INDUSTRY COMPETITIVENESS:

A Supply Chain Learning Agenda

Scott Fernie &

Stuart Tennant Thursday 11th. November 2010

Presentation

Research background

Dr. Scott Fernie / Dr Stuart Tennant

Purpose of the meeting

• Our top three: – Debate and Discuss – Collaborative research – Develop common research

direction

Dr. Scott Fernie / Dr Stuart Tennant

Background to the story

Dr. Scott Fernie / Dr Stuart Tennant

• The research is funded by EPSRC • Combines two interdependent ideas: SCM and

Learning/Innovation • Context has changed since writing! • Novel approach to industry collaborators • Three central Questions

RQ1 - What is a construction Supply Chain? RQ2 - What is learning and how do chains

learn and share knowledge RQ3 - What learning processes and practices

provide Competitive Advantage?

The story so far..............

First Year: What is a Construction Supply Chain?

THE FIRST TWELVE MONTHS

Literature

SCM Model

Interviews

Data Gathering

Presentations

Supply Chains are Typically Short

Supply Chain Maturity Varies

INITIAL OBSERVATIONS

Client / Main Contractor Supply Chain

- Client Centric / Suitable for F.A. ‘ repeat’ projects

Main Contractor / Subcontractor Supply Chain

- Main Contractor Centric / Categories of preferred supplier

Two clearly defined parts to the Construction Supply Chain:

THE CONSTRUCTION SUPPLY CHAIN

Client / Main Contractor Main Contractor / Subcontractor

Client Driven

Project Orientation

SC Squad / Exclusivity ?

Intelligent Client

Continuous Workload Stream

Contractor Driven

Organisational Orientation

Preferred Suppliers List

First & Second Tier Interface

No Project Affiliation

1. Client Supply Chain 2. Main Contractor Supply Chain

Feedback

Common Thread:

F.A. & SCM in the CONSTRUCTION INDUSTRY

Positive about the Collaborative Environment

Selection on a Qualitative Based Assessment

No Examples of Litigation (No ‘Claims Culture’)

Supply Chains are not Uniform in their Composition

Cautious of the Economic & Political Environment

MAKE BUY

Open Hybrid Closed Architecture Architecture Architecture Architecture

Traditional Partnering Frameworks

Timescale

Workload

Relations

Structure

Technology

Competition

Learning

Market

Management

MARKET NETWORK CLAN HIERARCHY

SUPPLY CHAIN ARCHITECTURE

Procurement

Permanent

Continuous

Shared

Integrated

Industrialised

Low

High

Bouyant

Strategic

Long

Repetitive

Collaborative

Embedded

Manufacture

Restricted

High

Optimistic

Business

Medium

Repeat

Cooperative

Cordial

Prefabricated

Selected

Moderate

Positive

Operational

Short-Term

One-Off

Adversarial

Arm’s Length

Craft

High

Low

Recession

Opportunistic

Transaction

In-House

S.C.M can’t be all things to all people all of the time

Avenues of Interest:

FUTURE DIRECTION

KPI;s: Innovation and Learning

Financial

Perspective

External

Perspective Internal

Perspective

Innovation &

Learning

Performance Measurement Balanced Scorecard

S.C.M can’t be all things to all people all of the time

Avenues of Interest:

FUTURE DIRECTION

KPI;s: Innovation and Learning

Performance Measurement Balanced Scorecard

Engage with the Client / Main Contractor Supply Chain

Engage with the Main Contractor / Subcontractor & Suppliers Supply Chain

Second Year: How Do Chains Learn & Share Knowledge?

THE NEXT TWELVE MONTHS

Does this resonate with your direction?

What is your direction for SCM?

Is there any potential alignment?

Does this interest you at all?

Two Parts:

One Size won’t fit all:

Next Step : Closer Liaison with Industry Collaborators

Next Theme : Supply Chain Innovation & Learning

CONCLUSION

Adopt a ‘Horses for Courses’ Approach

And a ‘Fit for Purpose’ Relationship

Client Driven Supply Chain

Main Contractor Driven Supply Chain

Thank You

Agenda: 1.0 Welcome and Introductions 2.0 Introduction to the Research Project 3.0 Findings to Date 4.0 Discussion - Supply Chain Architecture - The Changing Context - Research & Industry Supply Chain Objectives 5.0 AOCB 6.0 Closing Remarks 7.0 Date of next meeting