Interserve Project Services Supply Chain Development

• Analysed the critical success factor and written these in a form suitable for
dissemination to the wider supply chain and industry
• Trained internal facilitators in continuing the delivery and development of this work.
Project scope
1.4 The scope of this project was limited to the work of Interserve and its supply chains. Most
of the research was focused on modern contracting arrangements involving long-term
client-contractor relationships.
Report structure
1.5 The report is divided into three sections. This, the ‘Introduction to the Project’ section,
explains the background to the project and its activities. The next section provides six
case studies from the project’s activities that illustrate a number of useful lessons for
developing contractor’s supply chains. The final section describes the issues that need to
be resolved against a suggested supply chain development framework. Actions are
suggested to help improve a contractor’s supply chain performance alongside each issue.
1.6 Three appendices have been included. Appendices 1 and 2 are designed to assist
readers who may be new to supply chain development. Appendix 1 provides an
explanation of some of the supply jargon the reader is likely to encounter. Appendix 2
gives a list of resources the reader may find useful to further their knowledge and
understanding related to construction supply chains. Appendix 3 is Team Health Check
Tool to allow a supply chain team to monitor its members' perception of the team’s health.
1.7 The suggested actions are those of the consultant and do not necessarily represent those
of Interserve Project Services or its supply chain partners.
PROJECT BACKGROUND
Interserve’s business strategy
1.8 Interserve Project Services Limited took the strategic decision in the late 1990’s to
undertake the majority of its construction activity through framework contracts. The
company built up expertise in developing its supply chains with central government
departments and blue chip clients. More information on the company’s activities can be
found by visiting its website: www.interserveplc.co.uk
Integrating the Supply Chain – Phase 1 Report
The report presented the results of a CITB Special Measures Project focused on developing integrated
construction supply chains. The work was undertaken between May 2002 and June 2003 and involved the
support of Interserve Project Services and their framework supply chain partners.
The research found that a great deal of progress has been made over the last five years by the construction
industry in developing integrated supply chains particularly at first tier level. The challenge was to continue the
development process down through the supply chain into the SMEs. In the case of long-term framework
agreements there was a real opportunity to achieve the goal of a fully integrated supply chain and integrated
project teams in the medium to long term.
The report concluded that focusing on supply chain management and logistics in isolation will not work. It
requires a whole industry approach to provide existing and new construction personnel - particularly those
working in SMEs - with the management knowledge and skills necessary to support a fully integrated supply
chain. To achieve this will require a new level of partnership between clients and employers and their
organisations, professional institutions, trade associations, education, training and funding providers, government
departments and agencies. Strong leadership will be required to develop the level of openness and trust required
in areas where there has been suspicion in the past.
Research and development
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