Improving project performance through logistics outsourcing in an urban construction project A case study at Veidekke
Examensarbete för masterexamen
Design and construction project management (MPDCM), MSc
The enhanced desire of living in urban areas contributes to increased demands for housing. Building in dense areas often lead to logistical challenges since the amount of space is limited. Additionally, previous research claim that productivity is low within construction projects and not following productivity developments in other industries. Both rearrangements of construction logistics and implementation of supplychainmanagementisarguedtobepossiblesolutionstoincreaseperformance of the construction supply chain. Therefore, this thesis aims to investigate how outsourcing of logistics can improve the performance of the construction supply chain, as one way to increase the productivity in a dense city construction project. The study contributes to the understanding of the eﬀects of applying third party logistics to the principles of supply chain management in construction. In order to reach results that align with the aim, an abductive research approach is chosen. Observations from a case study at one of Veidekke’s construction projects has been executed, together with interviews and discussions. In total, nine interviews have been conducted. The ﬁndings from the study shows that by outsourcing logistics, the workers at the project can focus on executing value adding work tasks leading to increased productivity. Outsourcing of materials handling relieves one hour every day for the construction workers. It is found that a supervisor spend approximately 22 hours during a week on activities that can be outsourced to a TPL-company. If these activities are outsourced, the supervisor can spend this time on planning for future activities in detail. More detailed planning will reduce the risk of unforeseen problemsthatcanhindertheproductivity. Byplanningeveryactivityindetail,theneed to havetime buﬀers in the schedule will not be necessary. TPL-services can to some extenthelpachievesupplychainmanagementwithintheconstructionsupplychains. It is concluded that, to fully achieve construction supply chain management, one must also enhance the standardisation further. The results in this thesis provides Veidekke with suggestions that can increase the productivity of their projects.
Construction Logistics , Construction Supply Chain Management , Project Performance , Third Party Logistics