Introduction
In numerical terms Small and Medium-sized Enterprises (SMEs) make up
the bulk of the construction industry and are responsible for a significant
proportion of both its employment and output. However, many SMEs are concerned
that, because of their relatively small unit size and lack of individual
economic muscle, their relevance to the new generation of integrated supply
chains might be increasingly marginal. With the trend in construction
procurement being towards large framework contracts and standing supply
chains, there is a growing fear amongst smaller players that business
opportunities for SMEs will diminish rapidly.
In fact, SMEs do have some significant advantages over larger organisations
when it comes to working as part of an integrated supply chain. They are
frequently better-equipped to work in a collaborative way since their
flexibility permits faster uptake, greater commitment and a more innovative
approach. SMEs are able to rapidly adapt their business processes and
their shorter lines of communication mean they can be more customer-focused
and responsive.
This module looks at how the SME sector can optimise these attributes
and earn a valued place as part of fully integrated supply chains. It
sets out a number of key areas where organisations can take action to
enter, develop and maintain a position as a key member of a properly
integrated supply chain and so ensure that they continue to compete
successfully for business.
The rewards
There are tremendous benefits of being part of an integrated supply
chain, namely improved profitability, greater continuity of work and
a more stable operating environment. There is also the added synergy,
motivational and continuous improvement benefits that can be derived
from close working relationships with adjacent partners in the supply
chain. And, through earlier involvement of all elements of the supply
chain and more thorough pre-start planning, it is expected that there
will be considerable additional benefits in terms of improved health
and safety performance within the industry. It is vital that SME concerns
are not marginalised or overlooked as the integration process gathers
momentum. Potentially, it is fair to say that SMEs have at least as
much to gain as anyone else through the adoption of a more interdependent,
collaborative outlook.
Relevance
All SME organisations operating within a construction supply chain. Also
of interest to larger organisations that source or supply through SMEs.
Integrated supply chains are made up of organisations that work together
on a systematic basis to continuously improve the way that they deliver
projects and services. An SME can be situated at any point on the construction
supply continuum and might be a manufacturer, intermediary, contractor,
fabricator, designer, client or any other value-adding organisation.
Using this Toolkit module
Unlike many of the other sections in this Toolkit, the SME module is
aimed at construction organisations of all types, the common denominator
being modest or moderate scale of operation. For the purpose of this
Toolkit 'small' enterprises are defined as organisations with an annual
turnover of less than £5 million, while 'medium' sized organisations
have an annual turnover of between £5 and £25 million. For
this reason the module is designed around individual sections dealing
with each element of the supply chain from manufacturer through to client.
For each element there is a section dealing with what a company needs
to know about working as part of an integrated supply chain along with
information on how their customers and suppliers can work with the company
to their mutual benefit.
As each organisation is, by definition, both a customer and a supplier
it will be worthwhile reading the section dealing with your type of
organisation together with those relating to your neighbouring partners.
This process of organisations offering mutual support is one of the
defining characteristics of working within an integrated supply chain.
Each key step in the development of a partnering relationship between
the various supply chain parties is identified in the 'Process' column.
The 'Culture and Activities' column then provides a summary of the necessary
ethos and actions required for their implementation. The adjacent 'Tools
and Techniques' column provides recommendations, Toolkit cross-references
and links to external supporting information.
Note: Users of this Toolkit module are encouraged to explore the other
sections of this Toolkit to determine their position in the overall
construction supply spectrum, to better understand the benefits and
workings of the integration concept and to gain an appreciation of the
need for collective supply chain focus to ensure a satisfactory end
result.
5.1 General principles
|
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.1.1
|
|
Committing to change
|
|
The decision to pursue business within integrated supply chains
is more than just a simple commercial decision and it involves a
greater leap of faith and change of direction for some organisations
than others. The single biggest adjustment for most concerns relates
to the fundamental change in attitude that must accompany a move
into fully partnered relationships. It is not easy for an entire
company, however small, to make a wholesale commitment to collaborative
working. 'Them and us' attitudes must be eliminated and replaced
with an atmosphere of mutual trust and communal purpose.
This involves:
- understanding customer supplier relationships, both internal
and external
-
having a culture supporting trust, teamwork, communication
and a win/win attitude.
-
giving and receiving feedback.
|
|
The Construction Manufacturers Partnering Association (COMPASS)
provides a framework within which the necessary cultural attitudes
can be developed.
