Achieving competitive advantage through supply chain optimisation

The construction sector is going through a turbulent time. The credit crunch is making a recession more likely; this is affecting consumer spending, leading to a reduction in house completions; the government’s spending review is likely to reduce capital investment; and, rising material and fuel prices together with tougher environmental standards are leading to cost escalation.

These trends are affecting not only construction companies but also their suppliers and will encourage the development of new business models. So what lessons can all those involved in construction learn from other sectors.

Since the 1980’s, retail companies used the supply chain to lower the cost of supply, improve service to customers and reduce working capital. Moreover they have acknowledged that integrating the whole supply chain has been the single most effective way of gaining competitive advantage by disadvantaging less agile competitors.

Similarly, in industrial sectors such as automotive, manufacturers have met customer demands for a wider choice and faster delivery by taking a holistic approach to their supply chain.