Receipt date: 05/02/2022 / Revision date: 18/03/2022 / Acceptance date: 28/04/2022

Introduction

For construction, logistics management is an area of vital importance for the continuous improvement of supply, production and resource distribution processes; therefore, it is necessary for the constructor to appropriate the content of this area of knowledge in order to not only standardize procedures, but also to optimize the support times of the works and everything related to the assignment of specific roles and functions to carry out the approaches that are postulated in the logistics plans for the administration and control of resources.

Problem statement

Supply Chain Management (SCM), better known as "Procurement Supply Chain Management", is a relatively new concept; it can be defined as

A network of means of distribution of facilities whose function is based on obtaining materials, converting them into finished products and the corresponding distribution in the market; it can be said that the CA concentrates on three fundamental elements: supply, manufacture (production) and distribution (marketing) (Malagón et al. 2012, pp 12). 

Knowledge management in the supply chain in the construction sector has particular characteristics, which can be identified as preconstruction: stage that includes all the activities prior to the start of the project; construction: stage that is linked to the development of coordination tasks of all the parties involved, such as the permanent control of time, costs and quality. And finally the dissolution stage, related to managing the transfer of knowledge from two perspectives; project to project and company project, so they are configured for each construction project, since each one will imply certain requirements from the client of an infrastructure or construction element (Capó, 2005, p. 3).

Consequently, the management of this supply process becomes of vital importance to perceive the conformation, coordination and management of the CA of each of the construction projects.

Supply management in the construction industry in Colombia has been characterized by considerable delays with respect to other industries in the area of planning, specifically due to the lack of standardization, measurement and control of processes, considering that support activities such as procurement, reception and storage of resources represent slightly more than 20% of the time spent on construction activities. (Fonseca, 2011, p. 25).

In addition, many of the losses in projects are caused by long waiting times due to the deficit of such support activities, which means that 31% of the time spent is susceptible to be reduced through the applied logistics management approach. (Fonseca, 2011, p. 25).

Therefore, this research analyzes the main characteristics of the supply chain in high-rise housing construction SMEs in the city of Medellin; and its implementation within these organizations; in order to identify the problems presented in the logistics used for the supply of materials in the processes of execution of a work.

Theoretical framework

The construction industry has one of the largest contributions to the world GDP causing a great impact on productivity and world economic indicators; in the case of Colombia, the Technical Bulletin of the National Administrative Department of Statistics (DANE) on "Economic indicators around construction - IEAC" for the second quarter 2018 - 2019, showed a positive increase to the GDP by different countries, within which Colombia stands out with an increase of 0.6%. (Economic, 2019).

Taking into account such statistics, this work focused on the importance of targeting the shortcomings that occur in the field of construction at different scales; in this case, the failure in the project planning process was addressed, since, Zou (2017), states that the determining factors of the level of efficiency of these in the field of construction are located in the initial stages (p. 89); that is why, one of the focuses of greater attention in front of such planning led to the possibility of using new technologies and methodologies. 

Therefore, taking as a central focus the improvement of the efficiency level of project planning, Supply Chain Management, used in several industrial sectors as a tool to achieve a rational and systematic integration between suppliers, customers and the company as such, is proposed as a new methodology. 

Consequently, the joint work of all these elements aims at improving the conditions of delivery, quality and timeliness; the purchasing work plan being objective, anticipating needs, guaranteeing better prices, quality, timely delivery, delivery times, compliance with specifications, stock rotation, avoiding the risk of obsolescence, alternative sources of supply, purchase contracts, favorable relations with suppliers, purchasing templates, personnel training, information recording and integration with the other areas of the company. (Ferrín, 2007). 