See the COMPASS website for details.
See The Partnering Toolkit available from BSRIA.
|
5.1.2
|
|
Core principles
|
|
-
Mutual trust amongst all supply chain participants.
-
Genuine commitment from top management of the partnering organisations.
-
Communicating the vision – sell the idea internally and externally.
-
Comprehension and dedication to integrated working by all
parties.
-
A clearly defined strategy that sets out the aims, objectives
and long-term goals.
-
Clear, measurable, value-for-money benefits for all parties.
-
Agreed, measurable and realistic performance indicators.
-
Formal and informal communication between all parties.
-
Creation of an environment of continuous learning and improvement.
-
Suitable dispute resolution systems.
|
|
See Learning by Doing workshop on Developing an Integrated Supply
chain via the CBP website.
|
5.1.3
|
|
Business processes
|
|
In addition, organisations need to have a thorough understanding
of their business processes and how these interact with those of
their customers and suppliers.
There are a number of methods of mapping and measuring processes.
Gaining an understanding of processes is an important starting
point.
Gaining an understanding of all aspects of a business' performance
is a very useful starting point, both for the organisation itself
and for companies wishing to develop long-term supply chain relationships
with it.
|
|
|
5.1.4
|
|
Benchmarking supplier performance
|
|
Internal and external benchmarking is a means of comparing a company's
processes between different departments or with other organisations.
Benchmarking provides a means of monitoring improvements against
best practice elsewhere and enables targets for improvement to
be set. The strengths and weaknesses that are identified allow
a company to focus its attention on key areas of performance improvement.
|
|
A benchmarking tool called Benchmark Index allows an organisation
to compare its performance against that of other similar companies.
See the Benchmark
Index website for more information.
|
|
|
5.1.5
|
|
Developing your capability as supply chain partner
|
|
This toolkit will provide many ideas on how to develop your capability
to work effectively as part of an integrated supply chain. A specialist
consultant from the construction sector can provide customised advise
and support that may allow your organisation to speed up the development
process.
|
|
Construction Best Practice Advisers can be reached via the CBP
website.
|
5.1.6
|
|
What customers should look for when selecting their suppliers
|
|
The criteria used by customers when selecting suppliers should
inevitably focus on results such as cost, reliability, quality and
delivery performance. However, because of the need to develop long-term
relationships, process issues and workforce development issues are
equally important. These issues determine the long-term capability
of the suppliers.
Process issues will deal with such matters as an organisation's
management of risk and value and its attitude towards innovation,
health and safety, training, logistics and supplier development.
Workforce issues will be in terms of training, mentoring and adoption
of a recognised staff development standard such as Investors in
People.
|
|
See Investors
in People website.
|
5.1.7
|
|
Formalise your partnering relationships
|
|
A form of 'Partnering Charter' should be put in place between
the various parties. Depending on circumstances, this may range
from a non-binding 'statement of accord' to a full binding contract,
but in most cases it is preferable to keep this as an uncomplicated,
non-legal, document. The Partnering Charter is signed by all parties
and represents a symbolic, yet visible, commitment to mutual teamwork
and the Subsidiary to the Partnering Charter must be a dispute
resolution procedure. One of the prime benefits of partnering
stems from its non-adversarial nature. However, even in the best-constituted
partnering relationships, disagreements and misunderstandings
will arise from time to time and it is prudent to have contingencies
in place.
|
|
Refer to Examples of Partner
Charter
for examples of a simple partnering charter summary suitable
for display purposes.
Tip: Be aware of the legal and contractual implications
of a partnering agreement. It would be prudent to take legal advice
when creating a Partnering Charter and before entering into any
formal partnering relationships.
|
|
|
5.2 Manufacturers and fabricators
|
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.2.1
|
|
The role of the manufacturer and fabricator in the supply chain
|
|
Construction materials and component manufacturers and fabricators
need to be able to respond rapidly to customer requirements while
finding ways of reducing cost. Rapid response can be defined in
terms of both reducing lead times and the development of new products
and services.
Moves to combine rapid response with lower cost is being achieved
through the adoption of 'lean' production and quick response manufacturing
systems. Lean production looks at ways of increasing the flow of
work through the system by taking out sources of delays and waste.
