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Logistics strategy, structure, and performance: A typology of logistics configurations in construction
Linköping University, Department of Science and Technology, Communications and Transport Systems. Linköping University, Faculty of Science & Engineering.
2021 (English)In: Proceedings of the CIB International Conference on Smart Built Environment, ICSBE, 2021, p. 348-357Conference paper, Published paper (Refereed)
Abstract [en]

Building contractors need to understand their operational context to manage logistics efficiently andeffectively. However, we know little about the choices regarding organization of logistics in buildingcontractors and its relationship to performance. Thus, the purpose of this paper is to develop a typologyof ideal logistics configurations and to discuss the strengths and weaknesses of the fit as profiledeviation perspective for logistics configuration studies in construction. The typology is based on acritical review of stand-alone contingency studies within the logistics and construction managementresearch domains. Two logistics configurations positioned at the extremes of a spectrum are identified.The first is the product-process oriented configuration resembling to the way industrializedhousebuilders organize and manage logistics. The second is the project-oriented configuration, whichresemble to how logistics is managed when operations are characterized by a high degree of on-siteconstruction and project-specific engineering designs. The product-process oriented configurationtypically generates low total costs of material supply and short and reliable lead times, while theproject-oriented configuration has a flexible material supply process to support the high degree ofvariability in on-site operations and in the supply chain. Thus, these two configurations will performbetter within different performance categories (project lead time, cost, and flexibility). Furthermore,the fit as profile deviation perspective is a promising approach to empirically assess the twoconfigurations. For managerial practice, the typology can guide building contractors and consultantsin evaluating existing logistics configurations and how to maintain ideal configurations when newlogistics roles emerge.

Place, publisher, year, edition, pages
2021. p. 348-357
Keywords [en]
Building Contractors, Configuration Research, Logistics Strategy
National Category
Construction Management
Identifiers
URN: urn:nbn:se:liu:diva-184487ISBN: 978-1-907240-71-3 (print)OAI: oai:DiVA.org:liu-184487DiVA, id: diva2:1653793
Conference
CIB International Conference on Smart Built Environment
Available from: 2022-04-25 Created: 2022-04-25 Last updated: 2022-04-25
In thesis
1. Logistics Strategy for Building Contractors: CONTEXT, CONTENT, AND PROCESS
Open this publication in new window or tab >>Logistics Strategy for Building Contractors: CONTEXT, CONTENT, AND PROCESS
2022 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

A logistics strategy is at the foundation of how a company manages the flow of resources in the supply chain. It ensures that the logistics function of a company contributes to fulfilling strategic goals. In the project-based building construction industry, logistics is a means of supporting building operations by ensuring that resource flows are managed efficiently in the supply chain and at the construction site. However, there is a tendency to focus on operational logistics issues and to adopt established logistics principles from other industries to solve logistics-related problems in building construction, which typically favour “one size fits all” solutions. These approaches to construction logistics are problematic because building contractors target different market segments through their type of products, production methods, and supply chains. Therefore, there is not a “one best way” of managing logistics in building construction. 

This thesis focuses on how a building contractor can adopt a more strategic and long-term approach to logistics. Strategy is typically regarded in terms of three dimensions: context, content, and process. Consequently, building contractors need to understand the logistics strategy context, how it influences the logistics strategy content, and the process of formulating and implementing a logistics strategy. The purpose of this licentiate thesis is therefore to investigate the fit between logistics strategy context and content for building contractors.

To fulfil the purpose, the following two research questions are answered:

RQ1: What elements of logistics strategy context and content can be used to assess the fit of building contractors’ logistics strategies?

RQ2: What leads to fit/misfit in building contractors’ logistics strategies?

To answer the research questions, a combination of conceptual and empirical research methods has been used. The conceptual part comprises a literature review that was used to derive constructs to develop conceptual research frameworks. The literature review also served as input to defining research questions and as guidance for collecting empirical data. The empirical methods used are based on case studies to further develop and verify the conceptual research framework.

The main findings of this thesis are four logistics strategy context elements and five content elements that can be used to assess the fit between a building contractor’s logistics strategy context and content. This fit is important to facilitate logistics’ role as a support function for a cost/delivery or flexibility-oriented competitive strategy. However, fit is difficult to achieve in practice and the logistics strategy process can be constrained by the building contractor’s previous investments and the support given by internal stakeholders. This means that fit is not solely a deliberate choice made for efficiency/effectiveness reasons but includes comprises between previous and future directions and managerial discretion. 

