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Third-party logistics in construction: the case of a large hospital project

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  • Andreas Ekeskär
  • Martin Rudberg

Abstract

The construction supply chain is of temporary nature and complex, with many interactions between multiple actors in different construction projects. This challenging context typically leads to relatively higher costs and lower productivity, compared to other industries. Supply chain management (SCM) has been put forward as a mean to better handle this challenging context. As a part of SCM initiatives some construction industry stakeholders have turned to third-party logistics (TPL) providers, especially in large construction projects. The use of TPL providers is a new, and under-investigated, phenomenon in the construction industry. The main purpose of this study is thus to explore the use of a TPL provider in a large construction project and to analyse its resulting effects. Driving forces and possible concerns for implementing TPL are identified and the possibility for TPL to be a facilitator for implementing SCM in construction is investigated. The research is based on a literature review and an explorative case study of a large hospital project in Sweden, where the client and the main contractor have initiated the use of a TPL provider to coordinate sourcing and materials handling activities on site. The results show positive effects on establishing an effective interface between the construction site and the supply chain. The results also show that a TPL solution facilitates an increase in productive work at the construction site itself, a reduction of costs and an increased utilisation of site assets. On the downside, the study also shows a lack of SCM knowledge amongst the involved actors in the project, hindering them to reap the full potential of TPL.

Suggested Citation

  • Andreas Ekeskär & Martin Rudberg, 2016. "Third-party logistics in construction: the case of a large hospital project," Construction Management and Economics, Taylor & Francis Journals, vol. 34(3), pages 174-191, March.
  • Handle: RePEc:taf:conmgt:v:34:y:2016:i:3:p:174-191
    DOI: 10.1080/01446193.2016.1186809
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    Cited by:

    1. Ahmet Anil Sezer & Anna Fredriksson, 2021. "Paving the Path towards Efficient Construction Logistics by Revealing the Current Practice and Issues," Logistics, MDPI, vol. 5(3), pages 1-15, August.
    2. Kamal Dhawan & John E. Tookey & Ali GhaffarianHoseini & Mani Poshdar, 2023. "Using Transport to Quantify the Impact of Vertical Integration on the Construction Supply Chain: A New Zealand Assessment," Sustainability, MDPI, vol. 15(2), pages 1-26, January.
    3. Mohd Nasrun Mohd Nawi* & Najuwa Mohd Nasir & Mohd Suhaimi Mohd Danuri & Othman Mohamed & Saipol Bari Abdul Karim, 2018. "Client-Related Factor Contributing to Delay in the Malaysia Public Projects," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 289-293:6.
    4. Farah Naz & Anna Fredriksson & Linea Kjellsdotter Ivert, 2022. "The Potential of Improving Construction Transport Time Efficiency—A Freight Forwarder Perspective," Sustainability, MDPI, vol. 14(17), pages 1-19, August.
    5. Anna Fredriksson & Linnea Eriksson & Jonas Löwgren & Nina Lemon & Daniel Eriksson, 2022. "An Interactive Visualization Tool for Collaborative Construction Logistics Planning—Creating a Sustainable Project Vicinity," Sustainability, MDPI, vol. 14(24), pages 1-14, December.

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