Waste management

Software and the internet can really help out here. Managing the supply chain and logistics using a website or software is one way to increase efficiency on site and cut out waste. After all, the retail industry has been using technology for supply chain management for years, through the use of bar coding for stock control and to co-ordinate just-in-time deliveries.

One person you would expect to be positive about the construction industry and supply chain management software is Mike Branigan, managing director of Scio — a company launched in March to sell supply chain management software across a range of industries.

Branigan says that Scio decided to tackle construction because it had "extended and complex supply chains" and that "there is no one standard way to build a building so construction has that element of complexity. Supply chain management is also relatively new to construction."

But he is finding it hard work convincing the industry that his product can be of use. He says that the concept of supply chain management, let alone the software, has yet to be widely accepted. As a result of conversations with several top construction companies he believes caution is curbing innovation.

"There are tremendous gains to be had from more efficient supply chain management in construction, but one company or team has to put their toe in the water. One has to be the champion," says Branigan. "It is not happening to any significant degree. Everyone seems to be waiting for someone else to do it first."

"There are some examples," he concedes. "Bovis and logistics firm Unipart collaborated on a project in the City of London and achieved good results. Housebuilders are also starting to use components and off-site pre-fabrication to improve efficiency. So the desire is there, but progress is slow."

But there are a few other success stories. Canary Wharf Contractors is one. It has thrown away its paper-based system and is using a software package to control its crowded site at its second phase development in London's Docklands. With 300 deliveries a day and nearly 70 cranes and hoists on site, careful organisation is key.

Logistics manager Douglas Blackstock says he had used software to control deliveries in the past, but using it for cranes and hoists scheduling was a new experience. "We wanted to control our crane and hoist times, as well as material deliveries. We have very little space to move the plant around in and no space to have materials lying around if they are not needed. When you are building towers, your high-rise vertical transport is a valuable asset and it has to be controlled efficiently."

The package Canary Wharf decided on was The Logistics Business' Zone-Manager program. It was originally developed for industrial warehouse loading, but Blackstock says it had the flexibility to adapt to his needs. "It allows us to schedule cranes and hoist schedules in co-ordination with material deliveries. The cranes are hired so time is at a premium."

There are tremendous gains to be had from more efficient supply chain management but one team has to put their toe in the water

Mike Branigan, MD, Scio

The site is divided into zones. Contractors can then book a zone for a delivery or plant. Each truck that turns up on site is allocated a zone and then waits in a holding area. When its slot is available the truck is then directed to its zone to unload. Materials are transferred by crane or hoist directly to the workface.

Tony Shaughnessy, also a logistics manager at Canary Wharf, says the program has increased productivity on site. "All the trade contractors can plan their deliveries and gear up their work and suppliers accordingly. They can book a crane, hoist or delivery spot up to six months in advance, so it gives them plenty of time to organise their workforce. They can plan work and breaks around their delivery slots."

"Previously these functions had been run on a day-to-day basis and it was a bit hit and miss," he says. " Often there were long queues of lorries and people waiting around for deliveries before they could start work. Using this program avoids those problems. The only drawback is that if someone misses their slot, it can be difficult to fit them in." But he adds that some suppliers are happy for their deliveries to arrive up to two hours early and wait in the lorry park to ensure they made their slot.

Shaughnessy adds that the feedback from trade contractors was favourable. "Everyone knows where they stand and can make allowances for the schedule. It is acknowledged that it has made a big improvement."

It wasn't just a case of installing the software and managing the process was key to its success he says. "To start with contractors were booking a zone for two hours to unload any delivery, whether it came on an artic or in a van, because these slots are valuable. I had to make sure they were being realistic about the time they needed with deliveries. Also, some contractors would always book

9-10 am each day and not always turn up for the slot. So it is important to monitor what's going on and jump on any abuses. But once everyone is accustomed to how the system operates, it works very well and compares favourably to using other methods."

"It makes life easier," adds Shaughnessy "because everyone knows what is happening — rather than just one person holding the knowledge and not necessarily passing it down the line to all their workers. We print out the daily schedule for all contractors so everyone from the managers to the workers knows what is going on."

The Logistics Business provided half a day's training as part of the package. Implementation took one month, after customising the system to Canary Wharf's needs. It cost between £15,000 — £20,000 for a 12-user licence. The Zone-Manager program starts from around £5000.