Based on the above, Capó (2007) states that it is necessary to work with more specialized contractors in the construction processes, leaving aside the concern for the price war and concentrating on delivering projects in which execution times are optimized and quality is guaranteed. To this end, the interaction of the links in the construction supply chain should be taken into account, describing the levels and characteristics of their integration, as follows: at the first level, contractors and consultants: because they generate and deliver vital information in the design and specification phases, having clear laws applicable to the projects and proven experience. In the second level we found the subcontractors who are employed for their level of experience in different phases of the project; in third place, the suppliers of construction materials that can range from hardware stores to high level specialized marketers; and finally the producers of the aforementioned materials. (London, 2001). 

Based on the above, layout planning and CA management in the construction sector becomes a vitally important tool. 

 Layout planning refers to the planning of the distribution and location of facilities applicable to new and existing plants, which are part of the logistics applied to the optimization of the sites where production processes are carried out; its objective "for the effective conformation of an optimal supply chain is to minimize time and displacements and facilitate the location of products" (Fonseca, 2011, p. 44). According to the Polytechnic University of the Bicentennial (2017), the flow of materials must be incorporated into the study of this distribution, organizing it in a rational way and establishing a series of phases that allow the identification, assessment and visualization of all the elements involved in this implementation. 

Therefore, with the intention of carrying out the layout planning regarding the conformation of a CA, the Lean Construction (LC) philosophy is proposed, which according to the Lean Construction Institute (ILC), is oriented towards the management of production in construction and its main objective is to reduce or eliminate the activities that do not add value to the project and optimize the activities that do, therefore it focuses mainly on creating specific tools applied to the project execution process. (Lean Construction Institute, 2013).

The functionality of the application of the tools is in the creation of a production system that minimizes waste, which would be activities that do not add value to the project, and which will be defined as: everything that does not generate value to the activities necessary to complete a productive unit, classified into seven categories: defects, delays, excess processing, excess production, excessive inventories, unnecessary transportation and non-useful movement of people; which are not taken into account in the daily management where it is considered only as a transformation process to obtain a product and the optimization of flows of such materials is left in the background. 

Therefore, the "Lean" philosophy takes into account the transformation of materials as a flow of resources and a generation of value, for example, in the manufacture of a wall, bricks bonded with mortar are transformed into square meters of wall, the flow is the putting of resources and materials to elaborate the wall and the value is the amount of square meters of wall that are achieved in a certain time (Porras et al., 2014). 

Consequently, Koskela (2000) proposes eleven principles for their operation:  

• Reduction or elimination of activities that do not add value.
• Increase in the value of the product.
• Reduction of variability.
• Reduction of cycle time.
• Process simplification.
• Increased production flexibility.
• Transparency of the process.
• Control approach to the complete process.
• Continuous process improvement.
• Balance of flow improvement with conversion improvement.
• Referencing.

These "Lean" principles, are only possible to apply effectively in the construction industry if stakeholders focus on improving the entire project management process to devise the new production approach proposed by these principles (Arif, 2012, p. 91). To implement CA in projects it is necessary to start with the commitment to have a culture of continuous production improvement, so that by applying the "Lean" principles correctly improve the safety, quality and efficiency of the project (Hamed, 2013). 

Lean construction is a philosophy that is oriented towards production management in construction and its main objective is to reduce or eliminate activities that do not add value to the project and optimize the activities that do, therefore it focuses mainly on creating specific tools applied to the project execution process and a good production system that minimizes waste (Lean Construction Institute, 2013). Waste is understood as everything that does not generate value to the activities necessary to complete a productive unit.

The objective of LC is to optimize transformations by minimizing or eliminating the flows that materials must follow to the sites of execution of the works to obtain more value in the final products (Orihuela, 2013, p. 1). One of the most effective ways to increase efficiency in construction is to improve the planning and control process. In the LC philosophy, planning and control are complementary and dynamic processes, where planning defines the criteria and creates the strategies needed to achieve the project objectives and control ensures that each event will occur after the planned sequence (Fayek, 2013). 

 On the other hand, in the administrative processes involved in the materials procurement process, we find planning as a fundamental factor; the latter refers to the identification of each of the materials required for the construction of the project, as well as the quantification of the quantity of each one required, including waste or scrap. 

