Construction Clemons Outsourcing

3650 Words15 Pages

The construction industry’s method of constructing structures has been changing over the past decade as technology has progressed. We have moved from labour intensive construction methods towards the integration of human and plant, which has increased the industry’s complexity. Yet the main outcome of the industry has not changed over the past 100 years which is to construct communities, educational institutions, and infrastructure, and residential buildings, commercial, industrial and health care buildings. The industry is fragmented and renowned for involving an assortment of both minor and large firms, associated bulk material suppliers, and numerous other professionals. (Benton & Mchenry, 2010) Currently the traditional method of construction …show more content…

This however poses its own set of questions, single versus multi sources. The principal advantage of multiple sourcing is the creation of a competitive and assured supply. It is generally accepted that competition has a direct colloration with costs being driven down. A simple example is the lack of competition in the electrical supply industry in South Africa, this results in the uncompetitive nature of the prices laid on consumers. The other factor is that multiple supplies assures an undisrupted stream of material. For example when brick manufacters go on strike, construction is not delayed as an alternative source was sourced in the beginning of the project. The principal advantage of single sourcing the supplier is more comfortable with reducing the cost per unit; another benefit is cooperation and communication which leads to win-win relationships amoung buyers and suppliers. Which is consistant with the subsequent part of Clemons’ …show more content…

Choices concerning the amount of suppliers can have a immense effect on the amount of interaction with suppliers and the level of rivirail between suppliers. A fraction of the suppliers delivers a sense of security to suppliers. It inspires suppliers to devote funds and human assets into the transaction liaison. A common perspective is that companies strive for a stability among the level of competition between supplier to accomplish economic proficiency and the level of teamwork with supplier to govern the dependability and quality of supplies. The level of market orientation of the TGS is indicated by the amount of suppliers used. The large amounts of supplier is related to the large level of market TGS (Zhang, Melcher, & Li,

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