Open Access Journal Article

Monetised sustainability impacts of integrated planning in the manufactured construction products industry: A transport perspective from New Zealand

by Kamal Dhawan a,* ,  John E. Tookey a ,  Ali GhaffarianHoseini a  and  Mani Poshdar a
a
Built Environment Engineering Department, Auckland University of Technology, Auckland, New Zealand
*
Author to whom correspondence should be addressed.
JEA  2024 3(4):83; https://doi.org/10.58567/jea03040009
Received: 26 October 2023 / Accepted: 11 December 2023 / Published Online: 15 December 2024
View Full-Text
Download PDF

Abstract

The extensive, interdisciplinary nature of construction supply chains make them prone to inefficiencies at organisational interfaces. Inefficiencies are accentuated by the project-centric delivery paradigm, and complex logistics systems between multiple stakeholders. They manifest as a multitude of concurrent activities, processes, and systems both on and off-site. Transportation is the largest component of the logistics domain. Transport operations are inherently fragmented, intrinsic to every business, while vehicle ownership and deployment is typically externalised. Differentiated waste removal and materials delivery further disintegrate the already fragmented construction supply chain. Inefficiencies from the insularity of the planning process across segmental boundaries aggregate incrementally, with impacts visible at the macro level. Re-configuration of activities, resources and actors are acknowledged strategies for optimising logistics and transportation function. This paper investigates the impact of three integration strategies on a manufactured construction products supply chain efficiency. These strategies include vertical integration of distribution, integrated planning for transport operations, and integration of reverse logistics into operations. Sustainability impacts are evaluated according to domestically determined monetary parameters in order to benchmark performance at the business and national scale.

Keywords: Integrated planning; Construction logistics; Sustainable freight transport; Sustainability monetisation; Transport externalities;
Copyright: © 2024 by Dhawan, Tookey, GhaffarianHoseini and Poshdar. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

Share and Cite

ACS Style
Dhawan, K.; Tookey, J. E.; GhaffarianHoseini, A.; Poshdar, M. Monetised sustainability impacts of integrated planning in the manufactured construction products industry: A transport perspective from New Zealand. Journal of Economic Analysis, 2024, 3, 83. https://doi.org/10.58567/jea03040009
AMA Style
Dhawan K, Tookey J E, GhaffarianHoseini A, Poshdar M. Monetised sustainability impacts of integrated planning in the manufactured construction products industry: A transport perspective from New Zealand. Journal of Economic Analysis; 2024, 3(4):83. https://doi.org/10.58567/jea03040009
Chicago/Turabian Style
Dhawan, Kamal; Tookey, John E.; GhaffarianHoseini, Ali; Poshdar, Mani 2024. "Monetised sustainability impacts of integrated planning in the manufactured construction products industry: A transport perspective from New Zealand" Journal of Economic Analysis 3, no.4:83. https://doi.org/10.58567/jea03040009
APA style
Dhawan, K., Tookey, J. E., GhaffarianHoseini, A., & Poshdar, M. (2024). Monetised sustainability impacts of integrated planning in the manufactured construction products industry: A transport perspective from New Zealand. Journal of Economic Analysis, 3(4), 83. https://doi.org/10.58567/jea03040009

