Super-charging supply chains - through 'relational integration' for 'overall value'

Abstract

‘Relational integration’ means more than mere ‘structural integration’; and is needed for generating ‘genuine’ and sustainable collaboration in construction. However, higher levels of integration can evidently not be reached without a specially formulated and consolidated set of focal points. Relational integration and convergent agendas can therefore be targeted through directing a common focus on the ‘overall value’ of the ‘supply network’. To this end, ‘Relationally Integrated Value Networks’ (RIVANS) are conceptualised to engage and empower their members towards both short-term and long-term overall ‘network value elements’ that must be suitably structured and made explicit. These common network value elements and corresponding goals should then loom larger in project landscapes, but should also be designed to co-exist with each set of network member-specific value objectives. Whilst aligning the latter as much as possible towards the former, it is recognised that each organisation e.g. a sub-contractor or specialist supplier, will have some other (‘extra-network’ or ‘beyond network’) needs; and may indeed be part of other value networks. However, each network can benefit from healthy inputs from, and benchmarking against other networks. Secondly, the strengths of each network will be enhanced by the steady development of each of its members. The paper will explore the potential and pitfalls in developing such RIVANS, incorporating relevant outputs from two case studies of enlightened teamworking, and two subsequent Workshops deliberating RIVANS possibilities. The needs for, and potential impacts of the RIVANS initiative are heightened in the present major economic downturn, and indeed during other periodic troughs in industry and market cycles. Relationally integrated networks should be more resilient in withstanding such pressures, while achieving critical efficiencies for reaching necessarily higher performance levels in general.