Supply chain integration through innovative procurement

Recent innovative procurement initiatives by the public sector construction clients within the UK are challenging the traditional ways of procuring construction projects. The new concepts and pract1ces are Intended to empower clients to exercise more control over the supply chain and generate more co-operation among project participants. The initiatives aim to: bnng project m~mbers closer together; integrate the supply chain; create greater trust; develop relat1onsh1ps on a long term basis; introduce a pain and gain culture; and reuse the knowledge on succeeding projects. This paper, with examples from the UK construction mdustry, presents the procurement initiatives of public sector clients to integrate the downstream supply cha1n members through innovative procurement strategies. This paper particularly highlights the benefits of, and the motivation towards innovative procurement resultmg mto mtegrat1on of supply chain members through four case studies conducted as part of a supply chain integration project at the SCRI research centre. The' paper defines the construction procurement and recent initiatives through policy documents within the UK. Then the methodology and case studies are presented followed by the findings. The paper concludes that, through clients' innovative initiatives, there is a great potential to integrate supply chain partiCipants. at the outset of a project, in order to achieve effective planning and delivery of the whole project, as well as greater collaboration among supply chain members working on the project. The findings also reveal that there is need for more efforts especially from the contracting orgamsat1ons to Integrate their key suppliers and manufacturers which are still operating through the traditional procurement process.