Article Metrics

Article Access Statistics

References

  1. Agapiou, A., Flanagan, R., Norman, G., & Notman, D. (1998). The changing role of builders merchants in the construction supply chain. Construction Management & Economics, 16(3), 351-361. https://doi.org/10.1080/014461998372376
  2. Alashwal, A., & Hamzah, A. (2014). Developing a conceptual framework of fragmentation in construction. Department of Quantity Surveying, Faculty of Built Environment, University of Malaya. https://www.library.auckland.ac.nz/external/finalproceeding/Files/Papers/46530final00176.pdf
  3. Alashwal, A. M., & Fong, P. S.-W. (2015). Empirical study to determine fragmentation of construction projects. Journal of Construction Engineering and Management, 141(7), 04015016. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000986
  4. Balm, S., & Ploos van Amstel, W. (2018). Exploring criteria for tendering for sustainable urban construction logistics. City Logistics 1: New Opportunities and Challenges, 251-263. https://doi.org/10.1002/9781119425519.ch13
  5. Barbosa, F., Woetzel, J., & Mischke, J. (2017). Reinventing construction: A route of higher productivity. https://www.mckinsey.com/capabilities/operations/our-insights/reinventing-construction-through-a-productivity-revolution
  6. Barreyre, P. (1988). The concept of ‘impartition’policies: a different approach to vertical integration strategies. Strategic management journal, 9(5), 507-520. https://doi.org/10.1002/smj.4250090509
  7. Berden, M., & van Amstel, W. P. (2017). Analysis construction logistics calculation models and factors that obstruct their development. https://pure.hva.nl/ws/portalfiles/portal/4914089/2017_06_01_D.2.1_FINAL_ANONIEM_1_.pdf
  8. Bongardt, D., Stiller, L., Swart, A., & Wagner, A. (2019). Sustainable Urban Transport: Avoid-Shift-Improve (ASI). Transformative Urban Mobility Initiative. https://www.transformative-mobility.org/wp-content/uploads/2023/03/ASI_TUMI_SUTP_iNUA_No-9_April-2019-Mykme0.pdf
  9. Bowersox, D., Closs, D., & Cooper, M. (2002). Supply Chain Logistics Management McGraw Hill. International edition.
  10. Bowersox, D. J., & Closs, D. J. (1996). Logistical management: the integrated supply chain process. The McGraw-Hill Companies.
  11. Briggs, D., Mason, K., & Borman, B. (2016). Rapid assessment of environmental health impacts for policy support: the example of road transport in New Zealand. International journal of environmental research and public health, 13(1), 61. https://doi.org/10.3390%2Fijerph13010061
  12. Building Research Establishment. (2003). Construction Site Transport: The Next Big Thing. In: BRE Watford, UK.
  13. Chatziioannou, I., Alvarez-Icaza, L., Bakogiannis, E., Kyriakidis, C., & Chias-Becerril, L. (2020). A structural analysis for the categorization of the negative externalities of transport and the hierarchical organization of sustainable mobility’s strategies. Sustainability, 12(15), 6011. https://doi.org/10.3390/su12156011
  14. Chopra, S., Meindl, P., & Kalra, D. V. (2013). Supply chain management: strategy, planning, and operation (Vol. 232). MA: Pearson Boston.
  15. Climate Change Commission New Zealand. (2021). Recommendations from Ināia tonu nei: a low-emissions future for Aotearoa. https://environment.govt.nz/assets/publications/Files/The-Governments-response-to-He-Pou-a-Rangi-Climate-Change-Commissions-recommendations.pdf
  16. Commerce Commission New Zealand. (2022). Residential building supplies market study: Final report. https://comcom.govt.nz/__data/assets/pdf_file/0014/300704/Residential-Building-Supplies-Market-Study-Final-report-6-December-2022.pdf
  17. Cook, T. D., Campbell, D. T., & Shadish, W. (2002). Experimental and quasi-experimental designs for generalized causal inference (Vol. 1195). Houghton Mifflin Boston, MA.
  18. Dani, A. A., Roy, K., Masood, R., Fang, Z., & Lim, J. B. (2022). A comparative study on the life cycle assessment of New Zealand residential buildings. Buildings, 12(1), 50. https://doi.org/10.3390/buildings12010050
  19. Deloitte. (2018). Cost of residential housing development: A focus on building materials. https://www2.deloitte.com/content/dam/Deloitte/nz/Documents/Economics/nz-en-DAE-Fletcher-cost-of-residential-housing-development.pdf
