Improving efficiency in the concrete supply chain

iMOVE’s Construction industry supply chain data sharing framework project, run with Victoria’s Level Crossing Removal Project and Swinburne University of Technology has been completed. The study investigated data sharing across government and industry about the construction material supply chain through the lens of social, economic, and environmental outcomes for stakeholders.

The research was part of the Level Crossing Removal Project (LXRP), connected to the Western Program Alliance (WPA) in Victoria. The LXRP program aims to eliminate 110 rail level crossings in Melbourne’s metropolis by 2030.

Project scope

At the heart of the project was the goal of uncovering how industry-wide collaboration can unlock new efficiencies, including in the existing data-sharing framework, best practices, and online platforms used in construction. Using research and stakeholder consultation, it developed a conceptual framework and a digital platform to enhance data and information sharing. This work aimed to benefit stakeholders across the transport supply chain.

The construction industry is one of the least digitally transformed sectors, according to the Office of the Chief Economist. This was a key challenge. Therefore, the study was needed to improve efficiencies, reduce costs, and eliminate wasting materials and resources. The project considered the potential for real-time tracking and tracing of construction materials across supply chains involving several parties as a key strategic capability.

Stakeholder consultation

The first part of the project involved gaining the university’s ethical approval to engage with stakeholders. Collaboration between the researchers and LXRP began with open dialogue, with the researchers consulting extensively with stakeholders across the supply chain, gathering invaluable insights into both challenges and opportunities.

Through these discussions, a powerful picture emerged: collaboration and data-sharing are critical to unlocking new efficiencies. This process helped shed light on the benefits and pain points, current frameworks, best practices, and platforms in use for the construction supply chain.

The search found a variety of methodologies, tools, and techniques to think about digital information sharing. They involved either computational thinking (targeted problem-solving) or systems thinking (holistic and iterative) approaches.

As part of the ethics approval, participants’ identities are anonymous. However, collectively they had a century’s worth of construction industry experience. Two had more than 20 years’ experience, while one participant had less than a decade’s experience. Their roles included:

• Technical/engineering
• Customer service
• Quality assurance
• Innovation
• Commercial, and
• Data centre.

Participants were equally split between supplier, contractor, and LXRP roles.

Topics of interest

Key themes which emerged from the analysis included:

Workflows and processes

Participants spoke about their typical tasks and activities, as well as their interactions with other supply chain partners and resultant challenges. These issues are typical of construction projects globally, and not specific to just LXRP.

One challenge was the need for supply chain partners to co-ordinate and collaborate more. The discussion revealed a need for partners to collaborate on boosting their knowledge of supplied concrete, and its logistical and chemical properties. Participants also highlighted activities, and risks, as well as opportunities and challenges that impacted other partners indirectly. A more holistic approach to co-ordination and collaboration was needed. As well, other concerns were about the lack of systematic data, timeliness of sharing, and inconsistencies in meanings of words such as ‘completion’.

Data and information sharing

Participants described a patchwork of data management practices across the concrete supply chain. While some organisations invested in system upgrades to improve digital data sharing, many still relied heavily on manual processes such as phone calls and emails. The participant feedback teased out a key insight, in that when organisations work in silos, inefficiencies develop. By embracing digital data-sharing systems and moving away from outdated manual processes, the entire supply chain stands an improved of becoming more agile.

There was a clear opportunity to increase digital data sharing and integrate systems to improve overall efficiency and decision-making. However, challenges remain in areas such as data accessibility, standardisation, and developing systems that capture the full range of value-adding data, beyond costs and quality.

To fully optimise the supply chain, there is a need for more advanced systems to capture and analyse data on concrete usage, service quality, and operational processes. This will allow better forecasting, performance measurement, and identification of opportunities for improvement.

