University of Salford Global Supply Chain Management: Construction Industry
Implementation of Cutting Edge Technologies in Addressing Supply Chain Challenges in Construction Industry
Download 215.55 Kb.
|
- Navigate this page:
- 3.1 Addressing Supply Chain Challenges using Technology
3.0 Implementation of Cutting Edge Technologies in Addressing Supply Chain Challenges in Construction IndustryWhile technology does not provide an instant solution to all supply chain challenges in the construction industry, it does offer the potential to alleviate some of the core problems. Emerging technologies, particularly those associated with Industry 5.0, can play a significant role in transforming the construction industry's supply chain. 3.1 Addressing Supply Chain Challenges using TechnologyThe evolution from Industry 4.0 to Industry 5.0 represents a significant shift in the manufacturing and industrial landscape. Industry 4.0, focused on the integration of digital technologies and automation to enhance productivity and efficiency. It introduced concepts like the Internet of Things (IoT), big data analytics, artificial intelligence (AI), and cyber-physical systems (Cañas et al., 2020). Industry 5.0 on the other hand builds upon the foundation of Industry 4.0 but emphasizes the importance of human collaboration and interaction alongside advanced technologies (Xu et al., 2021). Thus It recognizes that while automation and AI can bring efficiency gains, they cannot fully replace human skills, creativity, and decision-making. Industry 5.0 seeks to foster a harmonious coexistence between humans and machines, leveraging technology to enhance human capabilities rather than replacing them. Artificial Intelligence (AI), has the potential to address various supply chain problems in the construction industry. For example, AI-powered predictive analytics can help optimize inventory management by analysing historical data, demand patterns, and project schedules to forecast material requirements accurately (Min, 2010). This prevents overstocking, reducing costs and project delays. AI can also improve logistics and transportation planning by leveraging real-time data, traffic information, and weather conditions to optimize routes, delivery schedules, and resource allocation (Sharma et al., 2022). This enhances efficiency, minimizes transportation costs, and ensures timely material deliveries to construction sites. Additionally, AI-driven algorithms can enable better coordination among stakeholders by automating and optimizing project scheduling, resource allocation, and task sequencing. This streamlines project workflows, minimizes conflicts, and improves overall project performance. For instance, AI-based construction management systems can automatically detect clashes or conflicts in design models, alerting project teams to resolve issues early on, reducing rework, and avoiding costly delays (Helo and Hao, 2022). By harnessing the power of AI, the construction industry can enhance supply chain visibility, decision-making, and collaboration, ultimately improving efficiency, reducing costs, and delivering projects more effectively. Blockchain technology is a decentralized and transparent digital ledger that records and verifies transactions securely and immutably (Safa, Baeza and Weeks, 2019). Thus it holds great potential for solving supply chain problems in the construction industry. One key challenge in construction supply chains is the lack of transparency and trust among multiple stakeholders (Kim, Lee and Kim, 2020). According to Liu, Han and Zhu (2023), blockchain can address this by providing a decentralized, immutable, and transparent ledger that records all transactions and interactions in a secure and traceable manner. This enhances accountability, reduces fraud, and improves trust among participants. For instance, Smart Contracts, which are self-executing contracts built on blockchain, can automate and enforce agreements between different parties in the supply chain (Safa, Baeza and Weeks, 2019). This ensures that contractual obligations are met, reducing disputes and delays. Another challenge in the construction industry is verifying the authenticity and quality of construction materials. Blockchain can create a digital record of each material's journey, including its origin, manufacturing details, and certifications (Safa, Baeza and Weeks, 2019). This enables real-time tracking, authentication, and traceability, ensuring that only high-quality materials are used. For example, Provenance, a blockchain-based platform, has been used to trace and verify the origin of materials in construction projects, promoting transparency and sustainability (Celik, Petri and Barati, 2023). Furthermore, blockchain-based supply chain platforms can streamline payment processes and ensure fair and timely compensation for suppliers and contractors. By automating payment workflows and using smart contracts, blockchain can minimize payment disputes and delays. VeChain, a blockchain platform, has been used to streamline payment processes in the construction industry, reducing administrative burdens and improving cash flow (Petrović et al., 2022). The Internet of Things (IoT) also offers significant opportunities for solving supply chain problems in the construction industry. According to Perwej et al. (2019), IoT technology refers to a network of physical devices, sensors, and software that enables them to connect, communicate, and exchange data, leading to intelligent and automated decision-making. By connecting physical devices and equipment to the internet, IoT enables real-time data collection, analysis, and communication, leading to enhanced visibility and efficiency (Ikudayisi et al., 2023). One major challenge in construction supply chains is the lack of accurate and timely information about the location and condition of materials, equipment, and resources. IoT sensors and devices can address this by providing real-time tracking and monitoring capabilities (Perwej et al., 2019). For example, RFID tags and GPS trackers can be attached to construction materials and equipment, allowing project managers to precisely locate and monitor their movement throughout the supply chain. This reduces the risk of loss, theft, or misplacement of critical resources (Sardroud, 2012). Moreover, IoT-enabled sensors can collect data on environmental conditions, such as temperature, humidity, and vibration, ensuring that sensitive materials are stored and transported in optimal conditions (Ikudayisi et al., 2023). This helps maintain the quality and integrity of construction materials, reducing waste and rework. Additionally, IoT-based predictive maintenance systems can monitor the health and performance of machinery and equipment, detecting potential failures or malfunctions before they occur (Perwej et al., 2019). By proactively addressing maintenance needs, construction companies can minimize equipment downtime, avoid costly delays, and improve overall project productivity. For instance, Caterpillar, a global construction equipment manufacturer, has integrated IoT sensors into their machinery to monitor performance, predict maintenance needs, and optimize equipment utilization (Alam, 2021). Download 215.55 Kb. Share with your friends:
|