Construction Supply Chains

Presented by

Prof. Ashwin Mahalingam

Indian Institute of Technology, Madras
 What is a Supply Chain?

• “. . . network of organizations that are involved, through upstream and downstream

linkages, in the different processes and activities that produce value in the form of
products and services in the hands of the ultimate consumer”(Christopher 2005).

• Christopher, M. (2005) Logistics and supply chain management, creating value-adding networks, Financial Times
Prentice Hall, Harlow, 3rd ed.
 A simpler view

• “a supply chain consists of two or more legally separated organizations, being linked by
material, information and financial flows.” (Stadtler, 2008)

• Stadtler, H. (2008). Supply chain management—an overview. Supply chain management and advanced planning, 9-
36.
 Supply Chains

Stadtler, H. (2008). Supply chain management—an overview. Supply chain management and advanced planning,
9-36.
Agricultural Supply Chains
Manufacturing Supply Chains
Construction Supply Chains
Challenge 1: Supply and Demand
 Challenge 2: Vendor Management

• Ensure Timely Delivery

• Ensure Quality
• Diversification
• Partnerships
• Integration
Challenge 3: Manufacturing Efficiency
Challenge 4: Logistics Management
 Challenge 5: Post Sales Circularity

• Returning Material

• Re-using Material
 C&D Waste Supply Chain

Waste Generation
(Demolition /
Construction)

Collection points /
Landfill

Recycling Building
plant materials
 Problems with Immature Supply Chains

• Limited Suppliers (Monopoly)

• Lack of trained workers
• Low Trust in the output (low
demand)
• No economies of scale
 The economics of C&D supply chains

• Capital Costs
• Raw Material Supply Costs
• Operating Expenses
• Scale
• Logistics Costs
• Demand
 Logistics
Challenges

• Widely distributed points of C&D

waste generation (2013 data shown in
the Chennai’s map (on the right)
• Costs of Collection (2015 data)
ü 300 Rs./tonne – from transfer
stations/designated points to
landfills/recycling facilities
ü Primary transportation from sites
to designated points can
sometimes be as high as 700
Rs./tonne (mini trucks / autos
are used)
 Logistics Challenges

Perungudi Dump Yard, Chennai, India

 C&D Waste Recycling Plant

Shajahan (2016)- “Presentation on C&D waste recycling in Delhi”, C&D waste recycling workshop at IIT Madras, 21 June 2016.
Innovation and Fragmented Supply Chains

(Taylor, J. E. (2006). Three perspectives on innovation in interorganizational networks: Systemic innovation,

boundary object change, and the alignment of innovations and networks. Stanford university.
Supply Chain Management
Thank You