eri
aldi
str
ibut
ion
spendmuchoft
hei
rwor
kinghour
sbyi
nter
fer
ingi
nthenegot
iat
ionbet
weent
hel
abor
s.
Car
elessnessandundi
sci
pli
nedbehav
iorofl
abor
sint
hel
oadi
ng/
unl
oadi
ngi
sobser
ved
whi
ch coul
d cause damage t
othe mat
eri
als and ev
en di
stur
bing t
he wor
king
at
mospher
e.Regar
ding pr
oduct
ioni
ntheMSE,mat
eri
ali
spr
oduced wi
tht
heor
der
r
ecei
vedf
rom t
hepr
ojectof
fi
ce.Mat
eri
alswhi
char
epr
oducedi
ntheent
erpr
isesi
ncl
ude
pr
ecastbeams,HCBf
ort
hesl
abandwal
l
,di
ff
erentf
loor
ingt
il
es,doorandwi
ndow

37|Page
f
rames,RHSr
oofst
ruct
ure,et
c….Ther
ow mat
eri
alsar
edel
i
ver
edf
rom t
hepr
oject
of
fi
ceswi
thpr
oduct
ionor
der
.Butdel
i
ver
yofpr
oductf
rom t
heent
erpr
isest
othe
or
der
edsi
tei
slat
emostoft
het
imeandal
sopr
ecessi
onofpr
oducti
sinquest
ion,
whi
chcoul
dcausedel
ayi
ntheconst
ruct
ionandl
otsofwast
edmat
eri
alsar
eobser
ved
i
nsi
te.Themai
ncausef
ort
hisi
s,unqual
i
fiedpeopl
eint
hepr
oduct
ionsi
te,
shor
tageof
knowl
edgewhi
chcoul
dbeat
tai
nedwi
thcont
ent
ioust
rai
ning,l
uckofdi
sci
pli
newhi
ch
coul
dcr
eat
ecommuni
cat
iongapbet
weent
heMSEandpr
ojectof
fi
ce.Theot
hermaj
or
pr
obl
em whi
chcoul
dber
aisedi
nrel
ati
ont
owast
ageofmat
eri
alsi
scompr
omi
si
ngi
n
qual
i
tyofpr
oduct
s.Thi
scan beobser
ved i
npr
ojectsi
tesev
en t
houghqual
i
tyof
pr
oduct
ioni
ssuper
visedbyt
heconsul
tantandal
sobyt
hepr
ojectof
fi
ce,
thi
sissuehas
beenr
epeat
edl
yobser
ved

CHAPTER4:SUMMARY

4.
1Summar
y

Byt
aki
ngUNEP dat
a,i
tsi
mpor
tanceemanat
esl
argel
yfr
om t
hedi
rectandi
ndi
rect
i
mpacti
thasonal
leconomi
cact
ivi
ti
es.I
tcont
ri
but
est
othenat
ionalout
putand
st
imul
atest
hegr
owt
hofot
hersect
orst
hroughacompl
exsy
stem ofl
i
nkages.I
tis
not
edt
hataboutone-
tent
hoft
hegl
obaleconomyi
sdedi
cat
edt
oconst
ruct
ingand
oper
ati
nghomesandof
fi
ces.I
tfur
therobser
vest
hatt
hei
ndust
ryconsumesone-
sixt
h
t
o one hal
foft
he wor
ld’
s wood,mi
ner
als,wat
erand ener
gy.I
tcont
ri
but
es t
o
empl
oymentandcr
eat
esi
ncomef
ort
hepopul
ati
onandhasmul
ti
pli
eref
fect
sont
he
economy
.Theconst
ruct
ioni
ndust
ryempl
oysl
argeunski
l
ledl
abor
.Thr
oughoutt
he
dev
elopi
ngwor
ld,
themaj
ori
tyofempl
oyeesi
nthei
ndust
ryar
eunski
l
ledSi
mil
art
oot
her
dev
elopi
ng count
ri
es,t
he const
ruct
ion i
ndust
ryhasi
mpor
tantcont
ri
but
ionst
othe
Et
hiopi
aneconomy
,asdemonst
rat
edbyi
tsshar
eint
heGDP.
Theshar
eoft
hesect
ori
n
t
het
otalGDP av
eragedatabout5.
2per
centi
ntheper
iod2002/
03-2006/
07.The
const
ruct
ioni
ndust
ryal
socont
ri
but
est
othegener
ati
onofr
evenuef
ort
hegov
ernment
.
Ther
ent
ali
ncomet
axi
soneoft
hemaj
orr
evenuesour
ceswi
thi
ntheconst
ruct
ion
i
ndust
ryt
othegov
ernment
.Ther
ent
ali
ncomet
axwhi
chwasBi
rr15.
2mi
l
li
oni
n
1997/
98hasi
ncr
easedt
oBi
rr78.
3mi
l
li
oni
n2004/
05butl
ower
edt
oBi
rr32mi
l
li
oni
n
2005/
06gener
ati
ngnear
lyhal
faper
cent
agepoi
ntoft
het
otalgov
ernmentr
evenue.

