Supply Chain Management

Supply-chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. Management of materials and information flows are key strategic priorities for construction companies. A good performance in these areas can provide them with significant benefits and allow the adding of greater value for clients. The market of the construction company is mostly local and highly volatile. The long durability of the construction “product� contributes to the volatility. The product specification process before the customer order arrives shows different degrees of specifications: engineer to order, modify to order, configure to order, select a variant. A construction company only executes a small part of the project by its own personnel and capacity. This is a way of risk spreading and risk mitigation and to compensate for an unstable market.