Authors: Prof. Mr. Rohit Deshmukh, Akshay Sharma, Suraj Pagar, Atharva Patil, Prathmesh Ratnaparkhi
Certificate: View Certificate
Effective management on supply chain in construction material is crucial for country’s progress as it constitutes a significant aspect of the economy. The primary responsibility of supply chain management is to maintain discipline and excellent condition for construction material. Root Cause Analysis (RCA) is a popular and often used technique, Pareto chart these two processes is very essential and effective that helps people answer the question of why the problem occurred in first place. The supply chain also represents the steps it takes to get the product or service from its original state to the customer on time-to-time basis. In the study that was carried out, it was found that the problems that these businesses face on day-to-day basis are related to Delay in delivery, loss of materials in storage/transportation, whose one of the root causes found to be the absence of Forecasting method, this study focuses on choosing the best suitable forecasting method that they can implement in their business activities for reducing the impact of particular problems. Vital few is very important aspect of supply chain management as it focuses on items which are causing some type of damage or delay or quality of material. In order to correlate various factors such as delay, damage of material, Vital few comes in handy.
In the study that was carried out, it was found that the problems that these businesses face on day-to-day basis are related to Delay in delivery, loss of materials in storage/transportation, whose one of the root causes found to be the absence of Forecasting method, this study focuses on choosing the best suitable forecasting method that they can implement in their business activities for reducing the impact of particular problems Surely, it allows the decision-making process to become more efficient, focusing on key activities (business drivers). Indeed, the whole concept is based on the vital few and trivial many concepts. This project wants to point out the problems that construction material traders or suppliers faces in their day-to-day operations which significantly impact their overall business. Significance of the study for every business, there are both the suppliers and customers are involved. Considering these two entities, either buying or selling of goods/materials takes place. Each business has their supply chain and operation strategy. A supply chain is a network between an enterprise and its suppliers to produce and distribute a specific product to the final buyer.
This network includes different activities, people, entities and resources. This study will focus on the supply chain of a construction equipment trading business which deals with the goods/material like Cement, AAC blocks (Autoclaved Aerated Concrete), Clay Bricks, River sand, etc. This project research will also include the study of problems that these business faces on day-to-day basis when it comes to transporting the goods and focus on the problems related inventory of those goods. This study will collect and analyse the data related to problems faced by construction material traders on day-to-day basis. This study will focus on the problems in this sector and try to focus on most profit giving problems if they are eliminated. This research aims to provide practical solutions for problems that occur.
II. LITERATURE REVIEW
The case study outlines how to optimize business processes by using Swimlane charts and how to reduce operating costs by applying the target cost method. The article concludes with our conclusions about the real benefits of optimizing business processes in a construction project by using the target cost method and increasing the performance of entities in this field.
2. Dr. Gwaith Al - Werikat, (December 2017). “Supply Chain Management in Construction; Revealed” 
This paper discusses the construction supply chain characteristics, challenges and problems supply chains encounter and the benefits of an integrated supply chain in the construction sector.
3. S. Hasim, M. A. Fauzi, Z. Yusof, et al. (April 2018). “The material supply chain management in a construction project: A current scenario in the procurement process” 
It presents the existing research in the field of materials procurement of SC which includes SC concepts and traditional management versus supply chain management (SCM). The discussions on the evolution of SCM have also been included to show how SC is defined and practised today, with the intention of highlighting new opportunities to improve the performance of materials SCM.
4. Atiq Ur Rehman, M., Chaabane, A., and Khan, S.A., (September 2021). “Review of Construction Supply Chain Optimization Papers for Performance Improvement” 
The findings of this study shows that there is need of a framework that integrate all CSC processes for its overall optimization as very few studies incorporated design phase processes with procurement and execution phase processes in their optimization model.
5. H.L. Lee, Z.-J. (M. Shen) (September 2020). “Supply chain and logistics innovations with the Belt and Road Initiative” 
It studied that the Belt and Road Initiative (BRI) is a massive, ambitious, long-term project initiated by the Chinese government, with participation from many other countries, to facilitate trade and improve logistics in an effort to promote global economic development.
6. Butkovi? et al. (July 2017). “Supply Chain Management in the Construction Industry – A Literature Review” 
It aims at providing guidance for future research related to supply chains in construction, is to review existing research and synthesize main approaches and findings. In particular, this review seeks to screen existing studies (published in period 2010-2016 using ProQuest database) with regard to their: level of analysis, research focus, type of study/paper, the sample used, analysed relationships and the different types of construction subjects which are covered and linked into supply chains.
III. PARETO ANALYSIS
Pareto analysis is a statistical technique in decision making that is used for the selection of a limited number of tasks that produce significant overall effect. The results of a Pareto analysis are typically represented through a Pareto chart.3.
