Towards a Supply Chain Integration Theory in Offsite Construction: Insights From Industry Practices

The construction industry has long grappled with managing the supply chain, particularly in offsite projects.The supply chain management (SCM) concept flourished in manufacturing and plays an important role in increasing transparency and alignment of the supply chain.In the construction industry, not only building parts and materials manufactured in factories offsite but the aggregation of these parts and materials into building components assembled in offsite facilities (i.e., offsite construction of prefabricated and modular elements) adds complexity to the application of SCM.This paper, which is theoretical in nature, reports on the observation of two supply chain integration approaches implemented by two California construction companies using foundational perspectives of SCM.The results include a summary of the observed advantages and disadvantages using the following six perspectives: (1) target project type, (2) contract type, (3) business strategy, (4) production management methods, (5) supply chain management practices, and (6) organizational culture.An outline of what might become a supply chain integration and management theory to guide construction companies in developing appropriate strategies to realize the potential of offsite construction projects is presented.The proposed theory outline will need to be tested through future experimentation.