Then, during execution, the purchase of materials begins with the order, which has as its initial event the request made by the production area of the supervision residence for a quantity (or lot) of one or several materials; this request is addressed to the administrative area and is usually called requisition in the language of construction. Once the supplier places the material on site, the construction company employee in charge of the warehouse proceeds to verify its specifications, completeness and quantity. 

Finally, control consists of the establishment of systems that make it possible to compare what has been executed with what was planned, detect errors, deviations, as well as the causes and possible solutions, all of which makes it possible to take timely corrective actions to improve or maintain the project's good performance. (Isidore, 2002).

To control variability in planning, the LC philosophy proposes the Last Planner System (LPS), one of the most useful tools in the application of LC.

After an approach to the conceptual and theoretical bases of this topic, the legal framework under which CA management is based is discussed. ISO 28000 is a management system specification that provides, for the first time, a model for all types and sizes of organizations that operate or depend on any aspect of the supply chain, this standard is compatible with ISO 9001 and ISO 14001. ISO 28000 was developed with the purpose of contributing to the integration of quality, environmental and CA safety management systems within the organization. (Colombian Technical Standard, ISO 28000, 2007).

State of the art

Initially, there is a study conducted in 2019 regarding the coverage and coordination of the different periods contained in the CA, focusing on prefabricated construction; from this, they implement a strategy called buffer space coverage which increases the accuracy of Lean Production (LP) which involves the additional costs that may arise due to storage and maintenance issues. Within the results obtained, it was observed that through these two methods it is allowed to have benefits, at a lower cost of unit expansion, higher penalty for tardiness and unpredictable and uncontrollable assembled and installed prefabricated determined by the construction process (Zhai, 2018). 

Studies have been conducted on the coordination, supplier selection and scheduling of projects in construction CA when resources are limited, based on multiple recurring projects which are independent in operation, but are subject to shared suppliers and quality inspection by the same committee. For the solution of this problem, a heuristic based on mathematical programming is proposed, which manages to decompose the problems into subproblems, -that is, it reduces their size-, which contributes to solve them more quickly and the benefits of coordination can be foreseen (Chen, 2018). 

Research has also been done to understand the importance of customer-supplier relationships in the CA through a technique called DEMATEL; where the most important barriers that prevent collaboration in the relationship between both parties were studied. Through this technique, it is possible to obtain cause and effect associations; among the causes, three were found that are caused by the industry, and another that is mainly linked to the definition of roles and responsibilities of a project, thus impacting collaboration within the construction field (Costa, 2019).

Another study is related to the green management of CA in construction, in this research a literature survey is made where the results are synthesized for the categorization of the comprehensive approach and definition describing the need to emphasize on an end-to-end perspective that allows greening the industry, i.e., obtaining environmental sustainability (Badi, 2019). 

On the other hand, a research was raised where a process reference model is created for claims management in construction CAs regarding contractors; in this way, analyzing the already existing models, the established one tries to improve the claims process by identifying deficiencies such as the lack of transactions between the contractor and the supply chain; with the intention to increase the awareness of this relationship through supply chain management (Stamatiou, 2019).

In another project, in addition, the risks and delays that occur in CA management were studied; by reviewing literature and obtaining details of specific construction projects, thus having an event-based simulation that allowed to see the performance of the system, discovering that construction delays influence both the magnitude and probability of disruption (Panova, 2018).  

Also, a research was conducted where CA is integrated in construction within a circular economy; within this study a computational tool based on BIM (Building Information Modeling) is developed, such tool is a construction waste prediction model called ANFIS (Adaptive Neurofuzzy Inference System) in the Autodesk Revit BIM platform. The study yielded that gross floor area and construction type are the two key predictors of waste minimization (Akinade, 2019).

In the city of Bogota (Colombia), a study was made of all construction companies, focusing on the failures or problems in supply logistics in this area and possible improvements. Within the analysis based on the SCOR model, it was found that the main problems in the supply logistics of construction companies in Bogota are inventory control and management, poor storage and lack of information systems (Arce, 2009).

