Interserve PSL

Introduction
This sub-project focused on developing integrated construction supply chains. The work was undertaken between January 2004 and December 2005 and involved the support of Interserve Project Services and their framework supply chain partners. It builds upon the findings of Interserve's 'Integrating the Supply Chain - Project Report', September 2004, sponsored by CITB ConstructionSkills.

Aim
The aim of Interserve's project was to improve framework supply chains at the second and third tier levels. The specific objectives were that by the end of the project the team should have:

• Worked with the NHS Procure 21 Framework (including two project supply chains), and the BT Telereal Framework Team.
• Identified supply chain issues and improvement opportunities at second and third tier levels
• Developed strategies and practical techniques to involve the supply chain in resolving the issues and improving performance
• Measured the qualitative and quantitative improvements
• Analysed the critical success factor and written these in a form suitable for dissemination to the wider supply chain and industry
• Trained internal facilitators in continuing the delivery and development of this work.

The Approach
Interserve has worked hard at rationalising its supply chain and developing a company-wide database. In reality the company has many different supply chains due to the wide variety of construction work undertaken by the company and its geographical spread. These supply chains are associated with specific business areas and framework arrangements. The project used a bottom-up approach to supply chain development, working with second and third tier suppliers on specific projects and framework contracts and within business units.

The project involved a wide range of integration activities between February 2004 and December 2005 involving some 275 people and 74 different supply chain partners. The partners and activities expanded over the project period from the original BT and NHS Procure 21 Frameworks to include the Department for Work and Pensions, Somerfield and Leicestershire County Council supply chains.

Key Results
The report identifies current supply chain issues and suggests actions for contractors. The supply chain issues and suggested actions for contractors are categorised under five key supply chain development areas:

• Contractor's leadership
• Contracting strategies and policies
• People and organisational culture
• Supply chain partnerships
• Business processes.

Conclusions
Significant progress has been made over the last seven years by the construction industry in improving supply chains. The challenge is now to continue the development process in what is likely to be a shrinking, rather than expanding, construction market.

Successful construction supply chains require a whole industry and whole business approach to developing closer working relationships. It requires increasingly integrated partnership between clients, contractors and suppliers and the support of professional institutions, trade associations, education, training and funding providers, government departments and agencies. Strong leadership will be required to develop the level of openness and trust required in areas where there has been suspicion in the past.

The report provides examples of some aspects of current supply chain best practice. It aims to provide contractors with ideas and activities that they can adapt to assist in developing there own supply chains. Developing high performance supply chains in construction, similar to those found in the manufacturing and retail sectors, is possible. It will require clients and contractors to continue to invest time and resources in developing better processes and closer working relationships.

To view the full report, please, CLICK HERE