Achieving supply chain integration through demand and supply management

One of the major issues while integrating the supply chains within the construction industry is to capture the thoughts, and views about the changing practices from the parties involved. At the end of the day, it is all about human nature, which by default is often reluctant for to and resists the change. The integration of the supply chain not only brings the changes in the processes such as procurement process, design and management process, but also encourages some softer aspects such as more trust and more collaboration among all parties involved, etc. As mentioned in a paper, part of last year's proceedings (Khalfan et al., 2004a), SCRI Research Centre is undertaking a research project which will look into the responses and change in behaviours of the different parties involved in a supply chain due to the changes in the current practices within the construction industry mainly due to innovative procurement routes. This paper will mainly focus on the management of supply and demand within the UK construction industry practices. The concept of aggregation is now being introduced not only to manage the supply of the construction services by the downstream supply chain participants, but at the same time, the concept of aggregating the demand is being adopted by leading clients to make most out of service providers and suppliers in terms of value. One of the elements which contributed towards the aggregation is the integration of the supply chain participants to adopt and respond to the current market situation. This paper will not only discuss the concept of aggregation but will also talk briefly about the other supply chain integration related concepts including client led supply chain, knowledge about the whole supply chain, effects of procurement on integration of supply chain, etc. The paper will also include examples from the UK construction industry on bundling the supply and demand.