e-ISSN: 2582-5208

International Research Journal of Modernization in Engineering Technology and Science

( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:09/September-2024 Impact Factor- 7.868 www.irjmets.com

REVIEW PAPER ON SUPPLY CHAIN MANAGEMENT IN ROAD

CONSTRUCTION PROJECTS
Khambe Shivraj V.*1, Patil Amit P.*2
*1PG Student, Department Of Civil Engineering, Rajarambapu Institute Of Technology, Islampur,
Maharashtra, India.
*2Assistant Professor, Department Of Civil Engineering, Rajarambapu Institute Of Technology,
Islampur, Maharashtra, India.
DOI : https://www.doi.org/10.56726/IRJMETS61510
ABSTRACT
Supply chain management (SCM) is critical in highway construction projects, overseeing the flow of money,
goods, and information from suppliers to customers. In India, these projects often face delays and cost overruns
due to complex material handling and procurement processes. The unique social, political, and economic
context further complicates SCM, making efficient material management and accurate information exchange
essential for minimizing delays and ensuring project success. Numerous nations have conducted extensive
studies on supply chain management and its implementation in the construction industry, but very few have
utilized real-time data for material and equipment consumption or employed probability distribution functions
in this context. Additionally, the use of real-time data in discrete event simulation as a supply chain
management tool remains underexplored in India. Addressing these gaps can significantly improve planning,
scheduling, and overall project outcomes, highlighting the need for a focused approach to SCM in the Indian
highway construction sector. This abstract highlights the importance of modern SCM concepts and techniques
in addressing these issues and improving construction project outcomes.
Keywords: Supply Chain Management, Simulation Model, Taguchi Method, Optimization.
I. INTRODUCTION
Supply chain management, or SCM, is the control of the money, goods, and information that are transferred
from supplier to customer. Every stop that is required to go from the supplier to the customer is likewise a part
of the supply chain. Coordination of this material movement both to the final customer and inside an
organization is the task of supply chain management. The development of the nation is greatly aided by
highway construction projects, which call for careful planning, scheduling, and management. The linear and
dynamic character of highway construction projects means that different amounts of materials and equipment
are needed at different stages of the project. This variation leads to a closer look at the necessary resources in
order to cut down on delays. Any project that wants to succeed has to know how much material and equipment
to use and when to use it. One of the most important global challenges faced by the construction sector and
project stakeholders is delay. In India, Infrastructure projects have had far more significant cost overruns and
much longer delays. Material handling operations are estimated to account for 50 to 60 per cent of a road
project [1]. The construction industry is an important sector contributing to the country’s economy. The
construction projects are majorly noted for overruns in time and cost [1]. In many of these situations, the
delays are peculiar to the project. When compared to projects in other industries, infrastructure projects in
India have had significantly greater cost overruns and far longer delays [2]. The productivity factors found by
scholars in other countries may not be applicable in the Indian context due to the country's distinct social,
political, and economic background [3]. And also the materials play a vital role in any construction project. Its
management is one of the essential resource elements in a project, as the cost of materials amounts to a
significant share of the total project cost [4]. Optimising material procurement costs is a crucial objective of
many construction projects [5].The Indian construction industry, in contrast to the manufacturing sector, has a
designated group of suppliers, and the distribution centre is often responsible for inventories. The material
logistics plan is complicated. By the dynamic movement in the location of the road building site, which leads to
resource constraints, fluctuating productivity rates, and delays in material arrival [6]. Since information
exchange is the main cause of project delays, mistakes, and duplications, it plays a crucial role in building

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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:09/September-2024 Impact Factor- 7.868 www.irjmets.com
projects [7] [8]. Another element influencing construction projects is uncertainty, which can arise from a
variety of sources and has an impact on the supply chain network. The correctness of the project design,
approval from regulators, and delays in clients providing timely and accurate information are the main sources
of uncertainty in construction projects [9]. Four functions were defined for supply chain management in the
construction sector. The study found that many issues in a building project may be resolved by applying the
concepts and techniques of contemporary SCM. According to the author, the choice of emphasis must be
acknowledged first. Whether to concentrate on the building site, the supply chain, or both must be determined
[10]. Figure 1 represents the four areas of focus.

