AGILE LOGISTICS IT FOR LARGE CONSTRUCTION SITES. Transparent and efficient delivery processes

Transcription

1 AGILE LOGISTICS IT FOR LARGE CONSTRUCTION SITES Transparent and efficient delivery processes June 2015

2 CONTENTS Editorial 1. Agile Logistics IT for large Construction Sites 2. The Work on large Construction Sites: A Project with extraordinary Logistical Requirements 3. IT Solutions for Logistics of large Construction Sites 3.1. Challenges in Information Logistics 3.2. The Solution Approach: Simple and agile IT Solutions for Construction Site Logistics through the Logistics Platform AX4 4. The Advantages of a modern, agile IT Solution for Construction Sites 2

3 VORWORT EDITORIAL Large construction sites are logistical challenges. From groundbreaking to placing the completed construction project into service countless individual steps need to be coordinated, under tight timing and often under strict public scrutiny. Is everything going according to plan? Are budgets being observed? Is the project realized without faults? As it is a fact that on large construction sites a big number of different companies form a temporary working group over months or even years, the logistics management of the subsections becomes a central task. How can supply of the construction site be organized in such a way that neither construction progress nor traffic bog down? How can the working group s companies cooperate with maximum efficiency across a possibly very long supply chain of materials which may even span over several countries? IT takes a central role in solving these challenges. Today modern and agile IT on supply chain management allows for completely new fields of application for large construction sites. It is easily and quickly usable, it integrates various participants at the push of a button and it creates continuous transparency on all processes for construction site supply. This paper will show you how the right kind of IT supports you in transparently managing supply processes for construction sites and in reducing cost. Enjoy your reading! Frauke Heistermann Member of the Management Board, AXIT GmbH 3

4 1. AGILE LOGISTICS IT FOR LARGE CONSTRUCTION SITES Limited space and storage capacities make for additional challenges in working on the construction site. Only if incoming transports are precisely timed, if supply with required building materials and utilities works just-intime around the clock, only then construction of a building will succeed as planned. Otherwise it will get expensive, as machinery or skilled personnel that, due to a lack of coordination, cannot be employed as planned will end up as cost. Transparency of all processes In general there are two prerequisites for optimal cooperation between the contractors, involved suppliers and logistics companies: The transparency of all processes, especially transport management on the construction site, and cross-company flow of information which integrates all construction site partners and includes the full supply chain, from suppliers to forwarders up to the construction site itself. Cross-company flow of information for the entire supply chain Plans to use conventional IT solutions on supply chain management fall short of the mark for this complex task. First, construction projects lack the time for elaborate IT implementation phases. Second, the installation of an IT system which is only required temporarily does not justify the related costs. The solution lies in the type of IT which is immediately available like a tool and which can be used for the required period. Such a system already has the required functional modules for the management of transport processes to construction sites and it integrates the various participants easily, quickly and at the push of a button. It can be used immediately without any additional programming and serves its purpose from the first minute on. We talk about the characteristics of a modern IT solution as it is used on a cloud basis globally where quick availability, a high degree of flexibility and smooth cross-company communication are required. How such a solution can look like in practice and how it works in use on large construction sites is described in this paper. Quick availability, a high degree of flexibility and smooth cross-company communication 4

5 2. THE WORK ON LARGE CONSTRUCTION SITES: A PROJECT WITH EXTRAORDINARY LOGISTICAL REQUIREMENTS Every major construction site resembles a bustle of man, material and machinery. From laying the foundation to superstructure work, the installation of supply lines and comprehensive technical equipment or asphalting access roads: A new world emerges, the elements of which have to be professionally assembled in a dynamically changing work environment. Hereby it is a must that the project s phases build on one another. Schedules determine which stone has to be put on top of the previous one at which time. The coordination of these activities is a Herculean task. Special characteristics of construction site logistics: A multitude of participants (e.g. suppliers, forwarders, construction managers, construction companies, specialist planners, architects, technicians, various experts ) Processes which strongly depend on each other temporally while schedules are highly volatile Large variety of processes Coordination of special materials/tools and experts on the construction site required Poor infrastructural equipment at the construction site Limited space Very different materials being delivered: small parts up to voluminous materials Intransparency on logistics cost caused Schematic overview on the supply chain at large construction sites 5

