Effects of employing third-party logistics arrangements in construction projects

Abstract

Third-party logistics (TPL) arrangements are becoming a regular occurrence in urban construction projects. The industry is, however, still apprehensive regarding the effects that TPL arrangements bring. The purpose of this study is therefore to investigate the effects that can be realised when employing a logistics arrangement in construction, including possible benefits, concerns, and effects on cost elements. The purpose is fulfilled through a case study of a large construction project in Sweden that has employed a TPL arrangement. Results show that there are positive effects to achieve in terms of logistics performance and project performance, but that the main challenge to achieve these effects is to include all supply chain actors to reach a higher level of SCM maturity. This inclusion can be achieved through a better dialogue amongst supply chain actors to create an understanding for why TPL is employed and why policies and regulations needs to be followed.