Leveraging Technology for Better Supply Chain Management in Construction

"Many supply chains are perfectly suited to the needs that the business had 20 years ago." Jonathan Byrnes (MIT Professor)

The construction industry is changing fast. We can no longer afford to use supply chains that are 20 years old. Technology is reshaping operations and the traditional construction supply chains have many issues:

• Lack of transparency
• Communication gaps
• Unpredictable material deliveries

While these may seem insignificant, they can be disastrous for the construction industry. These problems cause costly project delays and frustration; ultimately losing time, money, effort, and a loss of opportunity.

The good news is, now supply chains have become better with Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT).

This technology will make a big difference and we discuss some of those in this blog.

Artificial Intelligence (AI) and Machine Learning

Artificial Intelligence is everywhere, and it will soon speed up with the construction industry.

According to Mordor Intelligence, the global AI in construction market might reach $11.85bn by 2029.

According to Statista, as of 2024, less than 4% of construction companies are using AI in Construction.

Here’s how Artificial Intelligence and Machine Learning can change the game:

1. On the one hand, Artificial Intelligence can analyze past data and help predict any future demand fluctuations, so that companies can work with making their ordering more accurate and ensure there are sufficient materials for a smooth project delivery. This process can also optimize material procurement to a great extent.
2. On the other hand, Machine Learning tools can identify and flag any potential hazards on the construction site so that companies can mitigate risks and hazards as soon as possible. It can also learn from past transactions, personalize product recommendations, and spot supply chain disruptions.

A lot of this can help with better project management, warehousing, communication among stakeholders, and looking out for problems and risks.

Internet of Things (IoT)

Before we talk about how the Internet of Things (IoT) can make construction safer, let’s understand what it is.

IoT for construction can include devices connected to the internet, lie sensors, drones, robotics, and mobile devices.

According to Straits Research, the global construction market size for the Internet of Things is estimated to reach around $30bn by 2030.

One of the major areas that is seeing rapid development and looks promising is wearable devices that can help prevent fatal injuries in construction.

For example, IoT-based wearables can prevent fatal injuries and prevent falls. Falls have contributed to 30% of construction-related injuries in the past and are a big problem currently.

IoT sensors can track material location and condition. They can provide real-time visibility into material movement and optimize delivery schedules and identify delays.

These ideas seem highly promising. But it’s not just this, there are advancements already happening around the globe, and India is leading the movement from the forefront.

New Trends in Technology in the Construction Industry

1/ AI-Powered Project Management

• AI-powered project management tools are now using machine learning algorithms and data analytics to process vast amounts of project-related information, helping improve planning and scheduling

2/ Predictive Analytics

• AI algorithms are now assessing historical data to predict risks, like equipment failures and supply chain disruptions, and are enabling proactive issue resolution.

Conclusion The construction industry, which was once thought to be a late-adopter of technology, has started to understand and utilize the massive benefits of the adaptation of technology. As a result, the future of construction looks more efficient, safe, and convenient for all stakeholders.