38|Page
Const
ruct
ioni
ndust
rypl
ayssi
gni
fi
cantr
olei
ntheeconomyofdev
elopi
ngcount
ri
es.For
exampl
e,i
nmanydev
elopi
ngcount
ri
es,maj
orconst
ruct
ionact
ivi
ti
esaccountf
orabout
80% oft
het
otalcapi
talasset
s,10% oft
hei
rGDPandmor
ethan50% oft
heweal
th
i
nvest
edi
nfi
xedasset
s.I
naddi
ti
on,
thei
ndust
rypr
ovi
deshi
ghempl
oymentoppor
tuni
ty,
pr
obabl
y nextt
o agr
icul
tur
e.Despi
tei
ts mul
ti
ple benef
it
sto count
ry’
s’GDP,t
he
const
ruct
ioni
ndust
ryi
soneoft
hemostcompl
exi
ndust
ri
es.Theconst
ruct
ionpr
ocess
consi
stsofsev
eralphaseswher
emanydi
ff
erentpar
ti
cipant
sar
einv
olv
eddur
ingeach
phase.Theuni
quenessoft
hisi
ndust
ryi
sthati
tisapr
ojectbasedi
ndust
ry,
wher
eeach
const
ruct
ionpr
ojectcoul
dbeconsi
der
edasat
empor
aryor
gani
zat
ion.
Theconceptof
l
ogi
sti
csi
nit
smoder
nfor
m dat
esbackt
othesecondhal
ftot
he20t
hcent
ury
.Si
nce
t
hen,i
thasdev
elopedi
ntoawi
del
yrecogni
zeddi
sci
pli
neofsi
gni
fi
canti
mpor
tancet
o
bot
htheor
yandpr
act
ice.I
tisappar
entt
hatnei
therast
andar
dizedl
ogi
sti
csconceptnor
aconsi
stentnot
ionofl
ogi
sti
csexi
sts.Whi
l
esomer
educet
hei
runder
standi
ngt
osi
mpl
e
t
ranspor
ti
ng-
,handl
i
ng-
,andwar
ehousi
ngoper
ati
ons,
other
svi
ewl
ogi
sti
csmor
ebr
oadl
y
as a management f
unct
ion.
Abadi
rH.
Yimam,and Ol
usanj
oOl
ani
ranFadi
ya,(
2011,
2012)
[2,
12]
def
ined const
ruct
ion pr
ojectas t
empor
ary endeav
or(
thathas def
ini
te
begi
nni
ngandendt
ime)
under
takenf
oll
owi
ngspeci
fi
ccy
cleofI
nit
iat
ion,Def
ini
ti
on,
Pl
anni
ng,Execut
ionandCl
oset
ocr
eat
eauni
quepr
oduct
,ser
vice,orr
esul
tthr
ough
nov
elor
gani
zat
ionandcoor
dinat
ionofhuman,mat
eri
alandf
inanci
alr
esour
ces.Duet
o
t
henat
ureoft
hepr
oject
s,someoft
hemar
eusual
l
ycapi
tali
ntensi
ve,compl
ex;and
r
equi
resi
gni
fi
cantmanagementski
l
ls,i
nvol
vementandcoor
dinat
ionofawi
der
angeof
exper
tsi
nvar
iousf
iel
ds.Theyal
somustaddr
esst
hegeogr
aphyandcondi
ti
onsoft
he
pr
ojectsi
teandt
her
elat
ionoft
hepr
ojectt
otheenv
ironment
.Logi
sti
csmanagement
r
efer
stot
he st
rat
egi
c and cost
-ef
fect
ive st
orage,handl
i
ng,t
ranspor
tat
ion and
di
str
ibut
ion of r
esour
ces,t
hatmeans managi
ng one of t
he mai
n act
ivi
ti
es i
n
const
ruct
ioni
ndust
ry.I
tisanessent
ialpr
ocesst
hatsuppor
tsandenabl
est
hepr
imar
y
busi
nessact
ivi
ty,l
i
ket
heconst
ruct
ionofabui
l
dingi
naci
ty,t
obeaccompl
i
shedThe
costofmat
eri
alsi
nat
ypi
calconst
ruct
ionpr
ojectcant
akeupar
ound65percentoft
he
t
otalconst
ruct
ion cost
s.I
n or
dert
o mi
nimi
zet
he costofconst
ruct
ion mat
eri
als,
manager
sandpl
anner
sshoul
dnotonl
yst
ri
vet
oreducet
hewast
ageandr
ewor
kbut
t
heyshal
lal
socutdownont
hecost
sper
ti
nentt
othel
ogi
sti
csofmat
eri
alsespeci
all
y

