Managing the logistics activities within construction has to take account
of the way that many projects are developed and organized and the resulting
implications for the supply chain structure. A recent report ( BIS, 2013 ) identifi
ed very high levels of fragmentation in relatively simple packages of work
– particularly at the Tier 2 and 3 levels of fi nal transactions with suppliers. 1
Construction projects involve very high volumes of purchasing activity and
supplier coordination. This has a major impact on the way in which logistics
management needs to work.
There are many reasons for this structure and the BIS (2013 ) report
referred to above stressed that developments in technology could encourage
even higher levels of fragmentation in view of the increasing complexity of
the technology used in construction products and services. The building services
supply chain was noted to be an example of this.