Academia.eduAcademia.edu

Figure 1 – uploaded by Ruben Vrijhoef

See full PDFdownloadDownload figure
Figure 1: Basic transaction model; value, price and costs (De Ridder & Vrijhoef 2003, 2004, 2005)

Figure 1 Basic transaction model; value, price and costs (De Ridder & Vrijhoef 2003, 2004, 2005)

Related Figures (7)

Figure 2: Strategies to increase the total benefit (De Ridder & Vrijhoef 2003, 2004, 2005) Be - i — ee In order to ‘combine the ‘interests of both clients and suppliers, two basic strategies are optional, based on a collaborative approach (Figure 2). These strategies are firstly aimed at the increase of the total benefit (value minus costs), and then on sharing the benefit. In construction, this is often organised in a collaborative and dynamic process between suppliers and clients. This requires faith and trust of both clients and suppliers in a “dynamic approach” to define value, costs and price in a collaborative process, resulting in benefit for both.
Figure 2: Strategies to increase the total benefit (De Ridder & Vrijhoef 2003, 2004, 2005) Be - i — ee In order to ‘combine the ‘interests of both clients and suppliers, two basic strategies are optional, based on a collaborative approach (Figure 2). These strategies are firstly aimed at the increase of the total benefit (value minus costs), and then on sharing the benefit. In construction, this is often organised in a collaborative and dynamic process between suppliers and clients. This requires faith and trust of both clients and suppliers in a “dynamic approach” to define value, costs and price in a collaborative process, resulting in benefit for both.
a, ae a re i, > ae 5 rs When the above model and strategies are extended through the supply chain, basically the model will include multiple parties and thus multiple transactions (Figure 3). The strategy will then have to be collectively grounded, and must be aimed at achieving collective benefit for all parties. The complexity increases with the number of parties involved, and so does the level of coordination of parties.
a, ae a re i, > ae 5 rs When the above model and strategies are extended through the supply chain, basically the model will include multiple parties and thus multiple transactions (Figure 3). The strategy will then have to be collectively grounded, and must be aimed at achieving collective benefit for all parties. The complexity increases with the number of parties involved, and so does the level of coordination of parties.
Figure 4: Value demand and supply system in construction (De Ridder & Vrijhoef 2003, 2004)
Figure 4: Value demand and supply system in construction (De Ridder & Vrijhoef 2003, 2004)
Compared to manufacturing, the demand and supply systems in construction are quite incoherent, divergent, variable and inhomogeneous. Normally, the manufacturing value system is more uniform and aligned (Figure 5). The connection between clients and suppliers is often also more formalised and structured. In construction, the client and other stakeholders at the demand side are relatively largely involved in the production process, particularly in the briefing, specification and design phases. In this sense, construction is rather “pull” driven by nature, but not well integrated. Manufacturing is more “push” driven, and mostly well integrated.
Compared to manufacturing, the demand and supply systems in construction are quite incoherent, divergent, variable and inhomogeneous. Normally, the manufacturing value system is more uniform and aligned (Figure 5). The connection between clients and suppliers is often also more formalised and structured. In construction, the client and other stakeholders at the demand side are relatively largely involved in the production process, particularly in the briefing, specification and design phases. In this sense, construction is rather “pull” driven by nature, but not well integrated. Manufacturing is more “push” driven, and mostly well integrated.
Figure 6: The central role of the demand and supply system integrator
Figure 6: The central role of the demand and supply system integrator
n these cases, procurement strategies must therefore be aimed at establishing long- erm relationships in the supply chain. Therefore, the client needs to the impact of his ole on the supply chain, and the importance of the procurement methods used. While onstruction is still project driven, obviously, there is lack of comprehensive ruidelines for managing multi-projects in construction (Abdullah & Vicridge 1999). Towever, some advanced and professional clients with “buying power” have created nulti-project environments and manage their procurement through a_ portfolio ipproach, aimed at the increase of repetition and creating similarities between nultiple projects, and thus increasing the degree of project certainty and “supply chain tability” (Blismas et al 2004). In some cases, clients have successfully introduced a trategic long-term approach to procurement, which has proved to be particularly -ffective for certain sectors in construction (Cox & Townsend 1998). These strategic ipproaches have led to integration of project activities in packages procured to ntegrated supply chains or “clusters” of firms for longer periods of time. In all cases, his has been achieved by applying alternative procurement methods, such as prime ontracting and framework agreements, and alternative contract formats, such as PFI n “DBFMOT” kinds of contracts (Nicolini et al 2001, Ndekugri & Corbett 2004).
n these cases, procurement strategies must therefore be aimed at establishing long- erm relationships in the supply chain. Therefore, the client needs to the impact of his ole on the supply chain, and the importance of the procurement methods used. While onstruction is still project driven, obviously, there is lack of comprehensive ruidelines for managing multi-projects in construction (Abdullah & Vicridge 1999). Towever, some advanced and professional clients with “buying power” have created nulti-project environments and manage their procurement through a_ portfolio ipproach, aimed at the increase of repetition and creating similarities between nultiple projects, and thus increasing the degree of project certainty and “supply chain tability” (Blismas et al 2004). In some cases, clients have successfully introduced a trategic long-term approach to procurement, which has proved to be particularly -ffective for certain sectors in construction (Cox & Townsend 1998). These strategic ipproaches have led to integration of project activities in packages procured to ntegrated supply chains or “clusters” of firms for longer periods of time. In all cases, his has been achieved by applying alternative procurement methods, such as prime ontracting and framework agreements, and alternative contract formats, such as PFI n “DBFMOT” kinds of contracts (Nicolini et al 2001, Ndekugri & Corbett 2004).
Figure 8: The role of the supply system integrator
Figure 8: The role of the supply system integrator
Related topics:
Supply Chain IntegrationConstruction Supply ChainDemand Systems
580 California St., Suite 400
San Francisco, CA, 94104
© 2025 Academia. All rights reserved