Lifting & Specialized Transport - Sourcing & Planning
A well-managed supply chain can provide organizations with a significant competitive advantage by enabling cost efficiency, improving project timelines, ensuring quality and reliability, and mitigating risks and disruptions. Organizations that excel in sourcing, warehousing, logistics, and L&ST can differentiate themselves by offering superior value, meeting client expectations, and achieving operational excellence. An optimized supply chain enhances profitability, strengthens market position, and contributes to long-term success in the industry. - Faiq Ali Khan, MCIPS, Partner - Chartered Buying Management Consulting and Vice Chair – CIPS Dubai Branch
A seamless integration and coordination between warehousing, transportation and logistics operations is essential for optimizing the overall supply chain. It will ensure smooth movement of resources, minimize transportation costs, and facilitate just-in-time deliveries to project sites. Integration also enables real-time visibility and communication, allowing organizations to proactively address any issue or bottleneck that may arise.
Supply Chain Management (SCM) is also an integration of key business processes across the supply chain to create value for customers and stakeholders. It encompasses a wide range of processes and activities such as sourcing, procurement, manufacturing, logistics, warehousing, and distribution, all of which are essential for delivering products or services to customers. While every aspect of SCOR components like Plan, Make, Source, and Deliver are equally important, Sourcing and Logistics play a key role.
Procurement: In construction and infrastructure projects, procurement encompasses sourcing, selecting, and obtaining essential goods, services, and resources. It involves various activities, ranging from identifying reliable suppliers and skillfully negotiating contracts to fostering strong and sustainable supplier relationships. It also oversees timely delivery of crucial materials and equipment, ensuring a seamless flow of resources to support execution of projects.
Logistics: Logistics operations in construction and infrastructure projects involve the management of the physical flow of materials, equipment, and personnel. It includes activities such as transportation management, route optimization, inventory control, customs compliance, and coordination with suppliers, contractors, and project stakeholders.
Warehousing: Warehousing provides storage facilities for materials, equipment, and tools. It involves the efficient management of inventory, organization, and accessibility of items, and coordination with logistics operations to ensure timely availability of resources at project sites.
Lifting & Specialized Transport (L&ST): L&ST refers to the handling, transportation, and installation of heavy and oversized equipment and components required in construction and infrastructure projects. It involves specialized equipment, techniques, and expertise to move and position these items safely and efficiently. L&ST plays a critical role in ensuring the smooth progress of projects, as it directly impacts project timelines, safety, and cost efficiency.
Future trends
The construction and infrastructure supply chain are continuously evolving, driven by technological advancements and industry trends. Some future trends will include:
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By staying abreast of these future trends and embracing advancements in sourcing, warehousing, logistics, and L&ST, organizations can further enhance their competitive differentiation and adapt to the evolving needs of the construction and infrastructure industry.