  20. Dhawan, K. (2023). Supply Chain Management Driven Logistics Efficiency in the New Zealand Construction Sector. https://openrepository.aut.ac.nz/items/154f41af-f1de-45ba-accf-1feec5795c6e
  21. Dhawan, K., Tookey, J. E., GhaffarianHoseini, A., & Poshdar, M. (2023). Using Transport to Quantify the Impact of Vertical Integration on the Construction Supply Chain: A New Zealand Assessment. Sustainability, 15(2), 1298. https://doi.org/10.3390/su15021298
  22. Edenhofer, O. (2015). Climate change 2014: mitigation of climate change (Vol. 3). Cambridge University Press. https://www.ipcc.ch/report/ar5/wg3/
  23. Ekeskär, A., & Rudberg, M. (2016). Third-party logistics in construction: the case of a large hospital project. Construction management and economics, 34(3), 174-191. http://doi.org/10.1080/01446193.2016.1186809
  24. Ernst & Young. (2021). The Value of Rail in New Zealand. https://www.transport.govt.nz/assets/Uploads/Report/EY-Report-Externality-value-of-rail-2020.pdf
  25. Firestone, W. A. (1993). Alternative arguments for generalizing from data as applied to qualitative research. Educational researcher, 22(4), 16-23. https://doi.org/10.3102/0013189X022004016
  26. Guan, W., & Rehme, J. (2012). Vertical integration in supply chains: driving forces and consequences for a manufacturer's downstream integration. Supply chain management: An international Journal, 17(2), 187-201. https://doi.org/10.1108/13598541211212915
  27. Guerlain, C., Renault, S., & Ferrero, F. (2019). Understanding construction logistics in urban areas and lowering its environmental impact: A focus on construction consolidation centres. Sustainability, 11(21), 6118. https://doi.org/10.3390/su11216118
  28. Heale, R., & Twycross, A. (2015). Validity and reliability in quantitative studies. Evidence-based nursing, 18(3), 66-67. https://doi.org/10.1136/eb-2015-102129
  29. Henningsen, R. (2000). Study of greenhouse gas emissions from ships. Final report to the International Maritime Organization. MARINTEK, Trondheim, Norway. https://wwwcdn.imo.org/localresources/en/OurWork/Environment/Documents/First%20IMO%20GHG%20study.pdf
  30. Hrablik, H., Horňáková, N., & Babčanová, D. (2015). Use of Operational Research Methods in Logistics. In Proceedings of the Carpathian Logistics Congress 2015. Retrieved from https://www.academia.edu/31782145/USE_OF_OPERATIONAL_RESEARCH_METHODS_IN_LOGISTICS
  31. Janné, M. (2018). Construction logistics solutions in urban areas. Linköping University Electronic Press. http://doi.org/10.3384/lic.diva-147536
  32. Janné, M. (2020). Construction logistics in a city development setting. Linköping University Electronic Press. http://doi.org/10.3384/diss.diva-170231
  33. Janné, M., & Fredriksson, A. (2019). Construction logistics governing guidelines in urban development projects. Construction innovation, 19(1), 89-109. http://doi.org/10.1108/CI-03-2018-0024
  34. Janné, M., Fredriksson, A., Berden, M., & van Amstel, W. (2018). Smart construction logistics. Construction in Vicinities: Innovative Co-creation (CIVIC). https://www.researchgate.net/publication/327281275_SMART_CONSTRUCTION_LOGISTICS
  35. Jones, K., Mosca, L., Whyte, J., Davies, A., & Glass, J. (2022). Addressing specialization and fragmentation: product platform development in construction consultancy firms. Construction management and economics, 40(11-12), 918-933. https://doi.org/10.1080/01446193.2021.1983187
  36. Khan, M., & Lockhart, J. (2019). Embedding corporate social responsibility into business practice: lessons learned from New Zealand. Clean, Green and Responsible? Soundings from Down Under, 87-105. http://doi.org/10.1007/978-3-030-21436-4_6
  37. Kohn, C., & Brodin, M. (2008). Centralised Distribution Systems and the Environment: How Increased Transport Work Can Decrease the Environmental Impact of Logistics. International Journal of Logistics Research and Applications, 11(3), 229–245. https://doi.org/10.1080/13675560701628919
  38. Krejcie, R. V., & Morgan, D. W. (1970). Determining sample size for research activities. Educational and psychological measurement, 30(3), 607-610. https://doi.org/10.1177/001316447003000308
  39. Lovell, A., Saw, R., & Stimson, J. (2005). Product value‐density: managing diversity through supply chain segmentation. The International Journal of Logistics Management, 16(1), 142-158. https://doi.org/10.1108/09574090510617394
