A model for visualizing cost shifts when introducing construction logistics setups

Abstract

PurposeThe purpose of this study is to identify how the responsibilities and costs of planning, controlling and executing the material, resource and waste flows are shifted between actors when introducing a construction logistics setup (CLS) as a product innovation in a construction project, compared to the traditional way of organizing these activities.Design/methodology/approachThis study is an analytical conceptual research study which aims to bring new insights into a problem through logical relationship building. Empirical data are gathered in two cases where CLSs are used, through observations and interviews regarding how the activities within the order-to-delivery process are performed. The results have been discussed at workshops with suppliers, installation companies, contractor firms and trade unions.FindingsThe outcome of this study is a model for illustrating how costs and responsibilities are shifted in the construction project and supply chain when a CLS is introduced. The cost shift is dependent on the activity shift that accompanies the services included in the setup.Practical implicationsThe practical contribution of this work is twofold. First, this study provides a methodology of how to evaluate the impact of logistics services on the actors in the construction project. Second, this study shows shifts in costs and responsibilities in logistics activities with the introduction of construction logistics services.Originality/valueThe theoretical contributions of the model and this study lie in the inclusion of a multi-actor perspective in total cost modelling in supply chains.