Supplier evaluation and development in construction: data-driven analyses

Julkaisun otsikon käännös: Supplier evaluation and development in construction: data-driven analyses

Abdollah Noorizadeh

Tutkimustuotos: Doctoral ThesisCollection of Articles


This dissertation studies the buyer's perspective on supplier evaluation and development within construction supply chain. Highlighting the multitude of suppliers in a construction firm's supply chain and the fragmented nature of the sector, former research emphasizes the essential role of implementing effective supply chain management (SCM) in construction industry. Extending this notion, adopting successful practices of supplier evaluation and development from other research and industry domains can be very beneficial to this sector. Thus, this study develops data-driven methods for supplier evaluation and development in construction using performance evaluations and purchase transaction data. The analysis involves data from suppliers that work for a large international construction firm and operated in Finnish construction projects during the period of 2010–2016. First, it is argued that supplier evaluation in a changing construction project environment differs from evaluation in the context of routine-based operations, such as manufacturing. Challenges with supplier evaluation in the context of construction projects are outlined, and a possible solution from the data envelopment analysis (DEA) context is developed and discussed. Next, it is suggested that combining DEA with the recency, frequency, and monetary value (RFM) concept and customer pyramid from marketing literature can improve supplier development (SD) investment efforts in construction. For effective SD resource allocation, suppliers are categorized based on the scores obtained from the applied framework. Then, building upon earlier research on productivity dynamics in economics and real options theory (ROT) for strategic investments with uncertainty, this work claims that there are certain patterns between the obtained supplier performance and the purchasing volume of the buying company. The study proposes that suppliers be categorized into exiting, surviving, and entering groups based on the discontinuity, continuity, and start of the buyer's purchase, respectively. This method can differentiate the influence of each supplier group from the company's supply chain performance. Finally, this study investigates supplier evaluation within the project lifecycle by testing whether the construction firm favors suppliers from the late or early project phases. Overall, this dissertation contributes to research on supplier evaluation and development by extending and presenting novel data-driven approaches in the construction supply chain context. For practitioners, the study provides effective methods to manage large supplier networks and evaluate strategic decisions to develop supplier portfolios over time.
Julkaisun otsikon käännösSupplier evaluation and development in construction: data-driven analyses
Myöntävä instituutio
  • Aalto-yliopisto
  • Peltokorpi, Antti, Vastuuprofessori
  • Kuosmanen, Timo, Ohjaaja
Painoksen ISBN978-952-64-0384-7
Sähköinen ISBN978-952-64-0385-4
TilaJulkaistu - 2021
OKM-julkaisutyyppiG5 Artikkeliväitöskirja


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