Pareto analysis is a statistical technique in decision making that is used for the selection of a limited number of tasks that produce significant overall effect. It is one of the most commonly used, and easy to implement method. Pareto analysis is a relatively simple methodology that is used when trying to determine which tasks or factors in an organization will have the most impact. It ranks the data/factors in the descending order from the highest frequency of occurrences to the lowest frequency of occurrences. The total frequency is summed to 100 percent. The “vital few” items occupy a substantial amount (80 percent) of cumulative percentage of occurrences and the “useful many” occupy only the remaining 20 percent of occurrences, which is also known as the 80-20 rule.
A. On Time Delivery to Customer
On time delivery drives better collaboration with your customers, ensures reliability of delivery and most importantly customer loyalty. Customer expects you to meet the promised delivery date and time. It is important to set the right expectations with your customers and meet them. On time delivery (OTD) is metric used to access the ability of a business in fulfilling the shipment order within the period of promised delivery time. Consider any business, OTD is important. But In this particular kind of research related to Construction material traders business.
B. Unavailability of Transport vehicles/ Drivers
Availability of transport vehicles/drivers directly affects to the On-Time Delivery for the customers. When you are in trading business, delivery of the products defines your business. As for Construction material trading business, as per the requirement of material on particular day, delivery has to be made. In case of demand bulge, majority of this problem arises.
C. Trouble reaching Address (Remote locations)
Some of the delivery locations are unknown for a driver/transport vehicle, and delivery for such kind of locations is sometimes becomes difficult. This problem generally occurs when a particular location is new to the driver or if it is located at the remote location in rural area.
D. Delivery in time (At the time of Buying)
Delivery in time from the supplier plays an important role for any kind of business as it reflects in availability of material for the further operations. Consider any kind of business, any further operation such as manufacturing, or production is dependent on the availability of raw materials from the respective supplier for the further operation.
For achieving this, supplier relations must be maintained. And the supplier must be at the minimum distance from the shop for the which can provide you the best quality of materials that you required for the shop in less possible time.
E. Damage / loss of Materials (Storage & transportation)
The Causes/issues that cause ‘Damage/loss of Materials’ are illustrated with the help of Ishikawa / Fishbone diagram:
F. Damage of product during transport (Buying and selling)
As for any business, especially for trading business, transporting is major operation which has to be conducted by taking all the safety measures. If the materials that are transported are fragile, they can get damaged while transporting. The damage that occurs depend upon following factors:
G. Loss of material during storage (Damage due to improper way of inventory management or because of environmental issues)
Inventory is the goods that a business owns that it plans to sell. If your company is apparel retailer, products become inventory when you take possession of shirts, dresses, suits and accessories from the suppliers. Those products leave the stock when they are sold to customers. Inventory can be stored in premises, warehouses etc.
As per the survey conducted, It was observed that all the shops that have been surveyed for the problem of Environmental factors such as Moisture, Rains, Floods affect the storage of the materials as the Shops are in coastal region.
H. Change/Difference in Quality & Quantity
The Causes/issues that cause ‘Change/Difference in Quality & Quantity’ are illustrated with the help of Ishikawa/Fishbone diagram:
I. Difference in Quantity ordered and delivered (Buying and selling)
Difference in quantity ordered and delivered while buying and selling of the materials is a problem that occurs mostly because of human errors. This error occurs due to following reasons:
J. Difference in Quality of product
Difference in quality of products occurs mainly because of multiple suppliers. For some of the trading shops, the suppliers change because of issues during operations (quality of products, more time for delivery from suppliers). Because of these reasons supplier for a particular product change. This results in changing of quality for that particular product as the supplier changes.
Some of the customers may prefer a particular quality of product but as the supplier changes that customer might nit prefer that particular new product quality and can move for other traders for the order. This can impact business. That’s why selecting a proper supplier for a product is important as far as the smoother operation of business is concerned.
Supply chain management refers to the coordination and oversight of the flow of goods, services, and information from the initial sourcing of raw materials to the delivery of the final product to the end consumer. Here is a concise methodology for effective supply chain management:
Remember that this methodology provides a high-level overview, and each step may involve numerous sub-processes and considerations. The specific implementation of the methodology will vary based on the organization's size, industry, and specific supply chain requirements.
Overall, successful supply chain management results in improved operational efficiency, cost savings, customer satisfaction, risk mitigation, innovation, and sustainability. These outcomes contribute to the overall success and competitiveness of organizations in today's complex and rapidly changing business environment.