  40. Madadi, A., Kurz, M. E., & Ashayeri, J. (2010). Multi-level inventory management decisions with transportation cost consideration. Transportation Research Part E: Logistics and Transportation Review, 46(5), 719-734. https://doi.org/10.1016/j.tre.2009.12.012
  41. Massey University. (2023a). Health burden of road transport. https://www.ehinz.ac.nz/indicators/transport/health-burden-of-road-transport-2/#:~:text=Heavy%20Goods%20Vehicles%3A%2051.5%20deaths,19.8%20deaths%20per%20billion%20VKT
  42. Massey University. (2023b). Number of Motor Vehicles. ehinz. https://www.ehinz.ac.nz/assets/Factsheets/Released_2023/2023_FS_NumberOfVehicles.pdf
  43. McKinnon, A. (2010). European freight transport statistics: limitations, misinterpretations and aspirations. 5th ACEA Scientific Advisory Group Meeting. Brussels, Belgium: Association des Constructeurs Européens d'Automobiles.
  44. McKinnon, A. (2015). Performance measurement in freight transport: Its contribution to the design, implementation and monitoring of public policy. Logistics Development Strategies and Performance Measurement, 45. http://www.itf-oecd.org/performance-measurement-freight-transport-0
  45. McKinnon, A. C., & Ge, Y. (2006). The potential for reducing empty running by trucks: a retrospective analysis. International Journal of Physical Distribution & Logistics Management, 36(5), 391-410. https://doi.org/10.1108/09600030610676268
  46. Ministry for the Environment New Zealand Government. (2022). Towards a Productive, Inclusive and Sustainable Economy: Aotearoa New Zealand's First Emissions Reduction Plan. https://environment.govt.nz/assets/publications/Aotearoa-New-Zealands-first-emissions-reduction-plan.pdf
  47. Ministry of Business Innovation and Employment New Zealand Government. (2021). Sustainable Biofuels Mandate: Final Policy Design. https://www.mbie.govt.nz/dmsdocument/18372-sustainable-biofuels-mandate-final-policy-design-regulatory-impact-statement-proactiverelease-pdf
  48. Ministry of Business Innovation and Employment New Zealand Government. (2022). Building and Construction Sector Trends. https://www.mbie.govt.nz/dmsdocument/25439-building-construction-sector-trends-annual-report-2022
  49. Ministry of Transport New Zealand Government. (2020a). 2020 Green Freight Strategic Working Paper. https://www.transport.govt.nz/assets/Uploads/Paper/Green-Freight-Strategic-Working-Paper_FINAL-May-2020.pdf
  50. Ministry of Transport New Zealand Government. (2020b). Fleet Statistics. https://www.transport.govt.nz/statistics-and-insights/fleet-statistics/
  51. Ministry of Transport New Zealand Government. (2020c). Road Transport. Retrieved 15 November from https://www.transport.govt.nz/statistics-and-insights/road-transport/sheet/vehicle-kms-travelled-vkt
  52. Ministry of Transport New Zealand Government. (2020d). Transport Outlook. Retrieved 15 November from https://www.transport.govt.nz/statistics-and-insights/transport-outlook/sheet/updated-future-state-model-results
  53. Ministry of Transport New Zealand Government. (2021). Hīkina te Kohupara–Kia mauri ora ai te iwi–Transport emissions: Pathways to net zero by 2050. https://www.transport.govt.nz/assets/Uploads/Discussion/DiscussiondocumentHikinateKohuparaKiamaurioraaiteiwiTransportEmissionsPathwaystoNetZeroby2050.pdf
  54. Ministry of Transport New Zealand Government. (2022). Te rautaki ueā me te rautaki whakawhiwhinga o Aotearoa | New Zealand freight & supply chain issues paper. https://www.transport.govt.nz/assets/Uploads/Freight-and-supply-chain-issues-paper-full-version.pdf
  55. Ministry of Transport New Zealand Government. (2023). Domestic Transport Costs and Charges Study: Working Paper C5 - Road Vehicle Operating Costs. https://www.transport.govt.nz/assets/Uploads/DTCC-WP-C5-Road-VOC-June-2023.pdf
  56. Naismith, N., Monaghan, B., Zhang, T., Doan, D., GhaffarianHoseini, A., & Tookey, J. (2016). Examining the productivity in the NZ construction industry. The 2nd NZAAR International Event Series on Natural and Built Environment, Cities, Sustainability and Advanced Engineering, Kuala Lumpur. http://ongru.com/pdf/b13.pdf
  57. Nelson, J. M. B., Elliot, G., Pickering, K. L., & Beg, M. D. H. (2022). Preliminary materials flow analysis for Aotearoa New Zealand’s building construction sector.
