E-Commerce Tech in Construction Supply Chain: Present and Future

Introduction

As the trend is changing and becoming more client-oriented, the construction industry is also facing many ongoing challenges, like:

  • Greater performance expectation
  • Increased competition
  • Restructuring of work practices
  • Need of information and communication technologies

A construction project requires various involvements and sharing updated information amongst them, often leads to errors and delays. However, development of technologies, internet and ICT have provided solutions like e-commerce which provides information and workflow control, process management, as well as improved communication.

Description and evaluation:

Electronic commerce or e-commerce is an important sector of the Internet world.

It includes sharing of information and processing it for a business. (B 2 B & B 2 C)

There are ways in which E-commerce helps:

1. Better work opportunities within industry/organization.

2. Access to information becomes easy and reliable.

3. Speedy working practices.

4. Reduction in cost.

5. Monitoring on the quality that would be offered.

6. A great combination of design & construction.

7. Less disputes due to high transparency.

E-commerce also plays a vital role in the sector of construction as it improves a key part of the segment i.

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e. it enhances the supply chain process or provides and effective medium for supply chain management.

Efficient material - handling in information processing using information technology where it contributes to inventory reduction and decrease in the number of rebuilding with accurate design information and production of energy-efficient buildings, which ultimately saves project cost & time. It includes a list of benefits from Client to Manufactures including Designers, Contractors, Building merchants. Such as:

1. Project overall efficiency.

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2. Reduce cost of construction.

3. Compresses the construction phase.

4. Communications is enhanced.

5. Lower administrative cost.

6. Project control and its security.

7. Channel cost is reduced.

8. Purchasing and categorizing for customers becomes easy.

Along with benefits there are few challenges also:

  • Challenges Information Management System
  • Organisational Policies
  • Human Resource and Learning
  • Training Learning and Knowledge Sharing

Problems in current practices and operations:

  • Inability of subcontractors/suppliers to adopt the technologies.
  • Lack of in-house technical expertise.
  • Lack of integrated information management system.
  • Lack of IT training and knowledge sharing .
  • Costly and complicated e-commerce system.
  • Less awareness in top management of organizations.
  • Different organizational culture.
  • Fear of implementation of process change in any business.
  • Less support from the executive level.
  • Lack of software that meets the required needs.
  • Lack of strategies, trust, and commitment.
  • Less/delayed return on investment.
  • Less clarity about vision and objectives.
  • Clients irregularity.

Analysis of the Case

The growing need or increasing application of the e-commerce technologies in construction supply chain:

  • Better work opportunities.
  • Increases the speed of working.
  • Information and system management Reduced time in clerical works.
  • Ease of working with CAD and various software.
  • Barriers
  • Lack of in-house technical expertise and personnel
  • Reluctance/inability to adopt computer technologies among subcontractors and suppliers
  • Lack of suitable systems that meets the company's needs
  • Different organizational culture
  • Inability to Acceptance Case ( Interviewed Carried out and Results: as per paper)

With a Project Coordinator of a large construction company background current e-commerce technology applications challenges of implementing of e-commerce technology

W ith a Contract Administrator of a large construction company background challenges of E-commerce technology:

1. Problems with Emails.

2. Problems with WWW.

3. Problems with achieving and retrieving project information.

4.Problems of IT learning.

With a Design Coordinator of a Medium Engineering Company. Background challenges of implementing e-commerce:

  • Technology
  • Alternate Solutions
  • More awareness about the project's aims and objectives.
  • More user friendly, and integrated e-commerce system.
  • IT training and knowledge sharing.
  • Supportive organization culture.
  • Setting industry standards.
  • Cost reduction of technologies.
  • Better profits/savings.
  • Better compatibility of software.
  • Client's active participation.
  • Better secure services.
  • Integration pf construction members through the network .

References:

1. EFFECTIVE APPLICATIONS OF E -COMMERCE TECHNOLOGIES IN CONSTRUCTION SUPPLY CHAIN: CURRENT PRACTICE AND FUTURE IMPROVEMENT by Patrick X.W. Zou & Youngsin Seo.

2. //www.liaison.com/blog/ 2017 /02 /10 /benefits-supply-chain-management/

3. //www.ukessays .com/essays/information-technology/the-ecommerce-impacts-on-supply-chain-management-information-technology-essay.php

Updated: May 03, 2023
Cite this page

E-Commerce Tech in Construction Supply Chain: Present and Future. (2019, Dec 17). Retrieved from https://studymoose.com/assignment-1-supply-chain-management-rectified-example-essay

E-Commerce Tech in Construction Supply Chain: Present and Future essay
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