Enhancing current concrete supply chain management

Participants called for a shift from traditional work to a more collaborative approach focused on long-term value creation. Key areas for improvement included:

• Stronger collaboration: Improved communication and information sharing between supply chain partners.
• Sustainability: Accelerated development and use of sustainable concrete products and processes.
• Agility: Increased ability to adapt to changing market conditions and customer needs.

By addressing these areas, the concrete supply chain could become more efficient, sustainable, and responsive.

Participants highlighted the dynamic nature of construction projects, emphasising the need for improved data access to mitigate disruptions. The future of the concrete supply chain lies in a collaborative, forward-thinking approach. Through working together in this way supply chain partners can not only improve their individual processes, but also drive long-term value for the entire industry.

Key areas for improvement identified included transitioning from manual data handling to digital systems, improving information flow between multiple stakeholders, and expanding the scope of shared data. For example, enhancing truck tracking systems to offer longer-term visibility of delivery schedules would enable better on-site planning and resource allocation.

The overall message from the interview participants is that improved data and information sharing in the concrete supply chain that contribute to value creation for the long term, will be most effective (e.g., increased sustainability, enhanced partner collaboration and improved supply chain performance).

… participants acknowledged the current supply constraint in the industry could be addressed by greater sharing of data and information, however what should drive the project is rather to address trends to greater consideration of the total cost of ownership and social value creation.

Use cases

Building on previous project findings, this phase focuses on developing use cases to inform the design of human-centred digital tools. This will enhance data sharing in the concrete supply chain. By leveraging existing technologies and insights from stakeholders, the project identified opportunities for improving information flow and collaboration.

The researchers adopted a use-case approach to describe how digital solutions can support specific supply chain activities. Three core business processes – design and order, plan, and track, and deliver and pour – were prioritised to develop use cases initially.

These use cases were a high-level overview and need refining through detailed stakeholder engagement, and the next stage will see them co-designed, developed, and the trial of a prototype.

Recommendations

The project delivered eight recommendations:

1. Expand upon this definition of information sharing in construction logistics supply chains:

Inter-organisational exchanges of digital data, information, and/or knowledge along construction supply chains (dyadic and/or multi-tier) that impact on the willingness and ability of an organisation to make logistical and transport decisions at operational, tactical, and strategic levels

2. Agree on the conceptual framework to design, implement, evaluate, and extend a digital construction logistics platform for better information sharing and supply chain co-ordination.
3. Agree on the big picture for the system architecture for the proposed digital platform. Develop governance principles to manage and deploy digital technologies, tools, and services across a four-layered model.
4. Investigate three potential applications for digital data and information sharing for ‘design & order’, ‘plan & track’, and ‘deliver & pour’.
5. Establish a shared framework for construction projects by using standards, contracts, and guidelines to ensure transparency, collaboration, efficiency, trust, and effective communication among all parties involved.
6. Create co-ordinated solutions across the construction industry to overcome data sharing and management challenges. This includes developing clear strategies for cybersecurity, data ownership, and protection while balancing digital and manual processes.
7. Develop a continuous improvement process for the LRXP (WPA) platform, identifying priorities and lessons learned to inform the development of new use cases that enhance its capabilities.
8. Transition to Phase Two incrementally, using Phase One use cases as a foundation. Evaluate digital solution potential for specific applications, considering costs, contracts, stakeholder readiness, and needs. Prioritise accordingly.

The project offers a roadmap for the future of construction supply chains, and emphasises the need for standardised transparent digital communication, and a unified framework to guide collaboration across the industry.

Expected project impacts

This work has the potential to be transformative for the construction sector. The lack of a structured approach to data architecture and sharing is becoming a huge constraint on the industry harnessing the digital and AI transformation going on around it. This project will demonstrate the collaborative working approaches and data methodologies, this should provide a template that can be used as a foundation to enable digital collaboration and improved industry efficiency.

David Murphy, Director Transformation and Innovation, Level Crossing Removal Project

Final report

A final report has been produced, but is for internal use only.