The delivery of the right materials at the right time and to the right place determines the efficiency of the site.
We have now harnessed our almost three decades of solid logistics expertise and the best practices and lessons learned in the industry for the construction sector as well.
Juho Lappalainen, who manages our Construction Logistics service, says that this is the most comprehensive service on the market. In addition to the management of the in-house logistics of the construction site, it comprises transport-related services, intermediate storage, warehousing and temporary staffing. Our service package is tailored to the customer’s needs – whether the customer is a construction company, a developer, a main contractor, a supplier or a subcontractor of a construction site or their supplier.
“We handle the planning and coordination of logistics and the delivery of goods to the site. The service package comprises the intermediate storage of construction materials transported by suppliers, deliveries to the construction site and carry-ins at the site,” Lappalainen says.
A big productivity leap at the site – sights set on takt production
In the construction sector, efficiently organized logistics means a significant productivity leap. As material delivery delays and waiting times are eliminated, lead times are shortened, the quality of work is improved and materials are saved. “Punctual deliveries make the site’s takt schedules work,” Lappalainen says.
Storing excess material at the constantly changing construction site hinders the efficient implementation of ongoing work phases. Installation work must be carried out in confined spaces, which can undermine occupational safety and quality. When excess materials are stored in an external warehouse, they are not in the workers’ way at the site and do not need to be moved from place to place as the project progresses.
“Professionals can focus on the actual work, and their valuable time isn’t spent on moving materials around. The amount of material loss is also reduced when materials are stored in a warehouse protected against the weather, not exposed to the rain at the site.”
Transparent pricing makes budgeting easier
Having previously worked for 12 years in production management and supervisory positions at construction sites, Lappalainen is well acquainted with the challenges and pain points related to construction logistics. Our service includes elements that he himself would have needed at the sites. One such element is the transparent pricing of logistics services. Instead of charging by the hour, our services are mainly priced on an accrual basis.
“Our model allows construction companies to move from the world of fixed facility and personnel costs to flexible and performance-based service contracts.”
We have set a standard price for all the most common performances, from transport to warehousing and carry-ins, whether we are talking about furniture, household appliances, interior doors, tiles or drywall. “Cost transparency makes it considerably easier for contractors to get an accurate picture of logistics costs right from the start of the project. Costs are also easier to track and control as the project progresses.”
Detailed information on the status of goods orders
Organizing efficient logistics requires a comprehensive tracking system. With our digital system, the status of entire supply chain can be tracked at the construction site in real time 24/7. This allows sites to conveniently take care of inventory control, delivery confirmation data, time stamps and job booking, among other tasks. “The supervisor doesn’t need to call around asking if the order has been received and when the goods will be delivered. They can see the up-to-date situation in the tracking system.”
Any detected transport damage is also recorded in the system, which makes it possible to react to it without delay. Detecting defective material only at the site always causes additional costs, and delivering a new batch takes time.
Our operating model also enables efficient combining of transports. Several smaller deliveries can be combined with loads arriving from immediate storage, which reduces costs and truck traffic at the construction site. “Smart planning of transports also reduces emissions.”
Toward a genuine productivity leap
When logistics is entrusted to a reliable partner, the company can focus on its core operations. Our customers have achieved average cost savings of 10–30% through, for example, the optimization of material flows, streamlining of material logistics and continuous improvement of operations.
“We believe that efficient construction site logistics improves productive work in the sector and results in cost savings of 10% on average,” Lappalainen estimates.
Our strong investments in Lean Six Sigma expertise help improve productivity. It is utilized in optimizing material flows and improving cooperation between the different players in a project. More than 150 Transval employees are also Lean experts in continuous improvement.