This thesis contributes to the logistics strategy body of knowledge concerning the context, content, and process dimensions of logistics strategy within building construction. The thesis shows that there are trade-offs in selecting a logistics strategy that supports a cost/delivery or flexibility-oriented strategy. These trade-offs emerge as a consequence of different degrees of pre-engineering, type of production systems, and supply chain structures employed by building contractors, which building contractors needs to address during logistics strategy formulation. A logistics strategy profiling template was developed, which is a tool that managers in building contractor organizations can use to analyze and reconfigure a logistics strategy. Furthermore, the thesis highlights that building contractors should establish a central logistics function that takes responsibility for strategic logistics decisions, regardless of their logistics strategy context.

Abstract [sv]

En logistikstrategi utgör grunden för hur ett företag hanterar flödet av resurser i försörjningskedjan och säkerställer att logistikfunktionen bidrar till att uppfylla företagets övergripande strategi. Inom husbyggande har logistik en stöttande funktion som avser att hantera resursflöden effektivt i försörjningskedjan och på byggarbetsplatsen. Byggentreprenörer tenderar dock att fokusera på logistiken i enskilda projekt och på att föra in etablerade logistiska principer från andra branscher. Detta tillvägagångssätt är problematiskt eftersom logistiklösningar som fungerar i andra branscher inte nödvändigtvis fungerar i byggproduktion. Byggproduktion skiljer sig från industriell produktion och husbyggnadsbranschen är mångsidig med olika typer av entreprenörer som riktar sig till olika marknadssegment genom att leverera olika typer av produkter, vilket i sin tur kräver olika typer av produktionsmetoder och försörjningskedjor. Därmed behöver byggentreprenörer anpassa sin logistikstrategi till dess kontext eftersom generella lösningar riskerar att vara dåligt anpassade för att hantera logistiken i olika typer av husbyggande.

Forskningen som presenteras i denna licentiatavhandling fokuserar på hur en byggentreprenör kan ta ett mer strategiskt och långsiktigt förhållningssätt till logistik. Syftet är därför att undersöka hur logistikstrategin bör anpassas till dess kontext. Studierna som avhandlingen bygger på har genomförts hos stora byggföretag som i huvudsak har sin verksamhet i Sverige.

I denna avhandling har fyra beståndsdelar identifierats som representerar logistikstrategins kontext samt fem beståndsdelar som representerar logistikstrategins innehåll. Dessa beståndsdelar kan användas för att bedöma hur väl anpassad logistikstrategins innehåll är till dess kontext. Denna situationsanpassning är viktig för att underlätta logistikfunktionens roll som stöd för en kostnadseffektivitets- eller flexibilitetsinriktad konkurrensstrategi. Forskningsresultaten visar dock att detta är svårt att uppnå i praktiken då implementeringen av logistikstrategin begränsas av byggentreprenörens tidigare investeringar och av olika interna aktörers intressen. Detta innebär att det inte enbart går att utforma sin logistikstrategi utifrån effektivitetshänseende, utan det behövs tas hänsyn till balansgången mellan tidigare och framtida strategiska inriktningar.

Denna avhandling bidrar till kunskap om logistikstrategi i termer av strategikontext, innehåll och process hos byggentreprenörer. Avhandlingen visar att det finns avvägningar i att välja en logistikstrategi som stödjer en kostnadseffektivitets- eller flexibilitetsinriktad strategi. Dessa avvägningar uppstår som en konsekvens av att logistikstrategin måste vara utformad för att tillgodose den komplexitet och förutsägbarhet som finns i logistikprocesser, vilket i sin tur beror på graden av förprojektering, typ av produktionssystem samt försörjningskedjans struktur. För att underlätta för byggentreprenörer i deras logistikstrategiarbete har en profileringsmall utvecklats. Mallen är ett verktyg som logistikchefer och logistikansvariga i byggföretag kan använda för att analysera en befintlig, eller formulera en ny, logistikstrategi. Detta arbete bör ha sin utgångspunkt i en central logistikfunktion som tar ansvar för strategiska logistikfrågor, vilket i dagsläget är ovanligt hos byggentreprenörer.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2022. p. 46
Series
Linköping Studies in Science and Technology. Licentiate Thesis, ISSN 0280-7971 ; 1932
National Category
Civil Engineering
Identifiers
urn:nbn:se:liu:diva-184504 (URN)10.3384/9789179293116 (DOI)9789179293109 (ISBN)9789179293116 (ISBN)
Presentation
2022-05-20, K2, Kåkenhus, Campus Norrköping, Norrköping, 09:15 (Swedish)
Opponent
Supervisors
Funder
Svenska Byggbranschens Utvecklingsfond (SBUF)
Available from: 2022-04-25 Created: 2022-04-25 Last updated: 2022-04-25Bibliographically approved

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