Poor logistics costing industry £3bn

Poor logistics is costing the construction industry at least £3bn a year, the Strategic Forum for Construction said today (Friday).

In its report, Improving Construction Logistics, the forum puts additional costs down to operatives waiting for materials, secondary working of products on site and skilled craftsmen being used for unskilled jobs.

The forum also said poor logistics affects quality, causes delays to projects and adds to the health and safety risks on site.

The report claims project costs can be cut down by reducing transport movements, holding less stock, producing less waste and using skilled craftsmen more efficiently.

It added these measures will also reduce construction time, improve quality, reduce risks to health and safety, and generally improve the image of the industry.

An Action Plan for improving logistics in construction, which focuses on integrated project teams and supply chains has been set out.

It also recommended the increased uptake of information technology, including electronic communications, bar coding, and electronic tagging for tracing products.