  58. Neuman, W. L. (2014). Pearson new international edition social research methods: qualitative and quantitative approaches. England. Pearson Education Limited.
  59. New Zealand Transport Agency. (2023). Monetised Benefits and Costs Manual. https://www.nzta.govt.nz/assets/resources/monetised-benefits-and-costs-manual/Monetised-benefits-and-costs-manual.pdf
  60. Pahlén, P.-O., & Börjesson, F. (2012). Measuring resource efficiency in long haul road freight transport. Proceedings of the 24th Annual Nordic Logistics Research Network (NOFOMA) Conference, Naantali, Finland,
  61. Polit, D. F., & Beck, C. T. (2010). Generalization in quantitative and qualitative research: Myths and strategies. International journal of nursing studies, 47(11), 1451-1458. https://doi.org/10.1016/j.ijnurstu.2010.06.004
  62. Reserve Bank of New Zealand. (2023). Inflation Calculator. https://www.rbnz.govt.nz/monetary-policy/about-monetary-policy/inflation-calculator
  63. Riazi, S. R. M., Zainuddin, M. F., Nawi, M. N. M., Musa, S., & Lee, A. (2020). A critical review of fragmentation issues in the construction industry. Journal of Talent Development and Excellence, 12(2). https://salford-repository.worktribe.com/preview/1488272/545-Article%20Text-947-1-10-20200514.pdf
  64. Santamouris, M., & Vasilakopoulou, K. (2021). Present and future energy consumption of buildings: Challenges and opportunities towards decarbonisation. e-Prime-Advances in Electrical Engineering, Electronics and Energy, 1, 100002. https://doi.org/10.1016/j.prime.2021.100002
  65. Shakantu, W., & Emuze, F. (2012). Improving H&S by Limiting Transport Externalities in South Africa. Proceedings for the 20th Annual Conference of the International Group for Lean Construction (IGLC)(San Diego, USA: IGLC),
  66. Silva, C. (2018). Auckland’s urban sprawl, policy ambiguities and the peri-urbanisation to Pukekohe. Urban Science, 3(1), 1. https://doi.org/10.3390/urbansci3010001
  67. Smith, R., Kersey, J., & Griffiths, P. J. (2002). The Construction Industry Mass Balance: resource use, wastes and emissions. Viridis Report VR4.
  68. Szymonik, A. (2012). Logistics and supply chain management. Technical University of Lodz Press Lodz, Poland.
  69. Taha, H. A. (2013). Operations research: an introduction. Pearson Education India.
  70. Trochim, W. (2000). The research methods knowledge base (2nd edn)(Cincinnati, OH, Atomic Dog).
  71. Uzorh, A., & Innocent, N. (2014). Supply chain management optimization problem. The International Journal of Engineering and Science (IJES) 3 (2014), 6, 1-9. http://doi.org/10.13140/RG.2.2.19682.58566
  72. Verlinde, S. (2015). Promising but challenging urban freight transport solutions: freight flow consolidation and off-hour deliveries Ghent University]. https://biblio.ugent.be/publication/5985077
  73. Vidalakis, C., & Sommerville, J. (2013). Transportation responsiveness and efficiency within the building supply chain. Building Research & Information, 41(4), 469-481. https://doi.org/10.1080/09613218.2012.715824
  74. Vidalakis, C., & Tookey, J. E. (2005). The involvement of builders' merchants in the development of improved construction logistics. Proceedings of the 2nd Scottish Conference for Postgraduate Researchers of the Built and Natural Environment (PRoBE),
  75. Vidalakis, C., Tookey, J. E., & Sommerville, J. (2011). The logistics of construction supply chains: the builders' merchant perspective. Engineering, construction and architectural management, 18(1), 66-81. https://doi.org/10.1108/09699981111098694
  76. Vrijhoef, R. (2015). Reducing the environmental impact and improving the efficiency of construction transport. https://repository.tudelft.nl/islandora/object/uuid:00e799d8-daba-42b1-ade3-059dc0b768ff/datastream/OBJ/download
  77. Wang, H., McGlinchy, I., & Samuelson, R. (2019). Real-World Fuel Economy of Heavy Trucks. Proceedings of the Transport Knowledge Conference, Wellington, New Zealand,
  78. Yin, R. K. (2004). Casestudy research: designs and methods. Harvard Educational Review, 74(1), 107-109.
  79. Ying, F., & Tookey, J. (2014). Managing logistics cost–A missing piece in Total Cost Management ICEC IX World Congress, Milano, Italy.
  80. Ying, F. J., Tookey, J., & Roberti, H. (2014). Development of SCM competencies in construction: Lessons learned from New Zealand. http://openrepository.aut.ac.nz