Figure 1: Four roles of SCM in construction (Source: Vrijhoef and Koskela, 2000)
The material movement through the supply chain, such as procuring, dispensation and allocation, necessitates
careful planning. According to the author, optimizing logistics choices can increase the project's overall
economic impact and result in significant savings in logistical costs [11].
II. PROCESS OF CONSTRUCTION SUPPLY CHAIN MANAGEMENT (CSCM)
Construction Supply Chain Management (CSCM) entails the methodical synchronization of the procedures,
materials, and interested parties in carrying out construction projects. It includes every phase of the project,
from original planning and design to procurement, building, and project conclusion. The goal is to make sure
that every step of the building process is effectively managed to maximize output, reduce expenses, and
improve the end product's quality.
2.1 Key Components of Construction Supply Chain Management
2.1.1 Planning and Design:
This phase involves defining the project’s requirements and scope, including design specifications, materials,
and budget. It is the primary and most important phase in any SCM.
Activities:
 Project Requirements: Determine the project's objectives, scope, and technical requirements.
 Design Development: Create detailed design documents, including architectural and engineering plans.
 Cost Estimation: Estimate costs for materials, labor, and other resources.
2.1.2 Procurement:
This phase focuses on acquiring the necessary materials, equipment, and services for the project.
Activities:
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( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:09/September-2024 Impact Factor- 7.868 www.irjmets.com
 Supplier and Subcontractor Selection: Identify and evaluate potential suppliers and subcontractors.
 Tendering and Contracting: Issue tenders, negotiate contracts, and finalize agreements.
 Order Management: Place orders for materials and services as required.
2.1.3 Logistics and Delivery:
This phase ensures the timely and accurate delivery of materials and equipment to the construction site.
Activities:
 Transportation Coordination: Manage the logistics of transporting materials and equipment.
 Inventory Management: Monitor and control inventory levels to avoid shortages or surpluses.
 Receiving and Inspection: Verify the quality and quantity of delivered items.
2.1.4 Construction and Execution:
This phase involves carrying out the construction activities according to the project plan.
Activities:
 Construction Management: Supervise and coordinate construction activities on site.
 Quality Assurance: Ensure that construction work meets the specified standards and quality.
 Coordination: Facilitate communication and collaboration among contractors, subcontractors, and other
stakeholders.
2.1.5 Monitoring and Control:
This phase involves overseeing the project's progress and performance.
Activities:
 Progress Tracking: Monitor project milestones and compare them against the schedule.
 Performance Evaluation: Assess project performance in terms of cost, time, and quality.
 Issue Management: Identify and address any issues or deviations from the plan.
2.1.6 Completion and Handover:
This phase involves finalizing the project and delivering it to the client.
Activities:
 Final Inspection: Conduct a thorough inspection to ensure all work is completed to the required standards.
 Handover Documentation: Provide necessary documentation, including warranties, manuals, and as-built
drawings.
 Client Handover: Officially transfer the completed project to the client.
2.2 Key Objectives of Construction Supply Chain Management:
 Efficiency: Streamline processes to reduce delays and improve overall project performance.
 Cost Management: Control and optimize costs through effective procurement, inventory management, and
resource allocation.
 Quality Assurance: Ensure that all materials and work meet the required standards and specifications.
 Coordination: Enhance communication and collaboration among all stakeholders to prevent
misunderstandings and conflicts.
 Risk Management: Identify and mitigate potential risks and issues that could impact project success.
2.3 Challenges in Construction Supply Chain Management:
 Fragmentation: The construction industry often involves numerous parties, which can lead to coordination
challenges and inefficiencies.
 Uncertainty: Variability in project requirements, site conditions, and external factors such as market
fluctuations can impact the supply chain.
 Complexity: Managing the flow of materials, equipment, and information across various stages of the
construction process can be complex.