In conclusion, and in relation to the topic of CA, different studies have been conducted by authors around the world in places such as London, Italy, United States, Sweden, Bogota, among others. These allow us to foresee that the approaches to CA are varied, and that, within them, this research focuses on understanding this tool for the planning of construction projects in the city of Medellin.

Method

With the intention of analyzing CA Management in the construction sector as a project planning tool, information collection was carried out through the descriptive survey technique, with 41 questions in total, of which 33 are closed response and 8 open response; conducted between March 28, 2019 and May 9, 2019. The purpose of this study is to obtain the most evident causes and problems that arise within the work in terms of the object of study, which is Supply Chain Management. Through these surveys, data were obtained, which were then tabulated, graphed and analyzed, taking into account the type of population coverage at which this research was focused, with a quantitative, non-experimental and probabilistic sample approach.  

Having said the above, the selected population was the construction SMEs in the city of Medellin; focused on high-rise housing. According to CAMACOL Antioquia's classification, there were 20 companies that met these characteristics. Once the population was established, a formula was applied, which yielded a total of 17 companies that were the working sample. Based on the above, within these organizations, the profiles of the people involved in the CA were selected, which were: the construction manager, the construction resident, the residence assistant, the master builder, the warehouseman, among others. 

From the selected population, each company had one person who responded to the survey, which were related to the following profiles: 7 construction managers; 2 residence assistants; 2 budget managers; 1 construction resident; 1 warehouseman; 1 warehouseman; 1 CEO; 1 budget resident; 1 PPM manager; 1 procurement manager; 1 consultant and teacher; and 1 administrative assistant. 

To calculate the sample size when the universe is finite, i.e. countable and the variable is categorical, you must first know "N", i.e. the total number of cases expected or that have occurred in previous years. If the population is finite, i.e. we know the total population and we want to know how many of the total we will have to study, the formula would be:

Where:

N = total population.

Zα = 1.96 squared (if safety is 95%).

p = expected proportion (in this case 5% = 0.05).

q = 1 -p (in this case 1-0.05 = 0.95).

d = precision (in the research use 5%).

 

In order to understand the results, the Pareto diagram and the root cause analysis were implemented, which made it possible to show in the surveys which were the most relevant causes or problems and which are their logistic and resource supply processes, taking into account the 80/20 rule, thus being able to propose processes for the improvement of the shortcomings presented.   

The Pareto diagram is a bar chart that helps to identify priorities and causes, since the different problems that arise in a process are arranged in order of importance; its field of analysis or application is categorical data, and its objective is to help locate the vital problem or problems, as well as their main causes. The idea is that when we want to improve a process or address its problems, we work on all the problems at the same time, attacking all their causes at the same time, but rather, based on the data and information provided by a statistical analysis, we establish priorities and focus our efforts where they have the greatest impact (Gutiérrez & de la Vara, 2009).

The viability and general usefulness of the diagram is supported by the so-called Pareto principle, known as the "80-20 Law", which recognizes that few elements (20%) generate most of the effect (80%), and the rest of the elements generate very little of the total effect (Gutiérrez & de la Vara, 2009). 

On the other hand, there is the root cause analysis tool, whose goal is to identify the root causes of the problem, understand how they generate the problem and confirm the causes with data. Then, it is a matter of understanding how and why the problem is generated, seeking to get to the deepest causes and confirming them with data. To do this, it will first be necessary to identify all the input variables and/or possible causes of the problem (Gutiérrez & de la Vara, 2009). 

Finally, the Ishikawa or cause and effect diagram, which is a method that relates a problem or effect with the factors or causes that possibly generate it. The importance of this diagram lies in the fact that it forces us to look for the different causes that affect the problem under analysis, thus avoiding the mistake of looking directly for solutions without questioning what the real causes are (Gutiérrez & de la Vara, 2009).

