Supply in construction
‘Supply’ is the flow of resources used to satisfy a demand, such as materials, labour, information, skills, and so on. It can also refer to competencies or combinations of resources. In very general terms, commodity suppliers tend to be more price focused, whilst strategic suppliers are more quality/delivery focused.
As an economic concept, supply can relate to the amount that is available at a specific price, or the amount that is available across a range of prices. Goods and services all have their own supply and demand patterns based on the principle that if the market demands something and consumers are willing to pay more for it, producers will add to the available supply. As the supply increases, the price falls provided there is the same level of demand until (in theory at least) an equilibrium point is reached at which the supply equals the demand and there is neither any wasted supply or shortages.
In the construction industry, the term ‘supplier’ refers to organisations contracted as part of the delivery of a built asset. Traditionally, suppliers were considered to be organisations contracted to provide physical supplies such as goods, materials, plant, and so on; however, use of the term is now much broader and PAS 1192-2 defines a supplier as any ‘…provider of services or goods either directly to the employer or to another supplier in a supply chain’.
For more information see: Supplier.
The term 'supply chain' refers to the interconnected hierarchy of supply contracts necessary to procure a built asset. Managing the supply chain involves understanding the breakdown and traceability of products and services, organisations, logistics, people, activities, information and resources that transform raw materials into a finished product that is fit for its purpose.
For more information see: Supply chain.
Supply chain management requires a holistic perspective and a view of organisations as parts of a process. It requires the ability to look beyond organisational boundaries, and a recognition of interdependencies.
NB The term ‘supply’ can also refer to the transmission of utilities through a network, for example, an electricity supply, water supply and so on.
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
ECA proposes strategies for the present and the future.
Paul Morrell to lead independent review of the construction products testing regime.
Standard will help employers foster wellbeing and manage psychosocial risks.
The United Nations has approved the IFSS common principles
Global fire standards for safety of people and property.
An introduction to the 5 core principles of lean.
Civil engineers and environmental methods of construction
Can the profession use its skills to save the world from climate change?
How faulty science resulted in sanitation reform.
Conserving the Hilda Besse Building
Improving facilities, accessibility and overall appearance.
BSRIA IAQ topic guide published
Free download of TG 12/2021 available.
Electrotechincal mentors wanted
TESP works with The Youth Group to form skill sharing network.
OpenBuilt supply chain technology in development
Big tech collaborates on platform for the built environment.
Concerns raised over Future Buildings Standard
Letter signed by 21 organisations sent to MHCLG.
The infrastructure planning process
A look at the Government's strategic approach.
Steps to help reduce the spread of infection inside buildings.
Receive the Designing Buildings newsletter
Click the button to subscribe.