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The IUP Journal of Supply Chain Management :
Virtual Supply Chains: The Case of a Spanish Construction Company
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The construction sector differs to a large extent from other productive industries. Here, supply chains are specifically configured for every construction project, where each participant is specialized in particular activities based on core competencies. Nowadays, the market is forcing the setting up of Virtual Enterprises (VE) with a customer-oriented policy to facilitate the management, and to improve the efficiency of the construction project. Based on this context, the paper analyzes the case of a Spanish construction Small and Medium Enterprise (SME), which acts as the broker of the VE corresponding to each construction project. The paper examines the characteristics of this enterprise, the advantages for the customer, the difficulties of its creation, which occurs through the necessity of a cultural change in customers and suppliers, as well as the processes established to solve them.

The construction sector presents a series of peculiarities that makes it different from other productive sectors. One of the most important is the fact that the supply chain is configured for each individual construction project. The current trend of companies participating in these supply chains is towards greater specialization, especially when referring to construction processes. Likewise, some promoter and construction companies are establishing contracts with only one supplier, who constitutes a Virtual Enterprise, containing all or part of the members of the supply chain. This implies significant savings in cost and time and other advantages, such as better control of the outsourcing processes and the possibility of focusing the organization's energy in its core competences. The paper examines a real case of a Spanish construction company. This company configured a Virtual Enterprise from the point of view of customers (promoters or property) at the first level of the Supply Chain, acting as a broker.

Given the particular characteristics of the sector, the supply chain is different for each construction project. London and Kenley (2000) propose a method to describe Construction Supply Chains. The main criterion to establish the relations and structure is the initial identification of each particular project. The three key factors of the model are: the project, the participants and the relationships between them.

 
 
 

Virtual Supply Chains: The Case of a Spanish Construction Company, construction, Enterprise, core competences, Virtual Enterprise, customers (promoters or property), Supply Chain, construction project, Construction Supply Chains, organization's energy.