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Construction Logistics today

The following text is written by Martin Rudberg, professor of construction logistics at Linköping University.

Functioning logistics is a prerequisite for cost-efficient construction. Numerous reports and theses have in recent decades demonstrated the effects of poor logistics, which is unfortunately still a reality in the majority of all construction projects. Some examples of these effects is that the supply chain delivery performance up to the construction site are often below 50%, the supplier structure is fragmented, with too many unnecessary annealings to the construction site, the building site logistical layout hampers efficient material handling.

This results in consequences for the construction efficacy which also has been demonstrated in a number of reports and theses - the construction worker's value creating time are often below 25% of total working hours, material costs spiraling, and the total construction cost increases relatively more than other industries cost.

As a result of this, there are studies that show that construction costs in general could be reduced by about 25-30%. Research also shows that a large part of today's inefficiency and relatively high construction costs can be attributed to poor logistics in the construction sector, and many are convinced that a large part of the cost reduction can be achieved by creating conditions for better construction logistics.

Construction Logistics covers the planning, organization, implementation, coordination and control of material flow from raw material until the material is built into the finished building. Efficient logistics can be retrieved from other industries for building materials to the construction site, but compared to other industries there are crucial differences in contracts, notice and the general requirements for the transport and the fact that supply chains in the construction logistics are mostly temporary, unique for every new construction site.

At the construction site, the differences are greater. Unloading, incoming inspection and storage require custom solutions that depend on the building site's geographical location and appearance. Logistics concerning the building must also be complemented by the logistics of resources such as subcontractors machines and scaffolding. Even the return flows of waste and scrap materials must be considered.

The construction industry is of course no stranger to the above problems and a number of approaches to improve logistics with the aim of streamlining the construction is currently underway in many different market segments. Developers and clients requires more efficient construction logistics in their procurement documents, contractors tests various logistics concepts and business models, more and more logistics providers (so-called third party logistics) has gone into the construction industry and the building materials trade currently offers a growing selection of different construction suited logistics services.

There are a few studies that evaluate the effects of this, but no major study that shines through the design, implementation and impact of the greater use of purchased logistics services to streamline construction logistics and construction sites. Servistiks and Wiklund's future involvement as third party logistics with overall responsibility for a logistics terminal and material flows in the building of the Stockholm Royal Seaport is a great opportunity to conduct such a study.

 
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