Optimizing efficiency and cost through dedicated logistics management in construction projects

Abstract

The research identifies that the absence of a specialized logistics team in construction projects leads to tradesmen handling materials, which results in inefficiencies, project delays, compromised deliverable quality, and increased costs due to the misallocation of responsibilities and lack of strategic logistics involvement. The aim of this research study is to provide valuable insights into the tangible benefits of incorporating a dedicated logistics team into construction projects. To gain this insight, it is important to examine how a dedicated logistics management team influences the overall efficiency and cost effectiveness of construction projects, as well as to analyze the challenges of what this team encounters and best practices to increase efficiency of the team. The research draws on the literature that supports this insight in order to get a richer understanding of dedicated logistics management team involvement in construction. The method applied is research based on interviews with construction professionals, surveys taken by professionals worldwide within the industry, and observations from a single construction project case study in Gothenburg, Sweden. The analysis of this observation involved the use of Six Sigma Method and SCOR model frameworks as well as regular consultation with a third-party logistics (TPL) provider based in Gothenburg, Sweden. The findings provide valuable information on how implementation of dedicated logistics management team in the construction project affects the efficiency of the process. The findings also show how investing in a dedicated logistics team from the initial phase of the project justifies the overall project cost, which leads to cost savings in the overall project outcome.