Market Research Shows Lack of Knowledge About Construction Sector Supply Chains

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28th June 2013 11:23 - Construction

A market research survey conducted for Achilles, who deal with supply chain management for clients including Costain, Balfour Beatty, Laing O’Rourke and Network Rail, has revealed that just over one in ten construction companies do not know who their suppliers’ suppliers are. The survey considered the views of procurement managers, Directors and buyers within 131 large UK firms (over 250 employees).

The survey uncovered that three fifths (60%) of construction companies had doubts about, or were dissatisfied with the ability of their supply chain with other half being aware of a supplier who was unable to meet compliance requirements. 

Of all the industries surveyed, it was the construction sector which showed the least confidence that data about its suppliers was correct.  Stephen Marshall, Manager of Achilles’ Construction Industry Supply Chain Accreditation Standard, BuildingConfidence, said:

“We believe that at present, the construction sector could have its own version of the horse meat scandal.”

Don Ward, Chief Executive of Constructing Excellence, reports:

 “Flagship programmes such as the Olympics and Crossrail have showcased the UK’s leading capability and expertise in delivering supply chain visibility and assurance – but we must not be complacent.

He continued:

“[The] industry should look to continuously improve by routinely investigating and checking exactly who is working on projects.”

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