6 3. IT SOLUTIONS FOR LOGISTICS OF LARGE CONSTRUCTION SITES 3.1. Challenges in Information Logistics With conventional IT solutions communication under the conditions described above becomes a construction site itself, as the use and coordination of different IT systems in use by the participants can hardly be ensured. Each partner involved has to fulfill different tasks and only has those in view. There is a lack of overview on the interdisciplinary process as information does not flow continuously. The result is working in parallel instead of together. Processes run inefficiently, cost time, lead to misunderstandings. There is a lack of overview on the interdisciplinary process as information does not flow continuously. The result is working in parallel instead of together Typical weak points in construction site communication: Non-existing or different IT systems No integration of different participants with a central IT solution. The consequence: The level of information is incomplete, fragmentary and often resembles a black box No standards regarding communication processes The physical flow of goods and the flow of information often run in disjunct ways, e.g. pre-alert information from suppliers are not transmitted reliably or completely Difficult tracking of building elements or materials which were delivered earlier and are undetectable at the time of installation None or very sketchy documentation of flow of goods Discrepancies from the regular process are not reported proactively and therefore mainly recognized too late. As a consequence high cost occurs due to firefighting jobs at short notice or double acquisition of materials which could have been avoided. The physical flow of goods and the flow of information often run in disjunct ways 6

7 3. IT SOLUTIONS FOR LOGISTICS OF LARGE CONSTRUCTION SITES 3.2. The Solution Approach: Simple and agile IT Solutions for Construction Site Logistics through the Logistics Platform AX4 In order to ensure the smooth flow of interlocking tasks on a large construction site all participants must be included in the logistical information process easily and quickly. On the basis of information which is available at a mouse-click for every involved company and through control tools leading to targeted clocking of incoming shipments and materials the use in construction progress can be planned exactly. The central element of construction site coordination is an agile IT solution targeting the management of complex logistical procedures. Information pool for large construction sites 7

8 3. IT SOLUTIONS FOR LOGISTICS OF LARGE CONSTRUCTION SITES What must an IT solution do to enable efficient construction site logistics? a) General requirements to IT: Quick and cost-effective implementation With the launch of the construction site the IT solution must be immediately available and ready to use. A project which runs for a limited period only does not justify high implementation cost. Besides, for an IT solution for large construction sites there must be no contradiction between mapping complex and volatile processes and quick and cost-effective implementation. All participants are quickly and easily integrated into the logistical information process In a sample project AX4 was readily configured as per the construction site s requirements within 4 weeks. Easy integration of all participants across locations Participants should be connected quickly and easily in order not to lose valuable time. This requires integration tools with a high degree of flexibility to respond to the requirements of the various participants. The basic prerequisite is the provision of all conceivable use and access options, e.g. web, link or interface. High degree of agility of IT Processes at the construction site can change, requirements may move on a daily basis e.g. depending on the weather condition. Therefore a high degree of agility of the IT solution for managing construction sites is of major significance. Via PC, tablet or smartphone everyone must be able to get access to the working group s logistics platform at any time and by any way Modules which can be quickly configured The individual configuration of the IT solution should be possible based on an existing module tool box, ideally by the participants themselves. 8

9 3. IT SOLUTIONS FOR LOGISTICS OF LARGE CONSTRUCTION SITES b) Functions of an IT solution for construction site logistics The IT function modules of the logistics platform AX4 can be flexibly combined with each other Essential components of the IT solution are smooth integration of all participants, definition and mapping of processes and their management. Integration Managing, mapping and monitoring all processes (Basic functions) Access for all participants In order to be able to realize the integration of all participants quickly AX4 provides several connection options: Via web account, interface or link. Entry of or access to information can be done via mobile devices like smartphones or tablets. The IT solution acts as a control tower through which data can be entered or added or information can be accessed. Due to the often poor infrastructure on a construction site fixed PC workstations are not always available. Therefore AX4 provides the required information also on mobile devices like smartphones or tablets. In case no internet connection is available on the construction site, it is possible to directly transmit data to the construction site's IT system. Call-off management with suppliers This includes the transmission of material needs from the construiction site to the AX4 platform through a central interface. It is through this function that construction sites can send their material needs to the suppliers. Suppliers, in turn, can pre-alert ordered materials and shipments and report them as ready for pick-up. Shipment management with forwarders Shipments marked as ready for shipping are transferred to the designated forwarders by AX4 through certain routing rules. The forwarders automatically import the shipments into their systems for further processing. AX4 also maps multi-level transport chains with pre-, main and after-carriage. Tracking and Supply Chain Event Management The forwarders report the tracking status of ordered construction site materials back to AX4 via interface or web account. AX4 compares this with previously defined target due dates and can thus monitor if planned delivery times to the construction sites are met or at risk. In case of discrepancies from the plan authorized participants receive an alert by . This way AX4 can also be used as a control tower on construction sites. The IT solution acts as a control tower through which data can be entered or added or information can be accessed AX4 provides the required information on mobile devices like smartphones or tablets. AX4 can monitor if planned delivery times to the construction sites are met or at risk 9