39|Page
t
hosewhi
char
eofbul
kynat
ure,Managi
ngl
ogi
sti
csi
ntheconst
ruct
ionsect
orcanbe
consi
der
edasmaj
ori
ssuewhenweseehowi
tinf
luencest
hecosti
npr
oject
s.Di
ff
erent
count
ri
eshav
edi
ff
erentpr
act
icest
hatcanaf
fectt
hei
rpr
oject
sposi
ti
vel
yornegat
ivel
y.
Exper
iencesofmanycount
ri
esi
nEur
opeshowt
hatl
ogi
sti
csmanagementdepar
tment
i
snotest
abl
i
shedi
nConst
ruct
ionCompany
’sor
gani
zat
ion,notconsi
der
ingl
ogi
sti
csas
mai
npar
toft
heconst
ruct
ionwor
k..
Forexampl
e,const
ruct
ioncompani
esi
nPol
and
andSwedenpr
efersemi
for
malmodelwi
thasi
ngl
especi
ali
st.Bul
kor
deri
squi
teof
ten
i
nSwedenwhi
chwoul
dleadt
owast
eanddamageoft
hemat
eri
alsduet
ohandl
i
ng.But
t
hispr
act
icei
sseeni
nmostofconst
ruct
ioncompani
esi
nthewor
ldf
ort
hebenef
itof
di
scounti
nuni
tpr
iceandt
ranspor
tat
ioneasi
ness.Commonpr
act
icei
nmostoft
he
count
ri
esi
nthewor
ld;al
otoft
imewi
l
lbeconsumed f
ort
hepur
chasecy
clei
n
const
ruct
ionpr
oject
sthatcausest
hecont
ract
orl
osesf
ocusonbui
l
dinghouses.
Brazi
l
i
sacount
ryt
hathasadv
ancedi
nmanagi
ngl
ogi
sti
csi
nit
sconst
ruct
ioncompani
es.
Somephi
l
osophi
es,met
hodsandt
ool
sforl
ogi
sti
csmanagementwer
ebei
ngusedi
n
mostofconst
ruct
ioncompani
es[
6].Mostbui
l
dingcompani
eshasbeeni
nfl
uencedby
JustI
n Ti
me (
JIT)pr
inci
ples,t
hat
are,def
ect
s el
i
minat
ion;sel
f-
qual
i
tycont
roland
i
mmedi
atef
eedbacki
nfor
mat
ion;wai
ti
ngt
imebet
weenact
ivi
ti
esr
educt
ion;mat
eri
al
handl
i
ngv
olumesr
educt
ion;t
ranspar
encybyv
isualcont
rol
;adj
ust
mentoft
hesuppl
i
ers
t
othesamei
deas.Qual
i
tyManagementSy
stemshasal
sobeenpr
act
icedi
nhundr
eds
ofcompani
esi
nthev
erydi
ff
erentBr
azi
l
ianSt
ates.Thesy
stem canhel
psuppl
ylogi
sti
cs
i
mpr
ovement
, par
ti
cul
arl
y,t
hrough a st
andar
dizat
ion of pr
ocedur
es, l
i
ke (
1)
speci
fi
cat
ions and pur
chase or
der
s;(
2)suppl
i
ers sel
ect
ion and qual
i
ficat
ion;(
3)
mat
eri
alqual
i
tyassur
ance;(
4)mat
eri
alsandcomponent
sdel
i
ver
iesi
nspect
ion;(
5)
cr
it
eri
afordi
ver
gencessol
uti
oni
nther
elat
ionshi
psbet
weent
hecompanyandsuppl
i
ers.
Regar
dingAf
ri
ca’
sexper
ience,t
hechal
l
engei
snotmuchdi
ff
erentf
rom ot
her
s.For
exampl
e,I
nident
if
ying l
ogi
sti
cs r
elat
ed pr
obl
ems i
n Sout
h Af
ri
ca,cont
ri
but
orst
o
i
nadequat
emanagementofl
ogi
sti
csi
nconst
ruct
ionar
e,l
ackofsi
temanagement
compet
ence,l
ackoff
ormalt
rai
ning,poorsi
temat
eri
alf
low management
,poorwor
k
schedul
econt
rol
,poormat
eri
alsuppl
y,st
orage,andhandl
i
ng,andpoori
nfr
ast
ruct
ure
and equi
pmentl
ocat
ion cont
ri
but
e mor
e ofa maj
orext
entt
othe i
nci
dence of
i
nadequat
emanagementofl
ogi
sti
cs.Under
uti
l
izat
ionofconst
ruct
ionv
ehi
cles,
mat
eri
al

