Logistics Performance Measurement System for Construction Supply Chains - A Case Study at a Large Swedish Construction Company

Examensarbete för masterexamen
Master Thesis
Supply chain management (MPSCM), MSc
Zetterberg, Andreas
Minges, Jonas
Logistics management in a construction supply chain can be seen as a key competitive factor due to the importance of perfect deliveries towards construction sites. The increased importance of logistics in construction supply chains explains why the evaluation of logistics effectiveness and efficiency is gaining increased attention. Logistics performance management is the key to quantifying the current state and improvement potentials within logistics. In order to ensure that the logistics of a supply chain is performing well, it is crucial that the company measures different aspects of the logistics flow of the supply chain. As stated by Sink and Tuttle (1989): "You cannot manage if you cannot measure. If you do not measure you do not know what you have achieved and where you are headed". This master thesis aims to investigate and give suggestions on how to measure the logistics performance of a construction supply chain. This can also be seen in the research questions of this report, which are "How should a logistics performance measurement system for a construction supply chain be designed?” and “Which KPIs should be included in a logistics performance measurement system of a construction supply chain”?. This master thesis is based on a case study at a large Swedish construction company. Thereby the key performance indicators (KPIs) related to the logistic processes in a construction supply chain were examined. One of the main findings of this master thesis is the creation of a conceptual framework, which focused on the design of a logistics performance measurement system (PMS). The framework takes company, industry, and supply chain characteristics into consideration, and designs the logistics PMS around those findings. The conceptual framework made it possible to identify four supply chain dimensions that should be covered when designing a logistics PMS for construction supply chains: supply chain reliability, efficiency, responsiveness, and sustainability. Furthermore, six strategic KPIs were identified that should help construction supply chains to measure their logistics performance. These KPIs were: perfect order fulfillment, fill rate, transportation cost per ton-km, backlog, customer ordering lead time, and CO2 emission per ton-km.
Transport , Övrig industriell teknik och ekonomi , Transport , Other industrial engineering and economics
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