Supply Chain Management in the Construction Industry: Gilmor Engineering Limited case study.
By Emmanuel Ola Elehinle
Student I.D 15597305
Laureate Online Education & University of Liverpool – Online Masters Degree
In Partial fulfillment for the award of Master of Science (M.Sc.) Degree in Operations and Supply Chain Management
Activities in the execution of a construction project are usually time bound and require an effective management of the supply chain network to meet deadlines but the comparison of case studies and past research works shows that there are waste and problems in the construction supply chains which are characterized by inadequate ...view middle of the document...
The company started operations in Nigeria in 1999 and within a space of ten years; the company has grown in such a manner that surprise their contemporaries. To organize a Supply chain Management topic on a construction firm is a complicated one because a great numbers of activities and processes are not static. As noted by Ruben & Lauri (2000), “the generic body of knowledge accrued in the framework of SCM leads to improved understanding of the nature of construction supply chain problems, and provides direction for action. However, the practical methods for SCM implementation have to be developed so they take into account the characteristics and the specific situation of construction”. The survey and study conducted on Gilmor Engineering show that, the company has a very versatile and effective supply chain system which accounts for construction situations.
2. Customer relationship management
The demands in the construction industry in Nigeria usually come from various construction sites of the same company. The CRM discussed here therefore is that of the central procurement department and the construction sites within the same company. Gilmor Engineering puts in place and operates a management information system in 2004 after they won their third and the biggest project to develop the Guzape district infrastructures.
Their ERP system is known as “power 10”. The system supports all the essential functions of the supply chain of their construction business processes and operations efficiently and is tailored to specific needs of the company even to the servicing and management of their fleet of equipments, the processes of Demand Management, Order management, and Order fulfillments. “Power 10” links all the working sites to the central procurement department in Abuja where all order requests are trapped and selected for different suppliers. The customers in the context of this study are considered to be the various construction and working sites of the company.
2.1 Demand Management
The demand management process is what balances customer demand and the firm’s output capabilities. Most of the material demands of the various construction sites are unpredictable and they are usually urgent to be met. The management of the demands by the central Procurement department of the company in terms of new market discovery and forecast information is done also on “power 10”. The consumption of general materials like Iron rods, Cement and Diesel are usually evaluated from time to time because it varies. For instance, Guzape site alone consumed five full loads of 33 litres diesel tankers in just 2 weeks in the month of April 2010. The diesel supplier is made to be aware of this and has built it in its schedules and it has helped the company to link its forecast to it planning activities. The order fulfillment process must integrate closely with customer relationship management, customer service management, supplier relationship management.