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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:09/September-2024 Impact Factor- 7.868 www.irjmets.com
III. TECHNIQUES AND TOOLS USED FOR MATERIAL MANAGEMENT
Jabri and Zayed [12] found that one of the main issues facing highway building projects is resource scheduling.
Highway projects are not like construction projects in that the locations of the different resources must be
delivered, stacked, and stored in a timely manner. Different combinations of equipment units were discovered
to alter the operation's duration and productivity, highlighting the need of closely examining the equipment
units that manage the workflow. Here are few examples of techniques and tools used in material management,
3.1 TECHNIQUES
1. Just-in-Time (JIT) Inventory Management: By acquiring supplies only as needed for production, JIT is a
technique designed to lower inventory levels. This technique lowers the danger of items going out of date
and saves storage expenditures. The industrial sector has effectively adopted the Just-in-Time (JIT) resource
management philosophy, which calls for the organized handling of resources to ensure that the right
supplies are available in the right amount and quality at the right time for production [13].
2. Advanced scheduling techniques: In order to ensure that resources are used effectively and deadlines are
reached, advanced scheduling techniques aid in the planning and management of project schedules. The
Critical route Method (CPM) finds the least amount of time needed to complete a project by determining the
longest route of dependent activities. Aids in scheduling and work prioritization. The Program Evaluation
and Review Technique (PERT) utilizes probabilistic time estimates to include uncertainty in project
timelines. Enhanced time management skills improve the capacity to full-fill deadlines and effectively
manage project schedules.
3. Integrated Project Delivery (IPD): IPD is a collaborative approach where all project stakeholders (owners,
designers, contractors) work together from the beginning of the project to optimize performance and
achieve shared goals.
4. Resource Scheduling Software: Resource scheduling software facilitates the efficient planning, scheduling,
and management of resources. Examples,
 Primavera P6: Comprehensive project management software for scheduling and resource management.
 Microsoft Project: Offers project scheduling, resource allocation, and tracking features.
 Smart-sheet: Provides collaborative project management and resource scheduling tools.
5. Taguchi method: The manufacturing sector uses Design of Experiments (DoE) as a method to analyse the
impact of process factors. One technique for figuring out the best control parameters is the Taguchi
approach [17]. Taguchi's design of experiments was applied in a research by Joshaghani [16] to maximize
the performance of the various features in the previous concrete pavement mixture design. Taguchi analysis
employs a special orthogonal array design to find the ideal experimental condition and the signal-to-noise
ratio acts as an optimization objective function.
3.2 TOOLS
1. Building Information Modelling (BIM): BIM, or Building Information Modelling, is the creation and
management of digital representations that accurately depict the physical and functional attributes of
various locations. Improves accuracy in material planning and procurement. Reduces waste through precise
quantity take offs and clash detection. Enhances coordination among project stakeholders. Challenges:
 Requires investment in software and training.
 Depends on the quality and accuracy of the model.
2. Simulation Modeling: One method for creating a virtual representation of a system or process in real life is
simulation modeling. A digital copy of the supply chain is made in the context of construction supply chain
management in order to assess and improve the flow of supplies, resources, and data from suppliers to the
building site. In the past, researchers have employed a variety of material scheduling techniques, such as the
linear programming model [14] and simulation model for material management [15]. Project modeling is
made easier with the use of simulation, which uses computers to evaluate the model numerically and
produce a realistic image of the site's operations. In 2009, Polat and Buyuksaracoglu [15] examined a real-
world resource planning issue with an asphalt roadway project of 4 km in length and 14 m in width. With
the use of the simulation program Extend + BPR, the minimal amount of resources needed to finish the job