40|Page
l
ossduet
odef
ect
sandt
hef
t,andhi
ghl
evelofconst
ruct
ionwast
eonsi
tecoul
d
ev
ent
uat
eduet
opoorconst
ruct
ionl
ogi
sti
cspr
act
ices.Et
hiopi
aal
sodoesnothav
ewel
l
dev
elopedpol
i
cyorgui
del
i
nef
orl
ogi
sti
csmanagementf
ort
heconst
ruct
ionsect
or.
Compani
escoul
dhav
ethei
rownwayofmanagi
ngt
hei
rlogi
sti
cs,f
rom my
exper
ience
mostoft
hewor
kisdonenoti
nsy
stemat
icway
.ButIcoul
dnotf
indanywr
it
ten
document
sorst
udyshowi
nghowconst
ruct
ioncompani
esi
nEt
hiopi
acanhandl
ethei
r
l
ogi
sti
cs.
-
theconst
ruct
ioni
ndust
ryst
akehol
der
’sawar
enessont
heneedandi
mpor
tanceof
l
ogi
sti
cs managementcol
l
abor
ati
on has hel
ped i
nthe const
ruct
ion i
ndust
ryas i
t
i
mpr
oves t
hef
treduct
ion,i
mpr
ove del
i
ver
yand wast
e mi
nimi
zat
ion.I
n addi
ti
on,i
t
i
ncr
easepr
ofi
tabi
l
itybyr
educest
hecostofor
gani
zat
ions.
-
Const
ruct
ioni
sinef
fect
iveandmanypr
obl
emscanbeobser
ved.Anal
ysi
soft
hese
pr
obl
emshasshownt
hatamaj
orpar
toft
hem ar
elogi
sti
cspr
obl
emsor
igi
nat
ingatt
he
i
nter
facesofdi
ff
erentpar
ti
esorf
unct
ions,amongwhi
chl
ateandi
ncor
rectpay
ment
s,
desi
gn/
engi
neer
ingchangesanddi
ff
icul
ti
esi
nfi
ndi
ngoutcl
i
ent
’sneeds,changesof
cl
i
ent
’sr
equi
rement
s,l
ongpr
ocedur
est
odi
scusschangesar
efewoft
hem.

