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Introduction to supply chains in the construction industry

Introduction to supply chains in the construction industry by Arjen Adriaanse.
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ARJEN ADRIAANSE: Welcome to the final week of the course about supply chain innovation. In this week, we will discuss a specific industry, the construction industry. I will do this together with my colleague Hans Voordijk. The construction industry is large. It accounts for about 5% of the gross domestic product. However, the actual economic importance is much higher. The construction industry uses a lot of services and products from other industries that are not included in this 5%. If you include the contributions of consultants, designers, and suppliers, the construction industry becomes one of the largest industries of the national economy. The construction industry is also very diverse. It includes buildings, like houses, office buildings, and hospitals. But also roads, bridges, and tunnels.
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These buildings don’t emerge out of nothing. A lot of activities need to come together in order to realise them. But the way this happens differs a lot from other industries. As a result, the construction industry has some unique problems and challenges to deal with. That is certainly the case for the supply chain and the way logistic processes are organised. In this week, we will discuss supply chain innovation in construction in three activities. In the first activity, we will answer the question, what makes a construction supply chain and logistics unique? We will highlight several aspects that make the construction supply chain different compared to chains in other sectors. In the second activity, we’ll discuss an important trend, urbanisation and inner-city construction.
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In the former course week, exam, we already discussed the trend towards urbanisation. The importance of inner-city construction is, of course, directly related to urbanisation. We will discuss the challenges related to building in urbanised areas, and show an interesting case from practise. Finally, in the last activity, we will look at some possible solutions to improve the supply chain and logistics of the construction industry. What are important initiatives to watch supply chain innovation in construction?
The construction industry is large. It accounts for about 5% of the gross domestic product in European countries.
Buildings don’t emerge out of nothing. A lot of activities need to come together in order to realise them. But the way this happens differs a lot from other industries. As a result, the construction industry has some unique problems and challenges to deal with. In this week we will discuss some solutions to these challenges.
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