Figure 1. Concept map methodology 
 

Results

Once the measurement instruments were applied in each of the construction companies duly selected according to the characteristics of the study, the following results were identified.

Figure 2 illustrates the general knowledge and management of CA management in the construction sector, in which 4 variables associated with the subject are given, showing that 63.2% of the sample surveyed did not respond, which could be interpreted as one of the main causes that directly influences the lack of productivity, if it is understood that CA is structured as the efficient combination of production processes and delivery of services.

Figure 2. Supply chain management

 

Additionally, in Figure 3, the previous knowledge of the construction companies on the subject of supply logistics was evaluated, in which it can be observed that 21.05% of the surveyed sample has no knowledge and 42.12% of the sample does not respond. This leads to a considerable deficit in the planning, organization and control of resources.  

Figure 3. Knowledge of supply logistics

 

On the other hand, Figure 4 shows an 80/20 analysis that allows us to know which are the shortcomings of the CA within the surveyed companies. Noting that these difficulties are related to suppliers, tools and equipment, lack of planning and prerequisites. It should be noted that the design of the CA varies according to the type of company and is composed of the logistics phases of suppliers, production, distributors and customers. 

Figure 4. Shortcomings in the CA

 

Figure 5 illustrates the main causes of delays in delivery times at the construction site. Of the eight causes that have an impact on delays in delivery times, five of them account for 78% of the negative effects of this problem, distributed as follows: 26% are related to delays in deliveries by suppliers; 15% to lack of supply of materials; the next 15% to shortage of resources; 10% to lack of control in planning; and the other 10% to environmental factors.  

Figure 5. Causes of delays in delivery times at the construction site

 

On the other hand, Figure 6 highlights the importance of the purchasing area within the CA, since one of the main sources of complexity of the construction activity is the use of many resources, and in large quantities; hence the requirement for all organizations to have a system that allows them to manage the resources used in this activity. 

Figure 6. Cause-effect diagram of shortcomings in materials procurement 

 

The process of purchasing materials begins at the planning stage, when the programs for the use of each material are drawn up. However, in the investigation it was reported that 67% of the companies stated that they prepared their programs for the use of materials before the beginning of the execution of the work; additionally, it could be inferred that 71% of the companies did not analyze in detail the construction processes to obtain these programs, so it could be expected that in most cases the management of materials has been deficient.

Similarly, Figure 7 analyzes the distribution process or internal transportation of materials, which is a fundamental part of the supply chain, since it can have a fundamental impact on the overall success of the CA. This must be related to the materials collection center, which must be located in an optimal site, be designed according to the nature and operations to be performed on the product, use the necessary equipment and be supported by an adequate organization and information system.

Figure 7. Cause-effect diagram of material distribution shortcomings

 

However, the research revealed that one of the shortcomings in distribution is that the locations of the materials are not known, which leads to longer handling times and, therefore, longer delivery times to the customer. 

Additionally, only 33% of the surveyed companies recognize and implement the objectives of the design and layout of the warehouses, since they facilitate the speed of order preparation, the accuracy of the same and the more efficient placement of materials, all in favor of achieving the competitive advantages contemplated in the strategic plan of the organization, regularly achieving faster order cycles and better customer service. 

Finally, Figure 8 analyzes the implementation of Lean Construction in the CA as a methodology for the elimination of losses, where it is evident that it brings different benefits for the processes carried out in the execution and planning process of the works, among which are the control of production and work, promotes the flow of transformation, helps to stabilize production, promotes effective relationships between the parties involved, among others. 

Figure 8. Cause-effect diagram of Lean Construction implementation

Discussion and conclusions

Supply chain management is becoming increasingly relevant in the efficient improvement of production processes and is considered as a measure to implement and consolidate in the search to enhance and increase profits through cost reduction and customer satisfaction (Keat, 2004). For this purpose, it should be taken into account that the CA is based on three fundamental pillars: suppliers, order delivery and warehousing. 