1.Themai
nfact
ort
hatl
eadst
opoorl
ogi
sti
csi
nconst
ruct
ionsect
ors.Poorl
ogi
sti
cs
managementi
mpact
sbui
l
dingconst
ruct
ionsect
ori
nsev
eralway
s,makesconst
ruct
ion
pr
oject
sto be del
ayed,i
ncr
ease const
ruct
ion cost
s,decr
eases t
he ef
fi
ciency of
const
ruct
ionpr
oject
s,makesdi
ff
icul
tyt
ocheckqual
i
tyandquant
it
yofmat
eri
al,i
t
makes congest
ed si
te,mat
eri
aldel
i
ver
y del
ay,mat
eri
aldamage ,unwi
se t
rucks
managementet
c..
2.
Oneoft
hecommonpr
act
icesi
nthegov
ernmentpr
ojectexampl
eli
keAddi
sAbaba
Housi
ngDev
elopmentAgent
,whi
chcanbet
akenasmai
ncausef
orwast
eisbul
k
pur
chasef
ormaj
orconst
ruct
ionmat
eri
alwhi
cht
hepr
ojectof
fi
cei
ssuppl
yi
ngf
ort
he
pr
oject
.Ev
ent
hemai
nideaf
ort
hissy
stem i
sdi
scountandt
ranspor
tat
ioneasi
ness,
the
dr
awbacki
smuch hi
gher
.Communi
cat
ion bet
ween t
he pr
ojectof
fi
ce and br
anch
pr
ojectof
fi
cesi
sunder
est
imat
edconsi
der
inghugeamountofmat
eri
alsandi
temsar
e
athand.Ther
easonsf
ort
hisar
e,t
her
eisnodet
ailgui
del
i
nei
nthecheckl
i
sthowt
ogo
abouti
t,nocont
inuoust
rai
ningf
ort
hest
aff
sinupgr
adi
ngt
hei
rski
l
ls,andi
ntr
oduci
ng

41|Page
t
hem t
othemoder
nsy
stemat
icappr
oachhow t
ohandl
enew st
ock,mat
eri
alathand
anddi
str
ibut
iont
othepr
ojectsi
tes.
3.
Theact
ionst
hatar
eusual
l
ytakent
oav
oidt
hepr
obl
emswi
thmat
eri
aldel
i
ver
iesar
e
goodcoor
dinat
ionbet
weenst
oreandconst
ruct
ionper
sonnelhel
psi
nav
oidi
ngov
er
or
der
ing.I
tis al
so suggest
ed mi
nimi
zi
ng desi
gn changes and good const
ruct
ion
management pr
act
ice.Mor
eov
er,t
hey suggest t
hat hav
ing accur
ate and good
speci
fi
cat
ionsofmat
eri
alscanhav
efav
orabl
eimpactonmat
eri
aldel
i
ver
y.

4.
2.Concl
usi
on

The poorl
ogi
sti
cs managementcompr
omi
ses ef
fi
ciency ofbui
l
ding const
ruct
ion
pr
oject
s.Foref
fi
cientconst
ruct
ionl
ogi
sti
csmanagement
,ani
ntegr
atedpr
ocessi
s
neededt
oensur
ethatt
hepr
oject
stobef
ini
shedont
ime,wi
thi
nthebudgetandwi
thi
n
t
hescopeofcont
ractspeci
fi
cat
ions.Fur
ther
,ef
fi
cientl
ogi
sti
csmanagementi
sacr
uci
al
f
act
ori
nincr
easi
ngl
aborpr
oduct
ivi
tyandal
soef
fect
ivel
ogi
sti
csmanagementsy
stems
wi
l
lal
soassi
stt
hei
ntegr
ati
onandcoor
dinat
ionamongcont
ract
ors,sub-
cont
ract
ors
and suppl
i
ers,whi
ch coul
dincr
ease const
ruct
ion wor
ker
s pr
oduct
ivi
ty.Mostof
const
ruct
ionpr
oject
sar
edel
i
ver
edatl
eastmanyday
sormont
hsorev
enal
ongt
ime
l
ate bey
ond expect
ed compl
eti
on t
ime.Because oft
his,t
he par
tner
s,t
he cl
i
ent
,
cont
ract
ors,t
hesoci
etysuf
fer
sal
ot.Numer
ousr
easonshav
ebeenr
aisedf
orpr
oject
del
ayandcostov
err
un.Forcase,i
nadequat
edesi
gn,cont
ract
or’
scapaci
ty,desi
gn
changeor
der
,cl
i
mat
econdi
ti
on,f
und,et
c.But
,pr
obl
emscausedbypoorl
ogi
sti
cs
managementar
enott
akenasoneoft
hemai
nreasonf
orpr
oject
sdel
ay.Themai
n
obj
ect
iveoft
hispr
ojecti
sini
dent
if
yingt
hemaj
orr
oleofl
ogi
sti
csmanagementi
nthe
ur
banconst
ruct
ioni
ndust
ryandi
tssi
gni
fi
cancei
nconst
ruct
ionpr
oject
sspeci
all
yin
bui
l
ding pr
oject
s. As di
scussed i
n t
he l
i
ter
atur
e r
evi
ew,const
ruct
ion l
ogi
sti
c
t
echnol
ogi
escangi
veamul
ti
tudeofbenef
it
ssuchasbet
tercont
rolofmat
eri
alf
lows
and coor
dinat
ion,as wel
las pr
erequi
sit
es f
ora mor
e col
l
abor
ati
ve const
ruct
ion
env
ironment
.Wi
tht
ermi
nal
-basedconst
ruct
ionl
ogi
sti
ctechnol
ogi
es,t
hemostbenef
it
s
l
i
ewi
thi
ntheconsol
i
dat
ioni
mpactandt
heoppor
tuni
tyofst
ori
ngmat
eri
alsf
orl
atercal
l
-
of
fs,gi
vi
ng super
iorcont
rolofhow and when mat
eri
als ar
e del
i
ver
ed t
o si
te.
Addi
ti
onal
l
ytheut
il
izat
ionofconst
ruct
ionl
ogi
sti
ctechnol
ogi
escanr
educet
henegat
ive

