Optimizing construction supply chains through AI: Streamlining material

procurement and logistics for project success

Olorunshogo Benjamin Ogundipe 1, *, Azubuike Chukwudi Okwandu 2 and Sanni Ayinde Abdulwaheed 3
1 Department of Mechanical Engineering, Redeemer’s University, Ede, Osun-State, Nigeria.
2 Arkifill Resources Limited, Port Harcourt, Rivers State Nigeria.
3 Construction Manager, Osun State, Nigeria.

GSC Advanced Research and Reviews, 2024, 20(01), 147–158

Publication history: Received on 05 June 2024; revised on 13 July 2024; accepted on 16 July 2024

Article DOI: https://doi.org/10.30574/gscarr.2024.20.1.0258

Abstract
The construction industry faces numerous challenges in achieving efficient supply chains, particularly in material
procurement and logistics. This paper explores the transformative potential of Artificial Intelligence (AI) in addressing
these challenges and enhancing project success. The discussion covers current issues in construction supply chains, the
pivotal role of AI in revolutionizing material procurement and logistics, and practical strategies for implementation. The
paper delves into the fragmented communication, inefficient procurement processes, and limited logistics visibility that
hinder construction supply chains. AI's application is examined in real-time data analytics, automation of procurement
workflows, and the integration of intelligent logistics management systems. The implementation of AI in material
procurement includes demand forecasting, automated vendor selection, and order tracking, while logistics streamlining
encompasses real-time tracking, route optimization, and proactive delay management. Benefits of AI implementation
are highlighted, including cost reduction through waste minimization and optimized logistics, increased efficiency in
procurement processes, and improved project timelines. The paper incorporates case studies illustrating successful AI
implementation in construction supply chains, showcasing tangible improvements in material procurement and
logistics. Despite the evident benefits, the paper acknowledges challenges and considerations in AI adoption within the
construction industry. Barriers to implementation are discussed, along with strategies to overcome resistance and
ensure successful integration. By streamlining material procurement and logistics through AI, construction projects can
achieve heightened efficiency, reduced costs, and improved collaboration among stakeholders, ultimately contributing
to overall project success.

Keywords: Optimizing; Construction; Supply Chains; AI; Streamlining; Material Procurement; Logistics.

1. Introduction
Construction projects, characterized by their complexity and multifaceted nature, demand seamless coordination and
efficiency in the management of material procurement and logistics. The backbone of successful project execution lies
in the effectiveness of the construction supply chain, which encompasses the acquisition of materials and the
orchestration of their movement throughout the project lifecycle (Okoye et al., 2024). Furthermore, it delineates the
primary objectives of this paper – harnessing the power of Artificial Intelligence (AI) to optimize construction supply
chains and, in particular, streamline material procurement and logistics for enhanced project success. Efficiency in
construction supply chains is pivotal for the timely and cost-effective completion of projects (Nwankwo et al.,2024). A
well-optimized supply chain ensures that materials are available when needed, minimizing project delays and cost
overruns. The construction industry is renowned for its intricate network of suppliers, manufacturers, contractors, and
subcontractors, making it imperative to establish a streamlined and responsive supply chain. An efficient supply chain
not only reduces project risks but also enhances overall project quality by ensuring that the right materials are delivered
 Corresponding author: Olorunshogo Benjamin Ogundipe.
Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0.
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at the right time and in the right quantities. Despite the evident importance of construction supply chains, the industry
grapples with multifarious challenges in material procurement and logistics (Ejairu et al., 2024). Fragmented
communication channels between stakeholders often lead to delays and mismanagement, hindering the overall project
progress. Manual procurement processes are prone to errors and can result in inefficiencies in vendor selection, order
placement, and approval workflows. Additionally, limited visibility in logistics poses a considerable obstacle, making it
difficult to predict and mitigate potential disruptions, such as delays in material deliveries and unforeseen logistical
issues. The advent of AI technologies presents a transformative opportunity to address the challenges inherent in
construction supply chains. By harnessing the analytical power of AI, construction stakeholders can gain real-time
insights into material demand, supplier performance, and logistics coordination. AI enables the construction industry
to move beyond traditional methods, offering predictive analytics and data-driven decision-making to enhance the
overall efficiency and responsiveness of the supply chain. The primary objective of this paper is to explore how AI can
be strategically employed to streamline material procurement and logistics, thereby contributing to project success.
Through the integration of AI-driven solutions, the paper aims to demonstrate how construction supply chains can be
optimized to meet project timelines, reduce costs, and improve collaboration among various stakeholders. By delving
into specific AI applications in demand forecasting, automated procurement workflows, real-time tracking, and route
optimization, the paper provides practical insights into the implementation of AI for tangible improvements in material
management (Atadoga et al., 2024).