Quality is now being achieved by eliminating sources of defects
rather than through inspection. Mistake-proofing is a method of
designing methods of production which eliminate the possibility
of creating defective items.
|
|
See Module 2: Manufacturer/subcontractor
partnering arrangements
See Construction
management – new directions by D McGeorge & A
Palmer, ISBN 0-632-06042-5.
|
5.2.2
|
|
Support from customers
|
|
Customers need to become totally familiar with the products and
services that are offered by the manufacturer. This understanding
will enable customers to make the clear decisions as to the best
application of the product or service, and will also help suppliers
to assist with product development.
|
|
|
5.2.3
|
|
Support from suppliers
|
|
Those companies supplying manufacturers and fabricators can support
them in a number of ways.
The first is through responsiveness in terms of their supply of
materials and components. The use of just-in-time systems of delivery
can ensure that inventories for the manufacturer are kept at a
minimum and in turn allows the manufacturer to be responsive to
their customers. However, risks to production from non-delivery
of components must also be assessed.
The second area is with market intelligence, providing the manufacturer
with new products or knowledge that will give them a competitive
advantage.
|
|
|
|
|
5.3 Intermediaries
|
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.3.1
|
|
The role of the intermediary in the supply chain logistics
|
|
Managing the logistics of procurement and site delivery will be
a key role of intermediaries such as distributors and merchants
in an integrated supply chain. Logistics has been defined as the
process used to manage the flow of goods and materials,
equipment, services and people through the supply chain.
Examples of the use of logistics to increase value within the supply
chain include:
-
Synchronising deliveries with site activities through the
use of just-in-time scheduling and electronic trading processes.
-
Operating an intermediary or supplier-managed material replenishment
system on site, so removing the need for trade specialists
or contractors to manage materials stocks.
-
Assembling materials into kits so that all materials needed
to perform a particular aspect of work are grouped together
and delivered. Examples would be floor joists kitted by plot,
or components for an M&E installation to a particular unit
or room.
-
Managing the delivery of materials to site in time-slots
to allow more efficient programming of material handling equipment.
-
Delivery of materials or components to the precise location
where they are to be incorporated into the building or structure,
referred to as the point of use. The idea behind this approach
is to ensure that scarce skilled labour is not spending time
searching for and moving materials; instead the materials are
brought directly to them.
|
|
see Module 3: Intermediary
integration
see Construction
Best Practice Fact Sheet on Logistics.
For
intermediaries supplying the M&E sector refer to the Building
Services Trading Community via BSRIA.
|
5.3.2
|
|
Support from customers and suppliers
|
|
For intermediaries to provide the logistical services that have
been highlighted above there needs to be a significant change in
the way that relationships between customers and the distributors
and suppliers has traditionally been managed.
Intermediaries can take on a leading role in terms of procurement
of materials. This can include scheduling material requirements
in terms of quantities against programme and liaising with sites
to arrange delivery. In some situations intermediaries can also
be used to source and procure the entire range of materials and
manage the entire logistics function.
This wider role for the intermediaries than has traditionally
been the case requires a high level of co-operation and integration
with the intermediary's own supply chain.
One of the features often associated with intermediaries is the
high volume of transactions and the associated paper-work involved
with material requisitions and invoice payments. Reasonably priced
electronic/web ordering and payment systems are now sufficiently
well developed to be a viable option for SME companies from both
the distributor/supplier side and the specialist and contractor
side.
|
|
For
Intermediaries supplying the M&E sector refer to the Building
Services Trading Community via BSRIA.
|
Back to 'At a glance'
|
5.4 Specialist Trade Contractors (STCs) |
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.4.1
|
|
The role of the trade specialist in the supply chain
|
|
The role of the Specialist Trade Contractor (STC) is to provide
and manage a skilled and competent workforce to undertake construction
activities.
The nature of construction activities means that the trade specialists
are dependent on the performance of other trade specialists in
terms of carrying out tasks in preparation for the works to be
undertaken. Therefore, for projects to be carried out efficiently,
STCs need to be able to respond to the main contractor's programme
by providing a reliable workforce capable of undertaking the agreed
tasks. At the same time, they must collaborate with other specialist
suppliers and contractors to resolve interface issues and comply
with the contract programme.
In an integrated supply chain, STCs will be expected to develop
new methods of working in response to changes in technology or
where circumstances require it. Multi-skilling may also be considered
advantageous as it can assist in creating more reliable and efficient
working.