Among the results found, it can be seen that 63.2% of these entities omit to respond to the knowledge they have about the CA, which suggests a possible reason why the control of these three fundamental pillars is deficient. 

Thus, 35% of the sample affirms that the CA's shortcomings are related to suppliers and 24% to tools and equipment, which suggests a relationship with the pillars mentioned above. It should be taken into account that one of the most important tasks in the purchasing area is the selection of suppliers, since they are in charge of supply and must guarantee timely, quality deliveries with the best commercial conditions. 

Additionally, the third pillar is also affected as a consequence of the impact generated in the first two, taking into account that in the process of supplying materials when one or more of them are not available at the time they are required, this has a negative impact on the productivity of labor and equipment. As a result, it generates the interruption of work with a probable increase in total overhead costs. It should be noted that in Colombia there are no measures of productivity losses associated with materials, which is one of the most important factors to consider in the management of material inventories (Sherpell, 2002, pp. 291). 

Consequently, efficient materials management has become a priority where efficiency in industrial and production processes is an imperative. An adequate materials handling system can be used to increase productivity and achieve a competitive advantage in the market (Arce, 2009, pp 98). It is evident from the research that the shortcomings stem from the fact that in the distribution process the location of the materials is not known and only 33% of the sample recognizes that it implements the objectives of design and layout of the warehouses, which suggests the speed of the separation of materials and their accuracy. 

Consequently, one of the main reasons that these three fundamental pillars of the CA are affected, initially comes from the lack of knowledge of the CA as a tool that can benefit the planning within the works and the implementation of distribution standards that start with the reception of resources, storage and transportation within the storage site to the final work site, having as main objective to optimize the logistics area; since by reducing the distribution times, the waiting times improve distribution that starts with the reception of resources, storage and transportation within the storage site to the final work site, having as main objective to optimize the logistics area; since by reducing distribution times, waiting times improve, being more efficient the reception and storage times.

Therefore, warehousing plays a key role within the CA, whose main objectives are effective and efficient inventory turnover, optimal management of obsolete inventories, optimization of warehouse space, optimization of receiving and delivery routes, and optimization of equipment. Within the CA, the configuration of the warehouse is a determining factor for increasing productivity in the production phase; the concepts to be taken into account from the planning phase are location, size and distribution. (Fonseca, 2011).

Thus, after analyzing the methods used by construction SMEs focused on high-rise housing in the city of Medellin, it was concluded that:

• They do not understand logistics management as an integral tool that affects the internal and external processes of the work, avoiding the "just in time" model used in the provisioning of resources aimed at improving logistics management. This happens even when quality management systems are defined, which leads to the multiplication of the time spent on the site for the performance of different activities and the increase of risks for workers due to poor layout planning and the spaces used for the placement of resources within the site.
• There is no evidence of controls exercised on logistics flows, the logistics plan and the CA, which means that the processes that guarantee order within the worksite are affected and have repercussions on processes such as storage, delivery of orders and distribution of resources within the worksite.
• There is no integration between the company and its suppliers in these logistics plans, which is understandable, since if the company itself does not have a well established plan, it is difficult to integrate the parties involved, causing a constant accumulation of materials and prolonging their waiting time. 
• As the three objective points of resource allocation - order delivery, warehousing and delivery costing - are inefficient, production and distribution levels will be affected by lead times.
• If the three points of resource allocation, which are storage, transportation and delivery cost, are inefficient, production and distribution levels will be affected by delivery times.

Therefore, it is proposed that SME construction companies focused on high-rise housing in the city of Medellin, before evolving in terms of construction processes, machinery and materials, rethink the methods of project planning in the logistics and administrative part, because from the identification of existing weaknesses in the CA, losses and reprocesses observed and measured on site, you can choose with an established criterion for the appropriation of new materials and equipment to help the implementation of such projects. In addition, in order to improve logistics management, we suggest the implementation of CA Management as a project planning tool linked to the LC philosophy.

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