Improving Construction Supply Network Visibility by Using Automated Materials Locating and Tracking Technology

The accumulation of material buffers is commonly perceived within the construction industry as an effective means of shielding a project from the risks associated with uncertainty in the supply network. Much of the uncertainty arises out of a lack of visibility throughout the construction supply network, in which visibility refers to the level of awareness of the overall state of the supply network. The integration of Automated Materials Locating and Tracking Technologies (AMLTT) within the construction supply network presents a viable solution to this problem. This article presents the results of an investigation that examined the potential for AMLTT to increase work opportunities at the site level as a result of increased supply-network visibility and in turn reduce the dependency on material buffers. The investigation was completed by using a modeling and simulation approach grounded on a solid foundation of field data and experience. The results presented here are increasingly important as leaders in other industry sectors are beginning to report tangible benefits as a result of increased supply-network visibility as a result of the integration of AMLTT within their organizations’ supply networks.