One of the key areas where STCs can contribute is in relation to
detailed design development. STCs usually possess considerable knowledge
on issues of buildability and their contribution can have a significant
effect on cost, and operability and maintainability of the finished
project.
|
|
See Module 2: Manufacturer/subcontractor
integration arrangements. Tip: STCs can usefully promote their supply chain expertise to
their potential customers by arranging events on supply chain integration
through their trade organisations or in association with representative
reform bodies. |
5.4.2
|
|
Support from customers
|
|
When selecting an STC to form part of an integrated supply chain,
consideration must be given to their level of genuine commitment
to partnering principles as well as to factors such as their technical
competence, quality control standards, skills levels, health and
safety record and financial stability.
By working with an effective integrated supply chain the cost/quality
ratio, i.e. value for the client, can be significantly better
than that which might be achieved by traditional tendering methods.
In all supply chain situations, continuity of work is an important
issue in that it allows close relationships and expertise to develop
between the members. Therefore, working with a relatively small
number of STCs will help to ensure that there is a reasonable supply
of work available. This does require the STC to commit to making
resources available when required.
A lead contractor may need to make the business case to a client
in a negotiated situation for using a particular STC which forms
part of the contractor's integrated supply chain structure.
|
|
For guidance on partner selection see Resources.
Tip: Get close to your favourite lead contractor. Many
of the country's foremost lead contractors possess a great deal
of knowledge and expertise that they are prepared to pass on to
their established supply chain partners. A lead contractor may
consider developing a mentoring relationship with key supply chain
partners.
|
5.4.3
|
|
Support from suppliers
|
|
Distributors and suppliers can support trade specialists by providing
them with assistance on the adoption of new products and systems.
They can also assist in terms of providing effective logistical
support. Please refer to section on Distributors and Suppliers.
|
|
See Module 3: Intermediary
integration
|
Back to 'At a glance'
|
5.5. Lead Contractor |
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.5.1
|
|
The role of the Lead Contractor in the supply chain
|
|
The role of lead (main) contractor is essentially one of co-ordination.
This makes the contractor's role pivotal in an integrated supply
chain. An SME lead contractor may also directly employ a significant
number of skilled operatives, so many of the issues discussed
in the section dealing with STCs will be relevant to these lead
contractors.
Much of the work in assembling, developing and maintaining an
integrated supply chain will be down to the lead contractor. This
will cover all elements from manufacturers, distributors and materials
suppliers, trade specialists and designers.
The first issue is the selection of preferred partners. For the
assembly of strategic supply chains it is necessary to conduct the
selection of partners on the basis of rigorous pre-qualification
and selection procedures. It is obviously of vital importance that
any long-term commercial relationship is based on objective selection
criteria and quality assessments to ensure that the necessary degree
of competitive pressure and quality rigour is maintained throughout
the selection process.
Due to the need to need for efficiency and the considerable investment
and effort required to develop effective standing relationships,
this exercise will usually result in a considerable reduction
in the number of supply chain parties. However, the supply chain
integration process will often open up doors to other organisations
that can offer the requisite skills and temperament to succeed
in this new collaborative trading environment.
|
|
See Module 1: Customer/supplier
procurement integration
See Module 2: Manufacturer/subcontractor partnering
See Resources
|
| |
|
|
|
The process of developing and maintaining an integrated supply
chain then needs to take into account:
-
Reducing costs of carrying out business, known as transactional
costs. These include tendering, invoices, non-standard forms
of contracts and any other aspects of doing business which adds
cost but does not contribute significant value.
-
Standardising methods of working so that repetitive processes
become familiar and quality can be improved. These can include
design details for common elements or standardised methods
of carrying out certain construction activities.
-
Developing the capability of every business in the supply
chain. The supply chain can become a great source of knowledge
and ideas for performance improvement. Particularly where its
members are SMEs, there can be considerable advantages in companies
sharing the cost of training and staff development.
-
Planning, scheduling and controlling construction projects
so that site activities become increasingly stable with more
predictable outcomes.
|
|
See Module 1: Customer/supplier
procurement integration.
Tip: Lead contractors may find running regular business
workshops with their design teams, STCs and manufacturers a useful
way of developing closer working relationships.
