Given the scale of the construction industry, its considerable contribution to the global economy and its impact on the environment, it’s somewhat surprising that it’s so far behind other sectors on the path to digital adoption
Yet few within the industry would doubt that the efficiency and sustainability of the construction supply chain would benefit from a committed migration to digital platforms; given the emergence of modern, software-based construction planning systems that utilise artificial intelligence (AI), there is no excuse for the sector to fall any further behind.
AI-based construction solutions to today’s challenges
When it comes to sustainability, the construction sector has a lot of catching up to do. It’s a lesser-known fact that the construction industry is responsible for around 38% of global CO₂ emissions. Given its considerable carbon footprint, it has a moral duty to bring this down to a much more palatable level. Therefore, innovative concepts that contribute to achieving climate protection goals are urgently needed.
An indispensable prerequisite for achieving this goal is the consistent digitisation and automation of processes. The main goal here is to relieve the burden on supply chains and reduce CO₂ emissions.
But industry processes are very rigid, especially when it comes to planning the requirements of building materials and designing logistics chains. By way of example, little attention is paid to the environmental friendliness and CO2 footprint of materials when selecting them. There is also usually no comprehensive overview of which building materials are needed in what quantities, where and when. This leads to complicated and often unnecessary transport routes for trucks and other vehicles.
Most processes are still based on paper documents, which also hinders consistent processes. Waybills and delivery documents are still often signed by hand and can easily get lost. The relevant data must be entered manually into IT systems, which is prone to error.
Material requirements planning: the key to efficiency and sustainability
In order to increase the efficiency of workflows, maximum transparency is required along the entire supply chain.
Materials must be ordered to actual requirements but, according to current studies, a double-digit percentage of building materials are ordered unnecessarily or used incorrectly, meaning they are not suitable for their intended purpose. This leads to inefficiencies in construction, drives up costs and is an obstacle on the way to greater sustainability.
However, optimised demand planning alone is not enough – attention should also be paid to where the material comes from. Consider too that building materials – such as concrete – are produced in different regions and countries according to different standards. This has a significant impact on quality and therefore also influences the CO2 footprint.
Therefore, it makes sense to purchase materials from regional suppliers. This shortens transport routes, which in turn conserves resources and minimises pollutant emissions.
AI-based construction planning for maximum process efficiency
Sustainability has been somewhat overshadowed by the recent tariff increases. While they are not a silver bullet, AI-equipped project planning tools enable construction companies to better manage the impact of tariff changes on their supply chains, particularly in the medium- to long-term.
When viewed as a risk mitigation tool, AI can assist in identifying alternative suppliers or materials not subject to high tariffs by analysing global trade data and market trends. It can enhance procurement strategies by optimising supplier selection, cost forecasting and contract management.
Beyond that, the technology can independently recognise certain conflicts in the procurement workflows. This is the case, for example, when ordering building materials that do not match the type or quantity of the building in question.
Here, AI can raise the alarm and initiate an optimisation of the processes. The result? Significantly less material waste and unnecessary transport, which noticeably relieves the burden on the supply chain.
Another advantage of AI-based planning systems is their ability to manage large amounts of data extremely well, analyse them comprehensively and draw the right conclusions from them.
“It’s a lesser-known fact that the construction industry is responsible for around 38% of global CO₂ emissions.“
By way of example, large construction companies work on numerous different projects in parallel and cooperate with a large number of suppliers who are spread across the entire country. The AI-supported evaluation of relevant data makes it possible to quickly see which delivery partners are suitable for a specific construction project, bringing more efficiency to the supply chain.
However, it is important to always keep an eye on the entire ecological balance, including the production of the materials, the type of transport and the delivery distance. It is possible that environmentally friendly concrete with a longer journey proves to be more sustainable when compared to a conventionally produced building material from the neighbouring town.
Such an overall view requires a large amount of valid data, which can be evaluated quickly and thoroughly using an AI solution, thus paving the way for sustainable and economically sensible decisions.
Construction companies and suppliers benefit from demand forecasts
AI-based construction planning tools based on big data analyses can also be used to precisely predict future demand for building materials, improving the coordination of logistics processes, optimising the use of budgets and significant aiding cost savings.
The manufacturers of building materials also benefit: they can use demand forecasts to closely monitor the market and align their production capacities accordingly.
The current share of renewable energies in the power grid can also have an influence on this. If, for instance, a lot of solar and wind energy is currently being fed into the grid, the production rate can be adjusted and increased accordingly. If there is less surplus energy, manufacturers can reduce production again. Ultimately, this increased flexibility has a positive effect on sustainability and climate protection.
AI-based construction tools determine the future of the industry
The analysis of large amounts of data and the targeted use of AI-based planning tools will drive the digitalisation of the construction industry in the future and a variety of positive effects can be achieved, including an efficient and sustainable supply chain, even against the backdrop of tariff increases.
*Please note that this is a commercial profile.
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