Research On The Mode Of Construction Project Purchase Based On Supply Chain Management

The companies of our world will face more complicated and drastic market competitions in the 21st century. And the competition mode is transferring to supply chain. The design and management of supply chain has become the important, the more and the basic power to compete in the society. Procurement is the start of the whole logistic activities. Procurement management is the key factor to the prosperous of structure projects. Presently, many projects are facing the question: how to improve their procurement management based on supply chain management.Procurement is an important part of construction management. It will have a great impact on the construction project. Traditional procurement approach employed by contractor usually focus on how to trade with the supplier. Each side tries to maximize his interest. It will cause such problem as high volume of inventory, unnecessary transaction cost, non-coordination cost and so on. Supply chain management that is characterized by systematic view can furnish us with the tool resolving these problems. Therefore I contribute a new approach for procurement in construction industry.Here I focus on how to apply the philosophy of supply chain management to the procurement in construction. Based on thorough study of related research material, this paper initiates the concept of new approach for procurement, implement the new method and study the case.First the construction supply chain's definition, characteristics, and the structure model are present. Based on distinguishing supply chain management model, the characteristics of procurement in construction supply chain management t have been put forward. Then how procurement will affect the cost of the whole construction supply chain was analyzed. How to implement the new procurement mode by the means of supply chain management is the essential of the thesis. As a premise, I introduce the function of partnership in the construction procurement process. Then JIT procurement, pooled procurement, third party logistics procurement and vendor manage inventory which proved t o be practicable in construction industry are present. The information technology in construction procurement implementing the philosophy of supply chain management was also studied. At last, I introduced a case implementing the new way of procurement by airport. The value drivers that contribute to the benefits of supply chain were analyzed.I just wish this thesis could provide some enlightenment to improve the performance of construction supply chain by the new procurement approach.