Principles for the design and operation of engineer-to-order supply chains in the construction sector

By integrating the approaches of Jay Forrester (1961) and Burbidge (1961), a set of 5 design principles have emerged which provide a foundation for sound supply chain design. The ‘FORRIDGE’ principles have since been shown to be a powerful guide for effective design of make-to-stock supply chains. However, some have questioned the applicability of generic supply chain thinking, arguing for a tailored approach. Hence, the goal here is to investigate how these principles should be adapted for engineer-to-order industries (ETO), such as construction, capital goods and shipbuilding. The empirical elements draw on an extensive study of 12 suppliers and 2 large contractors in the construction industry. Supply chain tactics are identified for this range of companies, which are matched with real world problems, and linked with the FORRIDGE principles. This results in an additional ‘Design for X’ principle being proposed. The contributions made are the adaptation of established principles for the ETO sector, and the framework behind these principles.