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Cost modelling construction logistics centres
Linköping University, Department of Science and Technology, Communications and Transport Systems. Linköping University, Faculty of Science & Engineering. (Bygglogistik)ORCID iD: 0000-0003-0693-8537
Linköping University, Department of Science and Technology, Communications and Transport Systems. Linköping University, Faculty of Science & Engineering. (Bygglogistik)
2018 (English)In: Proceedings of the 30th annual Nofoma conference; Relevant Logistics and Supply Chain  Management Research, Kolding, Denmark / [ed] Jan Stentoft, Odense: University of Southern Denmark , 2018Conference paper, Published paper (Refereed)
Abstract [en]

Purpose: Construction logistics centres (CLC) are decreasing disturbances to the surrounding society through improved logistics flows and are a novelty within construction supply chains. Therefore, the knowledge of how to budget for the use of a CLC within the logistics flows is lacking among clients and main contractors. Thus, the purpose of this paper is to analyse what costs a CLC entails and to propose a model for calculating these costs.

Design/methodology: The cost for a contractor of utilising a CLC has been studied based on the services invoiced to contractors over a time period of three years (2013 – 2016). From this, cost modelling for the most common services provided in CLC’s has been conducted.

Findings: The study proposes a cost model for CLC’s and indicates the level of these costs compared to the total project size.

Research implications: Through the cost model for determining the cost of CLC’s, this paper contributes to reducing the barriers towards construction logistics solutions by clarifying the costs in relation to possible benefits.

Practical implications: Contractors, LSP’s and municipalities can find support on how to calculate the costs of utilising a CLC and also how to develop business models of setting up CLC´s.

Originality/value: As the use of CLCs is a new phenomenon in construction, this paper contributes by exploring the important and rarely studied cost aspects of CLCs.

Place, publisher, year, edition, pages
Odense: University of Southern Denmark , 2018.
Keywords [en]
construction logistics; third-party logistics; construction logistics centres; cost modelling; logistics costs; activity-based costing
National Category
Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:liu:diva-147535ISBN: 9788791070938 (print)OAI: oai:DiVA.org:liu-147535DiVA, id: diva2:1200667
Conference
The 30th NOFOMA Conference, 13-15 June, University of Southern Denmark, 2018
Funder
Svenska Byggbranschens Utvecklingsfond (SBUF)VinnovaAvailable from: 2018-04-24 Created: 2018-04-24 Last updated: 2019-09-24Bibliographically approved
In thesis
1. Construction Logistics Solutions in Urban Areas
Open this publication in new window or tab >>Construction Logistics Solutions in Urban Areas
2018 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

More and more people are living in, or moving to, urban areas than ever before. This attraction to urban areas means that new houses and work places are needed. Building new houses or renovating older housing stock is a natural way for a city to evolve. However, the end products of construction projects are produced at their place of consumption. This means that a multitude of materials and resources need to be delivered to, and removed from, each construction site. This leads to new transport flows being created in urban areas. In urban areas, these transports are subjected to space limitations, environmental demands, accessibility demands and noise restrictions. This has led to a situation where material deliveries to construction sites needs to be coordinated and managed in ways that reduce their impact on the urban transport system and at the same time ensuring efficient construction projects.

In essence, construction in urban areas faces two problems; the urban transport problem and the problem of coordinating multiple construction stakeholders. One way to address these problems is through the use of construction logistics solutions such as terminals (e.g. construction logistics centres) and checkpoints. The aim of both types of solutions is to control and coordinate construction transports. In the construction industry, these solutions are however, still a rather new phenomenon. This means that how these solutions are perceived by different stakeholders, and the effect the solutions have on material flows and costs, needs to be explored further.

The purpose of this thesis is to explore how construction logistics solutions can be used as a means to coordinate material flows to ensure efficient construction and reduce disturbances on the urban transport system. To achieve this purpose, the following research questions have been addressed:

RQ1:   How are different stakeholders in the construction industry affected by construction logistics solutions?

RQ2:   How will the use of construction logistics solutions affect material flows and costs in urban construction projects?

To answer the research questions two main methodologies have been used; case study research for the empirical studies and literature reviews for the analysis of the case studies as well as for understanding how supply chain management, logistics, and third-party logistics affects the inter-organizational relationships of the construction industry.

The main findings of the research are firstly that construction logistics solutions do have a role to play in the coordination of different construction stakeholders. Adding this new node will force construction stakeholders to address coordination issues in order to ensure that material deliveries arrive to construction sites on time. This also implies that new inter-organizational relationships will evolve, where communication is key. However, this may not be an easy task as it will call for an attitude adjustment towards a more open and collaborative environment.

Secondly, adding a construction logistics solution can reduce some unnecessary friction between construction stakeholders and third parties. Coordinated material flows can lead to a reduction in the amount of material delivery vehicles that travels to site, thus alleviating some of the congestion in the urban transport system. This will not reduce all friction between construction projects and third parties, but it is a step in the right direction.

Thirdly, a construction logistics solution must come with a set of regulations and a governance strategy from the initiator of the solution. This governance strategy must be clearly stated and communicated to the affected stakeholders. To alleviate animosity towards the solution, flexibility and stakeholder involvement is key. If the directly affected stakeholders are consulted on the function, chances are that they will be more accepting of the solution.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2018. p. 60
Series
Linköping Studies in Science and Technology. Licentiate Thesis, ISSN 0280-7971 ; 1806
Keywords
construction logistics; construction logistics centres; third-party logistics; governance; stakeholders
National Category
Transport Systems and Logistics
Identifiers
urn:nbn:se:liu:diva-147536 (URN)10.3384/lic.diva-147536 (DOI)9789176852903 (ISBN)
Presentation
2018-06-08, K3, Kåkenhus, Linköpings univeristet, Campus Norrköping, Norrköping, 13:15 (English)
Opponent
Supervisors
Funder
Svenska Byggbranschens Utvecklingsfond (SBUF)Vinnova
Available from: 2018-05-15 Created: 2018-04-24 Last updated: 2019-10-12Bibliographically approved

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