To develop expertise on supply chain and other best practice
issues, contractors may wish to join the Best Practice Managers
Network being set up by Construction Best Practice
www.cbpp.co.uk |
5.5.2
|
|
Support from customers
|
|
Providing continuity of work is probably the most important assistance
that a client can provide to a lead contractor. This allows stability
to be created in the supply chain which is a necessary condition
for continuous improvement. The other main area of assistance
is in ensuring that payments are made according to the agreed
time schedules.
|
|
|
5.5.3
|
|
Support from suppliers
|
|
Manufacturers and Intermediaries can support Lead Contractors through
appraising them of new materials and systems, and also in assisting
with effective logistical arrangements for the supply of materials.
|
|
See Module 3: Intermediary
Integration.
|
Back to 'At a glance'
|
5.6 The designer |
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.6.1
|
|
The role of the designer in the supply chain
|
|
Recently there has been a realisation that design activity is
undertaken right throughout the supply chain, with the best solutions
often being delivered when all the design capability is assembled/utilised
in an integrated fashion. However, the formal design function
is normally carried out by architects, building services engineers,
structural and civil engineers, and by STCs who have design responsibility.
The various forms of conventional procurement under different
forms of contract involve designers in different ways but in the
general context of a fully integrated construction scenario, the
designer will invariably be part of the core group within an Integrated
Project Team. In this capacity he will have a close interaction
with the other core group members and their individual supply
chains who all bring different skills and disciplines to the process.
|
|
For information and guidance on the role of designers in partnered
projects go to the Integrated
Project Team ToolKit.
|
5.6.1.1
|
|
Design development
|
|
In other cases the architect might be a permanent member of a
discrete supply chain itself, especially where there is a large
up-front or very specialist design/detailing load relating to
a proprietary system. This is where a designer has an ongoing,
i.e. non-project-specific, relationship with, say, a manufacturer
and/or STC as part of a single-source procurement package. In
either case, designers that the architect works in close
proximity with to the other construction parties in performing
two fundamental roles:
The first role of the designer is to understand the needs of the
client, and pull together the expertise of the supply chain to
develop a design solution that will provide a building that satisfies
the client's needs in terms of functionality, operability, maintainability
and sustainability. The designer will need to make initial proposals
that can then be developed and commented on by others in the team.
This technical and creative process of design development is essentially
iterative and, in the case of an Integrated Project Team following
an accelerated or fast track programme, this design process will
be largely concurrent with construction on site. The success of
this process will largely be dependent on the skill of the designer
in managing the flow of information and seeking out and acting
on ideas from the team.
The second role of the designer is to manage the flow of design
information so as to ensure that drawings and schedules are produced
in a timely fashion, and that designs are clear, consistent and
buildable.
The resolution of details and the timely production of design
information and drawings are clear examples of design issues that
demand a close working involvement between the different parties
to a construction project. By dint of this role, the designer
occupies a central position in an integrated project's core team
and consequently exerts a great deal of influence on the success,
or otherwise, of the partnered approach.
|
|
For further guidance on the role of architects in project partnering
integrated supply go to the Constructive Change pages in the Debate
section at www.architecture.com.
For guidance for small practice
architects see the RIBA website. |
5.6.1.2
|
|
Production of design information
|
|
A clear timetable of information requirements is a starting point.
But this must be followed up by agreement as to how this information
can be generated within the time frame. As design development is
both an iterative and collaborative process, an understanding of
this process by all parties will allow it to be managed more effectively.
Clarity and consistency of design information requires standardisation
of drawings, schedules and design detailing. This in turn requires
investment from both the designer and the rest of the team in agreeing
these standard methods and details. The level of investment required
is generally only economic when there is continuity of work.
Buildability requires a detailed knowledge of both the construction
process and the specification of the building materials and components.
This in turn requires close collaboration between all the integrated
supply chain members.
|
|
|
5.6.2
|
|
Support from customers
|
|
The best assistance that a customer, whether a client or contractor,
can give to a designer takes the form of a comprehensive, well-thought-out
brief. Time, care and money spent by the customer in determining
the brief will be repaid many times over when the project gets
under way. Very often clients have not explored their real business
needs fully before commissioning a design and the 'value criteria'
against which the project will be judged is not clearly defined.
This means that the design process will be flawed. It will result
in either an unsatisfied client at the end of the project or considerable
delay and disruption during the design process as client requirements
filter through. It is for these reasons that the ongoing inclusion
of clients as part of an Integrated Project Team can pay handsome
dividends in terms of cost control, time to build and functional
outcome.
Lead contractors and STCs are key customers of designers in their
capacity as users of their design information. This is regardless
of what form of contract the lead contractor or STC happens to
be working under.
