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E-Commerce Applications in Construction

Publication No
RS180-1
Type
Printable assessment(s)
Publication Date
Nov 01, 2002
Pages
15
Research Team
RT-180
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DOCUMENT DETAILS
Abstract
Key Findings
Filters & Tags
Abstract

With the current economic situation and the recent media frenzy about the “death of the dot-coms,” many would believe that e-commerce is all but dead. Recent CII research shows that e-commerce is alive and well—in fact, it is growing in almost all sectors of our industry. Our results demonstrate clearly that companies of every size and type should be considering some aspect of e-commerce in order to remain competitive and to enable the next evolution of performance.

CII gave its E-Commerce Applications in Construction Project Team (PT 180) a special assignment: conclude efforts within one year as opposed to the usual two years or more that many research efforts take. This was considered important because of the rapid changes occurring in e-commerce and the desire to keep the report fresh. This was accomplished.
Key Findings
Cultural barriers are a primary hurdle to overcome in implementing an e-Commerce solution. Top management must be engaged in supporting the implementation of an e-Commerce solution. However it is equally important that the change be managed and communicated not only throughout the implementing organization but also with the ancillary stakeholders such as the suppliers themselves. (RS180-1, p. 5)
Pressure may be applied to the overall effectiveness of the supply chain when suppliers must conform to the numerous e-Commerce systems being implemented by the owners. The suppliers are obligated to utilize these new tools but due to the lack of a standardized solution this may require suppliers to learn many different systems and processes. This is referred to as the “one-to-N” issue. The problems are magnified with local or regional suppliers that are unable to map their catalog to each of the buyer’s catalogs. (RS180-1, p. 4)

Owner A found key learning points (RS180-1, p. 6):

  • First was the need to assess the current organization and processes thoroughly. The focus was on purchasing of raw materials, equipment, construction services, and indirects. In this regard, it found that a centralized purchasing structure favors e-procurement and vice versa. 
  • Second was to build an e-procurement strategy to match the needs of the organization and its projects, which includes business drivers, cost, global needs, among others.
Filters & Tags
Knowledge Area
Business and Project Processes, Information Management Technology, Procurement & Contracts
Project Phase
Procurement
Project Function
Project Business Sponsor, Procurement & Contracts, External Stakeholders
Industry Group
Light Industrial, Heavy Industrial, Buildings, Infrastructure
Research Topic
e-Commerce Applications in Construction
Keywords
e-procurement, e-collaboration, e-commerce, Supply Chain, Marketplace, Procurement and Collaboration, Online Bidding, e-tools, rt180

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