5 Obstacles When Implementing A New Logistics Strategy For Your Construction Project

Across companies and projects, everyone agrees that getting the right materials to the right place at the right time is vital to a successful project. But if excellent material delivery can make such a big difference, why aren’t more contractors getting better at it? Why do most logistics improvement efforts fail to deliver?

New Logistics Programs: A Tall Task

Let’s say that you’ve decided to revamp your logistics processes. Whether you’re trying to balance your construction scheduling, take advantage of cost savings, or gain the benefits of a strategic stockpiling strategy, you’ve realized it's time to make a change. What now? How do you go about instituting a new system? Even if you wholeheartedly want to create a better way, it’s more than a matter of simply going out and doing it. Implementing a new or improved logistics scheme can be complicated and frustrating. Unfortunately, plenty of the challenges come at the organizational level, where change management and systems integration can be a tough hill to climb. With so many stakeholders, a fragmented supply chain, and many layers of decision-making, there are many ways that a logistics process overhaul can fail. In many ways, large and complex construction projects act as a living breathing organism, sometimes with a mind of its own. With so many moving parts, getting a handle on the introduction of new material transport, storage, and delivery processes can be like taming a wild beast.

Gaining Insight on Logistics Implementation

To better understand the logistics of a project and how to influence change in one, some researchers explore a behavioral change model to shed light on the issue. After all, directing collective action across a large group is a human problem, and in many senses, the barriers of organizational change are the same, no matter what type of industry you’re in. So, what can we learn from using this perspective? Here are the 5 major barriers to the decision-making process hindering the optimization of construction logistics on most projects.

Awareness For some supply chain and procurement teams, there isn’t a cognizance of what great construction logistics can look like. In order to achieve excellence, the first hurdle is generating the recognition that things can be so much better.

Understanding Beyond the awareness of inefficient logistics, the next obstacle is a firm grasp on what a shift toward efficient logistics will entail. For effective change, leaders need to have the necessary information about what the associated requirements (and benefits) are.

Willingness Another major challenge in implementing improved construction logistics is buy-in from all involved parties. This often involves ensuring that the goals and values of different organizations and leaders are aligned with a shared sense of ownership, a task that’s easier said than done.

Ability There are plenty of different hindrances to introducing innovative logistics solutions, from finances to permits to physical resources. Contractors need to be well equipped and well prepared in order to make effective change happen.

Implementation Even with the best planning, the previously-mentioned fragmented nature of construction projects leaves many opportunities for gaps and lapses to emerge. Timing, breakdowns, and conflicts can all hurt the coordination of an otherwise solid logistics plan, which needs to be managed and adapted throughout the lifespan of a project.

The LSP Solution

According to McKinsey, the construction sector struggles with very poor productivity, and one of the chief solutions is improving procurement and supply-chain management. Other research shows that well-developed construction logistics can increase project productivity by 30 percent. In order to take advantage of those gains, though, a contractor needs to get each of the above five aspects just right, and the pain of implementing a new supply chain system can be a major deterrent. With the many pitfalls of implementing a bigger, better logistics plan for high-spec construction, contractors need all the help they can get. One way that projects can take a load off of their plate is with the help of a Logistics Service Provider (LSP). Instead of facing many of the complex challenges discussed above, a contractor can hand off many of their logistical responsibilities to an LSP who specializes in orchestrating them. With a built-in strategy to mobilize joint action and oversee all processes, an LSP can drop into a project and deliver results without a contractor needing to go through the troublesome process of implementing the process internally. In many ways, hiring an LSP is like a shortcut past the hurdles of implementation to jump straight to the benefits. Although the challenges of change management still exist, they are no longer weighing down the project manager. Want to read more about how an LSP can provide value to your project? Click here to learn more about how an LSP can improve your logistics.