Cost reduction through vertical integration of the in-situ concrete supply chain

Concrete is an important, widely used material in modern-day construction. The in-situ placement of concrete is performed at a significant cost for contractors. This study aimed to outline a method(s) to reduce this cost, by focusing on the reduction of the most significant costs in concreting system: material, plant hire, and resource idleness. An investigation was undertaken to determine if cost reduction could be achieved through a reconfiguration of the resource supply chain, in the form of vertical integration. In real terms this means that the contractor takes on the role of concrete manufacturer and on-site plant owner - removing the ready-mixed batch plant and on-site plant supplier from the existing supply chain. This would give the contractor more control over the key costs identified in the concreting system. To permit the vertical integration of the resources supply chain a reliable alternative to manufacturing concrete in an external batch plant was required. The financial viability of using a volumetric mobile mixer as an alternative source of concrete was assessed. This type of mixer manufactures concrete at the required location on a project with a high production rate and quality of concrete. The results of a cost/benefit analysis show that the reconfiguration of the resource supply chain can produce the desired system-wide reduction in contractor costs in concrete placement.