h the finalization of eligibility criteria for enlisting the potential members. Thirdly, an information sheet about the rationale behind the formation of a supply chain needs to be submitted to the management for better understanding of the strategy in proper perspective. It is in this backdrop, the proposal for building up a supply chain management system and selection of members for partnering discusses the strategy in detail. Procurement strategy Clients in the field of construction are more demanding and the contractors have to keep up to the schedule considering the cost overruns and penalties involved in case of delays. Value for money, timely delivery and quality plays an important role in formulating procurement policies. Therefore, while short-listing the suppliers as members of the supply chain management for partnering, their track record for integrity, timely delivery and dependability is given more weight for consideration. The flexibility of the suppliers, in the face of change in requirements by the customers, needs to be given importance as the contractor cannot keep the goods in their inventory. It is important to ensure that the procurement schedule is finalized after making assessment of the current operations of the projects, the clients’ current priorities, documentation formalities and weaknesses noticed in the current schedule of operations. Matching the procurement program with the progress of the project demands care, tact and good business relationship on the part of the contractor with the client as well as the suppliers, because the projects are mostly one-off designs with complex interaction among various partners. Bower (2003) states, “It has been widely reported that extreme fragmentation is a particular trait of the construction industry…observed in the diversity of professions and trades in construction.” (p.10) In view of the uncertainties involved due to non-repetitive and non-standard nature of the projects, diverting the materials procured for one site to another site could be planned at the time of taking procurement decisions. Benefits of teamwork and partnering Outsourcing: Benefits of team work and partnering accrues through outsourcing. Conceptually, “Cost of using something in a particular venture is the benefit foregone (or opportunity lost) by not using it in its best alternative use”. (Lipsey 1995, p. 259) If the company decides to use its capital effectively based on the opportunity cost by means of sub-contract or outsourcing, it increases its profitability and scale of operation. Selection of the right members for partnering depends upon several criteria such as financial strength, infrastructural facilities, storage facilities, reputation for timely delivery and dependability in view of the continuing business relationship envisaged in the process. Sub-contracting is also preferred in view of its cost advantage to the contractor. Ulku, Toktay & Yucesan (2007) “The supply chain may benefit from the separation of risk ownership and production capability. One of the primary drivers of
Supply Chain Management Introduction In building services, a small/medium sized company that normally tender for work in the ?0.5m to ?1.5m region, planning to begin tendering for work in the ?1-10m bracket, has to revamp its strategies in line with the scale of operation…
Better collaboration in turn means greater communication. When firms communicate effectively (even in diverse geographical parts with different cultural backgrounds) and given that these firms are customer –focused, then knowledge on the customer value is created.
Now the business firms are not competing individually in the markets rather they are the part and parcel of different supply chain links. The only way in order to succeed in the market is that the business managers must have the ability to link different business networks or supply chain links in an effective and efficient way.
Organizations have come up with various innovative methods in all these process, which not only provide good SCM but also add value to their businesses as well as the environment including their suppliers, society as well as economy. Supply chain strategy is critical to its sustainability.
By 1990s, it became one of the most well-liked management term (Hugos, 2006). A supply chain can be seen as the alignment of three or more firms that are directly linked by the downstream as well as upstream flows of goods, services, information and finances from a particular source to the customers.
A good supply chain allows the organization to reduce the cost for its products without compromising on the quality and the relationship they maintain with their suppliers. To overcome this challenge, organizations have moved on to outsource their suppliers to developing countries just as China, Brazil, and Poland etc.
Green Supply Chain Management.
Although the concept of green supply chain is one of the most argued topics among industrial experts and research scholars but surprisingly very few researchers have tried to explore the topic seriously. To understand the core concepts of green supply chain management, one has to define supply chain management.
To bring the main actors in the market together, for example, suppliers, manufactures, and stores are put together to simplify the production of commodities being produced, and then circulated at the right time. The captions are going to capture the
It brings integration of various processes such as production operations, buying goods and services, transportation and distribution. A successful supply chain management programs ensures these processes are integrated and coordinated into a process that is seamless
The micro-economic approach in regard to market logistics and strategic plans of an organization is extensively discussed. The effective warehouse management and transport arrangements are basic market logistic constituents (Jespersen & Skjøtt-Larsen, 2005). It is
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