Supply chain management is a critical aspect of modern business operations. It involves the coordination and integration of various activities, processes, and stakeholders across the entire supply chain to ensure the efficient flow of goods, services, and information. Effective supply chain management can provide numerous benefits, while poor management can lead to disruptions, increased costs, and customer dissatisfaction.
One key aspect of supply chain management is demanding forecasting and planning. Accurate demand forecasts are crucial for aligning production, procurement, and inventory levels with customer demand. By leveraging historical data, market trends, and customer insights, organizations can optimize their supply chain to meet customer expectations while minimizing excess inventory or stockouts.
Supplier management is another critical area within supply chain management. Selecting reliable suppliers, negotiating favourable terms, and maintaining strong relationships is essential for ensuring a consistent and high-quality supply of raw materials or finished goods. Supplier performance monitoring, risk assessment, and continuous improvement initiatives are vital to mitigate potential disruptions and maintain a resilient supply chain.
Inventory management is a complex task that involves finding the right balance between holding sufficient stock to meet customer demand and minimizing excess inventory costs.
Techniques such as just-in-time (JIT) inventory, vendor-managed inventory (VMI), and efficient replenishment strategies can help optimize inventory levels, reduce carrying costs, and improve cash flow.
Efficient transportation and logistics management are critical for timely delivery and cost optimization. Organizations need to consider factors such as transportation modes, carrier selection, route optimization, and warehousing strategies to minimize transportation costs, reduce lead times, and ensure accurate order fulfilment.
Technology plays a significant role in supply chain management. Advanced software systems like enterprise resource planning (ERP), warehouse management systems (WMS), and transportation management systems (TMS) provide real-time visibility, data analytics, and automation capabilities, enabling organizations to streamline processes, improve decision-making, and enhance overall supply chain efficiency.
Collaboration and communication are fundamental elements of effective supply chain management. Organizations must collaborate closely with suppliers, customers, and other stakeholders to share information, anticipate demand fluctuations, and jointly solve problems, strategic partnerships can lead to improved supply chain performance and responsiveness.
Sustainability and social responsibility have gained increasing importance in supply chain management. Organizations are expected to incorporate sustainable practices, such as reducing carbon emissions, minimizing waste, and promoting ethical sourcing, to meet environmental and social standards. Supply chain management provides opportunities to optimize transportation routes, select eco-friendly packaging, and ensure fair labor practices throughout the supply chain.
In conclusion, effective supply chain management is essential for organizations to stay competitive in today's global marketplace. By implementing sound strategies, leveraging technology, fostering collaboration, and embracing sustainability, organizations can achieve cost efficiencies, enhance customer satisfaction, mitigate risks, and drive overall business success. Continuous improvement and adaptation to changing market dynamics are key to maintaining a resilient and agile supply chain.
Lack of sight: One obstacle to effective supply chain management is the absence of adequate chain-wide visibility.
As a result, there may be difficulties with inventory management, erroneous demand forecasting, and the inability to spot bottlenecks or disruptions.
Collaboration and information sharing: The absence of efficient communication and cooperation among the many supply chain players is another barrier. This may result in a breakdown in communication,delays in making decisions and ineffective coordination.
Networks with several tiers of suppliers, distribution centres, and transportation routes make up complicated supply chains. It can be difficult to manage such complex networks, especially when it comes to increasing productivity, cutting expenses, and guaranteeing on-time delivery. Demand volatility: Variations in Risk management: There are several hazards that can affect supply chains, including natural disasters, geopolitical unrest, supplier failures, and disruptions in transportation. Proactive tactics and backup plans are necessary for managing and mitigating these risks.
X. FUTURE SCOPE
Root cause analysis, Vital few and Pareto analysis this are the very important methods in the supply chain management as it solves major problems of supply chain management in construction activity and hence, they should be use widely. Remember, the specific appendices included will depend on the context, purpose, and requirements of the supply chain management documentation.
Supply chain management is a critical discipline that involves the coordination and optimization of activities, processes, and stakeholders across the entire supply chain. Its effective implementation can yield significant benefits for organizations, including cost reduction, improved customer service, increased efficiency, enhanced collaboration, risk mitigation, innovation, and sustainability. By strategically planning, sourcing, producing, delivering, and tracking products or services, organizations can achieve operational excellence, maintain a competitive edge, and meet customer expectations. Leveraging technology, fostering collaboration, and embracing sustainability are key factors in successful supply chain management. Continuous improvement, adaptability, and responsiveness to market changes are crucial for maintaining a resilient and efficient supply chain in today\\\'s complex business landscape.
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Copyright © 2023 Prof. Mr. Rohit Deshmukh, Akshay Sharma, Suraj Pagar, Atharva Patil, Prathmesh Ratnaparkhi. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.