10 3. IT SOLUTIONS FOR LOGISTICS OF LARGE CONSTRUCTION SITES Managing, mapping and monitoring all processes (Basic functions) Reporting & Monitoring It is important for the construction site s various participants to have access to information on the shipping status of ordered materials at any time. AX4 offers comprehensive search functions and overviews. For example, a search can be done using material number, ETA, delays, storage location in the construction site s warehouse etc. Through a central pre-alert function the construction site receives information on which goods are due to be delivered the next day. By comparing the pre-alert information with the electronically stored actual time of delivery it can be checked if delivery was on time. Incoming goods processes / Time-slot management In order to avoid jams with delivery vehicles on the construction site fixed time-slots for delivering forwarders or material suppliers can be arranged and managed through the system. In order to simplify the comparison of ordered and actually delivered materials incoming shipments can be scanned. To do this the supplier prints centrally available barcode labels through the AX4 platform and attaches them to the shipment. In incoming goods the scan will do the comparison with previously alerted data. Upon receipt in a construction site warehouse s incoming goods the status stored can be set. The material is then assigned a storage location which will later be booked as empty again when the goods are removed. Comprehensive search functions and overviews Smooth processes at delivery and transparency on the presence of goods in the upstream warehouse Materials withdrawal and feed to construction In an upstream warehouse a withdrawal order will be created in AX4, the material gets the status delivered and the storing location is marked as free again. 10

11 3. IT SOLUTIONS FOR LOGISTICS OF LARGE CONSTRUCTION SITES Smart additional Features Cloud as suitable basis technology Freight cost calculator Not always there is transparency on freight cost which occurred. Often the question at which freight cost and at what transit time a material can be procured arises at short notice. For such cases AX4 offers a freight cost inquiry which also includes transit time calculation. As a result all forwarders worth considering for the transport in question are displayed including the related freight cost and transit times. This allows for quick and well-founded decisions. Document upload Besides various information on materials and shipments AX4 offers the option to upload documents (e.g. technical drawings, customs information, pictures of shipments etc. ) and to allocate them to a process. An appropriate approach for a quick and cross-location integration of all participants to the logistics management of large construction sites is a cloud based solution, such as the logistics platform AX4 by AXIT. The technology is globally available at the push of a button and operates independently of local systems. No other technology allows to integrate partners with cross-company processes that quickly and easily. AX4 offers a freight cost inquiry which also includes transit time calculation No other technology allows to integrate partners with cross-company processes that quickly and easily AX4 Module Box for Construction Site Logistics 11

12 4. THE ADVANTAGES OF A MODERN, AGILE IT SOLUTION FOR CONSTRUCTION SITES AX4 is part of a modern and agile generation of IT solutions which enables secure and reliable management of large construction sites. It brings light, order and efficiency into the complex procedures of a construction. It ensures a continuous flow of information and provides all partners with the information relevant to them. It allows for continuous control of all logistical procedures related to the construction. With the use of a central and cloud-based IT platform for the continuous coordination of all logistical processes the construction site s management benefits from various aspects. Transparency The availability and delivery time of required material can be determined exactly at any time as well as the material demand itself. Delivery reliability Early deliveries increase stock, late deliveries lead to delays both can be avoided by perfect clocking of logistics. Security Registering the building material gives overview on quantity and storage location. Resupplying undetectable materials becomes unnecessary. Standards Standardized processes replace Excel worksheets which do contain a lot of knowledge but also a lot of complexity. Cost transparency Freight cost can be compared, checked and thus reduced. Predictability As the time of delivery of important building materials is alerted through the system the use of man and machine at the construction site becomes more predictable. Cost savings Avoidance of freight cost for replacement of materials and reduction of administrative cost by less research efforts. Productivity increase Stable and predictable processes at the construction site lead to increased productivity. Knowledge As all information related to the construction site is centrally available the research efforts when looking for information is reduced. Continuity Even long, global transport chains can be tracked up to the construction site. AX4 as a modern and agile IT platform allows for new application models for IT on large construction sites and thus contributes to realizing savings potentials and improvements which could not be achieved before. 12

13 Editor AXIT GmbH A Siemens Company Nachtweideweg Frankenthal Tel.: / Fax: / You can order further information about the use of the logistics platform AX4 as well as examples of best practices at: info@axit.de