New Supply Chain Network in Brazil’s House Construction Industry

Brazil’s house construction industry is currently undergoing changes in its structure due to the new competitive environment. In São Paulo, among other states, production is passing from an in-house type to a subcontracted type. Finding an effective way to manage the supply chain is crucial for the success of this new situation. With the main focus on the Brazilian supply management in this industry, this paper seeks to identify and discuss the principal key factors the supply chain management has to be aware of in order to facilitate the implementation of lean production in construction projects in this country. From a brief review of literature that exists on supply chain management, four key factors can be identified to improve supply chain performance: lean designs, system reliability, supplier co-ordination and supplier development. Based on a description of the supply chain and current management procedures in this country, the relevance given to these key factors is discussed.