42|Page
i
mpactf
rom const
ruct
ionmat
eri
alf
lowsont
heur
bant
ranspor
tsy
stem t
hrought
he
coor
dinat
ion i
mpact
sthatar
ise.Thi
sis,howev
er,undert
he pr
erequi
sit
ethatt
he
sol
uti
oni
sdesi
gnedwi
tht
hisi
nmi
ndandt
akest
heur
bant
ranspor
tfr
amewor
kset
ti
ng
i
ntoconsi
der
ati
on.Ur
banconst
ruct
ionaf
fect
stheev
ery
dayur
banl
i
febot
hthr
ought
he
const
ruct
ionsi
te,
andt
hemat
eri
alf
lows.Addi
ngconst
ruct
ionl
ogi
sti
ctechnol
ogi
escan
r
educeunnecessar
yimpactonot
herst
akehol
der
sint
heur
bant
ranspor
tsy
stem i
nthat
coor
dinat
edmat
eri
alf
lowscanl
eadt
oar
educt
ioni
ntheamountofmat
eri
aldel
i
ver
y
v
ehi
clest
hatt
rav
elst
osi
te.
Asuccessf
ulpr
ojectr
equi
rescar
efulpl
anni
ng,or
gani
zat
ion
andcont
rolt
hroughoutt
hepr
ojectt
oachi
evet
hecor
rectr
esul
tfort
hecl
i
ent
.Fort
he
cont
ract
or,goodpl
anni
ng,or
gani
zat
ionandcont
rolar
eessent
iali
nor
dert
oachi
evea
t
imel
yandsat
isf
act
oryout
comef
ort
hecl
i
ent
,andt
oensur
eaf
inanci
alpr
ofi
t.To
ensur
ethesuccessf
uli
mpl
ement
ati
onofconst
ruct
ionpr
oject
sther
eshoul
dbean
ef
fect
ivet
eamwor
kbet
weenal
lpar
ti
es.Toensur
epr
opert
eamwor
konconst
ruct
ion
si
tes,manager
sshoul
dbecommi
tt
edt
ochange,wor
ker
sshoul
dbeabl
etowor
kin
t
eams,compani
esshoul
dbemor
ecl
i
ent
sfocused,f
ir
msshoul
dbewi
l
li
ngt
ochange
or
gani
zat
ionalcul
tur
est
hatdonotpr
omot
epar
tner
ingt
omaxi
mizet
eam bui
l
dingand
t
eam member
s shoul
d be empower
ed i
n deci
sion-
maki
ng t
o make par
tner
shi
ps
meani
ngf
ul.

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erence

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