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 e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:09/September-2024 Impact Factor- 7.868 www.irjmets.com
within the projected time was determined for this research project. Wang and Halpin [18] conducted a
literature review and found that simulation is a useful tool for scheduling and planning highway building
projects because it can determine the best use of available resources.
 Types of simulation models:
 Discrete Event Simulation (DES): Simulates systems in which events cause changes to happen at distinct,
defined times is known as discrete simulation. Processes and queues may be thoroughly examined since the
system state only changes in response to events. Numerous academics have suggested a variety of modeling
techniques to examine different problems pertaining to discrete event simulation. A discrete event
simulation model was developed by Jabri and Zayed [12] for an earthmoving operation comprising many
equipment units doing the same task.
 Continuous Simulation: Models systems in which changes take place gradually over time. Differential
equations are usually used in these simulations to depict the behavior of the system.
 Monte Carlo Simulation: Monte Carlo simulation estimates a system's statistical characteristics through
random sampling. It offers a variety of potential outcomes and their probability by doing simulations with
many random inputs. To perform the simulations needed for probabilistic computations, software is
needed. A program that is widely used for doing Monte Carlo simulations is called @Risk (Pallisade, US).
When compared to deterministic approaches, this method delivers the greatest exposure information since
it can calculate not only the min and max values but also the entire spectrum of exposure and percentiles
[16].
 Simulation-Based Optimization: Combines optimization and simulation methods to find the optimal
solution for a given issue. Several simulations are conducted in order to assess various situations and
identify the best course of action or parameter configurations.
IV. RESULTS AND DISCUSSION
In contrast to the industrial and retail sectors, inventory management is still underappreciated. Delays in the
availability of materials and equipment affect construction projects globally and are the main cause of cost
overruns. According to a 2007 research by Kumar and Viswanadham [17] on the Indian construction supply
chain, construction companies have been less productive than other industries in using information technology
and supply chain principles. This late adoption of these concepts has resulted in a loss of production. The
breakdown of construction expenses (Table 1) from the Construction Industry Development Council shows that
over 50 % of the project cost is accounted for by material and equipment expenditures.
Table 1: Break–up of construction cost
Construction Enabling Admin.
Material Labour Finance Surplus
Equipment Expenses Expense
% % % %
% % %
Building 58-60 4-5 11-13 7-8 5.5-6.5 3.5-4.5 5-6
Roads 42-45 21-23 10-12 7-8 5.5-6.5 3.5-4.5 5-6
Bridges 46-48 16-18 11-13 7-8 5.5-6.5 3.5-4.5 5-6
Dams etc. 42-46 21-23 10-12 7-8 5.5-6.5 3.5-4.5 5-6
Power 41-43 21-24 10-12 7-8 5.5-6.5 3.5-4.5 5-6
Railway 51-53 6-8 16-18 7-8 5.5-6.5 3.5-4.5 5-6
Mineral
41-44 20-22 12-14 7-8 5.5-6.5 3.5-4.5 5-6
plant
Medium
50-52 7-9 16-18 7-8 5.5-6.5 3.5-4.5 5-6
industry
Transmis
49-51 5-7 19-21 7-8 5.5-6.5 3.5-4.5 5-6
sion

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( Peer-Reviewed, Open Access, Fully Refereed International Journal )
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In India, Infrastructure projects have had far more significant cost overruns and much longer delays. Material
handling operations are estimated to account for 50 to 60 per cent of a road project [1]. Most research studies
don't take into account the uncertainties associated with the project, its dynamic character, or the problems
encountered during highway construction projects. Studies have indicated that Supply Chain Management
(SCM) may be applied in the construction sector to enhance the coordination of different project stakeholders.
V. CONCLUSION
The majority of research studies don't account for the project's uncertainties, dynamic nature, or challenges
that arise when building new roads. Another element influencing construction projects is uncertainty, which
can arise from a variety of sources and has an impact on the supply chain network. Most research studies don't
take into account the uncertainties associated with the project, its dynamic character, or the problems
encountered during highway construction projects. Discrete event simulation modelling is identified as one of
the best tools for highway construction projects. Various researchers scrutinized the various factors needed for
SCM's successful implementation, and the Taguchi analysis is identified as best new approach to optimize these
factors or resources. Very few studies has acquired the real-time data over the planned schedule data. The
study also noticed that the probability distribution function have been limitedly used for the material and
equipment consumption data. Few studies, however, have examined the use of real-time data on the use of
materials and equipment as modelling input for discrete event simulation as a supply chain management tool in
the Indian setting.
VI. REFERENCES
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International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:06/Issue:09/September-2024 Impact Factor- 7.868 www.irjmets.com
[15] Polat, G. and Buyuksaracoglu, Y., (2009). Using discrete-event simulation for process modeling: Case of
work structuring of asphalt highway construction operations. In submitted to the 26th International
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[16] Joshaghani, A., Ramezanianpour, A. A., and Jaberizadeh, M. (2014). “Mechanical characteristic of
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[18] Wang, S., and Halpin, D., 2004. Simulation experiment for improving construction processes. IEEE. In
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