RT-363

Previous research has verified that supply chain integration that includes contractor, engineer, owner, and supplier can improve project performance. Advanced Work Packaging (AWP) successfully integrates contractors’ expertise into design and, as a result, it can increase predictability, improve productivity, and reduce the total installation cost. However, any consideration of suppliers is missing from AWP despite the fact that materials make up 50% of the project cost. A modernized supply chain that integrates suppliers into AWP maximizes AWP’s potential to enhance project performance.

To address this opportunity, CII created Research Team 363 (RT-363), Integrating the Supply Chain with AWP Practices. By conducting a survey and a series of interviews with suppliers, RT-363 found that the early involvement of suppliers and the clearer communication of customer requirements can address common but serious issues around materials. Specifically, early involvement allows suppliers to create value by participating in the design and provides time to refine customer requirements.

To ensure the early involvement of suppliers and promote clear information transfer, RT-363 recommends a series of improvements to work processes and the digital supply chain:

1. The recommended work processes consist of a rigorous supplier qualification program based on multiple criteria, a material responsibility matrix, and engineering deliverables that reflect vendor data.
2. The team’s recommendations on the digital supply chain include strengthening capabilities that support AWP execution, identifying the ideal functionalities to strengthen communication among stakeholders, and creating the new role of a digital coordinator who assures the smooth operation of the digital supply chain.