Optimise your Supply Chain
Author: Jeremy Hammant, CSC
CSC supply chain expert Jeremy Hammant discusses what the Construction sector can learn from other industries. The average profit margins in the Engineering, Constructions & Operations industry are extremely tight, many organisations often operate at lower levels in order to remain operational. In a construction project up to 75% of income may go to the supply chain and on occasion it is not surprising that the supply chain is the greatest cost and almost certainly some of the greatest risk of a major construction project. Digital twinning and Cloud-based technology combined with best practice from other sectors are now changing this. Our maturity assessment will help you identify where to prioritise your digital investment.
Ensuring the supply chain is operating at maximum efficiency is vital. This is on many occasions made more difficult when organisations further down the supply chain are having to deal with constraints that are unknown to the prime contractor. Our experience gained over many years from other industries such as Aerospace & Defence, Automotive, Consumer Industries and Natural Resources informs us it is possible to introduce ‘factory thinking’ into the Engineering and Construction sector to mitigate against these threats.
We are enabling this thinking with technologies that facilitate off-site pre-construction although there is potential to extend this thinking much further. For example, for clients in sectors such as Aerospace & Defence, and Automotive we already use ‘digital twins’ to simulate the complete supply chain pre-construction and in some cases, as part of the bid process to really understand how to achieve performance. This approach can be used to educate all partners, identify and address risk.'
At CSC we believe innovation powered by the cloud now makes it possible for all members of organisations within a supply chain to have access to the right information and tools for optimising capacity, logistics, workforce, ‘just-in-time’ delivery and managing risk and dealing with the unexpected.
CSC and its partners can help transform how the Construction Sector operates by addressing the critical dimensions affecting supply chain costs and efficiency.
The first step can involve carrying out a free high-level maturity assessment of a company’s environment, some of the questions we ask are:
Financial - How well are timely financial and performance data shared across the supply chain to optimise performance?
Commercial – Is there a high degree of information, risk and benefit sharing across key alliances, including e-procurement and contract management?
Capacity – Are risks of capacity and waste being minimised through scheduling and tracking? Is virtualisation used to model capacity and risk throughout the project?
BIM Process – Is an Open BIM platform used to provide financial, project, time, resource and 3D design viewpoints using a common object model? (6D BIM).
Prefabrication and Facades – Is prefabrication at different levels of aggregation used to standardise, de-risk and shorten the supply chain and minimise on-site construction? Is virtualisation used to model and optimise the end to end process?
Equipment – Are RFID-tagging and self-monitoring equipment in place to ensure optimal use and re-use? Is equipment scheduled across the supply chain?
Parts – Is just-in-time JIT material supply based on dynamic maintenance alongside historic schedules? Is there full supply chain visibility of parts?