Poor logistics cost industry

Poor logistics is costing the construction industry at least £3 billion each year, according to a new report published by the Strategic Forum for Construction. Improving construction logistics highlights issues such as poor planning and delegation of roles, and secondary working of products on site, citing them as cost inflating factors.

The report, which was prepared for the Strategic Forum by the Construction Products Association, also highlights the benefits that good logistics can bring to projects and the sector as a whole. It concludes that a reduction in transport movement, less money tied up in stock, less waste and the more efficient use of skilled tradespeople will lower the cost of projects, reduce construction time, improve quality, reduce risks to health and safety and generally improve the image of the industry.

Several reasons that have prevented the industry from taking steps to improve logistics are identified. These include a lack of incentive as it is difficult to determine who will actually reap the benefits of change. Also, construction projects are each seen as a one-off, with teams brought together for a short period then disbanded. This makes it difficult to build up the good long-term relationships and systems that benefit the manufacturing and retail environments.

An action plan is set out to overcome these and other obstacles preventing improvements. The plan focuses on the benefits of integrated project teams and supply chains and increased use of IT. It sets a specific role for each part of the industry in helping to improve logistics.

Chair of the Strategic Forum for Construction, Peter Rogers, said: “Construction has been slower than other industries to realise the benefits that the application of good logistics can provide. The good news is that we do not have to make large changes in order to obtain considerable benefit.

“This action plan provides an excellent framework for the whole industry to respond to the challenge and Constructing Excellence will be working with the industry to follow up the various recommendations in the report.”