To make these customer/supplier relationships effective there
has to be a considerable investment of time and resources into
understanding each party's processes and requirements. This may
require a level of investment that can only be justified in long-term
strategic partnering relationships or larger projects. However,
clients with repeat business will benefit greatly from using integrated
supply chains offering that offer established solutions, concerted
working, consistent performance and the benefits of continuously
learning and improving culture.
|
|
See the Integrated
Project Team (IPT) section of this Toolkit for further details
on Integrated Project Teams.
|
5.6.3
|
|
Support from suppliers
|
|
Suppliers are any organisations that supply information to designers.
Clients in this respect are both customers and suppliers to a designer.
Their role has been dealt with above.
Manufacturers and STCs having design responsibility or input are
the key suppliers to designers.
For the manufacturer they need to provide designers with information
concerning the products/systems they provide and how they can
be used/detailed within a project. This issue here is not that
manufacturers are reluctant to provide this information but rather
that the conventional channels through which manufacturers communicate
this information are not always effective.
This issue is due to both the large volume of information and the
widespread perception (often justified) of the manufacturer's representative
as a sales 'rep' only interested in selling product. An integrated
procurement solution will normally require the manufacturer to work
with the lead designer in a prime technical support role as part
of the design remit of the Integrated Project Team (IPT).
|
|
Designers may consider joining a dedicated reform group such as
the Construction Manufacturers Partnering Association (COMPASS)
which provides a forum for the exchange of information, ideas and
contacts amongst progressive supply chain players. See the COMPASS website
for further details.
|
Back to 'At a glance'
|
5.7 The client |
Step
|
|
Process
|
|
Culture and activities
|
|
Tools and techniques
|
5.7.1
|
|
The role of the client in the supply chain
|
|
The client plays an important role in establishing the working
environment in which the supply chain operates.
Through exercising strong leadership the client can motivate a
supply chain to deliver exceptional value. This would be through
setting out clearly its requirements, encouraging innovative thinking
and problem solving to develop best-value solutions and provide
incentivisation through shared savings.
|
|
For a client guide publication on how to use partnering for a
construction project go to the CIOB website.
|
|
|
Client selection or development of supply chains
|
|
Clients can both seek out established supply chains and support
their further development or they can assemble and develop their
own integrated supply chains.
For an occasional client the most practical route would be to
identify an existing supply chain. An independent client adviser
would be able to assist in the selection process.
The selection process should be aimed at identifying a supply
chain that has the closest match in terms of its capabilities
of delivering the desired outcome. Selection on price, preliminaries,
overheads and profit or any other cost-based indicator is unlikely
to successfully identify the most capable supply chain for delivering
a best value solution.
Instead, qualitative indicators such a previous experience, approach
to managing team relationships, efficiency of processes and operations,
openness and honesty, and testimonies from previous clients and
existing supply chain members provide the most reliable information
on which to base a selection decision.
Regular (repeat) clients may seek to develop their own supply
chain with companies that have demonstrated a reliable track record
of performance. To be successful a company will also have to demonstrate
an ability to work in a collaborative manner.
Again strong client leadership will be necessary to develop an
effective supply chain. This will be in terms of supporting the
supply team members in their individual development as well as the
development of the chain itself.
|
|
|
5.7.2
|
|
Support from customers
|
|
Client organisations are often made up of networks of departments,
groups and individuals who themselves act as customers of the
supply chain client. These internal client customers may be representatives
of end users or departments, management boards, finance departments,
etc.
Their support is often crucial in maintaining a commitment to
working with integrated supply chains. It is the responsibility
of the client to educate and involve their internal customers
in the supply chain development process to ensure their continued
support.
|
|
|
5.7.3
|
|
Support from suppliers
|
|
Suppliers are any organisation working within a supply chain. They
all play a role in adding value to the client.
These suppliers must continuously seek out improved ways of delivering
value to their clients through understanding their needs and continually
improving their procedures and processes to remove unnecessary
cost and add value. This is a fundamental obligation, and natural
outcome, of working within an integrated supply chain.
A truly integrated supply chain will invariably deliver greater
value at lower cost than can be achieved in the market through
a traditionally tendered procurement process. Combined with its
dedication to continuous improvement, this means that an integrated
supply chain offers clients a truly self-sustaining route to high-quality,
best-value construction outcomes.
|
|
|
|
|
|