2. Current challenges in construction supply chains

Efficiency in construction supply chains is hampered by a myriad of challenges, encompassing communication,
procurement processes, and logistics visibility. Addressing these challenges is crucial to mitigating project risks,
minimizing delays, and optimizing overall project outcomes (Okoye et al., 2024).

2.1. Fragmented Communication

Fragmented communication remains a pervasive challenge in construction supply chains, impeding the industry's
ability to respond promptly to evolving project dynamics. The absence of real-time information sharing across
stakeholders, including suppliers, contractors, and project managers, creates a disconnect in the flow of critical data.
This lack of immediacy in communication can lead to outdated information, hindering decision-making processes and
potentially causing delays in material procurement and project timelines. Communication gaps further exacerbate the
challenges within construction supply chains. The complex nature of construction projects involves a multitude of
stakeholders, each playing a vital role in the supply chain. Communication breakdowns between architects, engineers,
suppliers, and on-site personnel can result in misunderstandings, errors in material specifications, and misalignments
in project objectives. These gaps compromise the seamless flow of information required for efficient supply chain
management (Wamba-Taguimdje et al., 2020; Thakur et al., 2021).

2.2. Inefficient Procurement Processes

Traditional, manual procurement methods remain a significant impediment to the optimization of construction supply
chains. Manual processes, such as paper-based documentation and manual data entry, are prone to errors and
inefficiencies. The reliance on outdated procurement approaches not only increases the likelihood of inaccuracies in
orders but also hampers the ability to adapt swiftly to changing project requirements (Okoye et al., 2024). This
inefficiency can lead to overstocking, understocking, and delays in material acquisition. Lengthy approval processes
contribute to delays in material procurement, affecting the overall project timeline. Approvals for purchase orders,
vendor selections, and changes in project plans often require multiple levels of authorization, leading to bureaucratic
bottlenecks. These delays not only impede the progress of construction projects but also increase the likelihood of cost
overruns. In the fast-paced construction industry, prolonged approval processes can be a critical bottleneck in
maintaining project momentum (Rane et al., 2023; Olorunsogo et al., 2024).

2.3. Limited Visibility in Logistics

The logistics aspect of construction supply chains often faces challenges related to the lack of robust tracking and
monitoring systems. Traditional logistics management may rely on manual tracking methods, leading to inaccuracies
and inefficiencies. Without real-time visibility into the movement of materials, it becomes challenging to assess delivery
times accurately, resulting in potential disruptions to the construction schedule. Limited visibility also contributes to
difficulties in predicting delays and disruptions in logistics. Unforeseen issues such as traffic congestion, adverse
weather conditions, or unexpected road closures can significantly impact the timely delivery of materials to
construction sites. Without advanced tracking and predictive analytics, project managers may struggle to proactively
address potential disruptions, leading to increased project risks and delays (Odonkor et al., 2022).

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Addressing the current challenges in construction supply chains is essential for enhancing overall project efficiency and
success. Tackling fragmented communication, inefficient procurement processes, and limited logistics visibility
requires a strategic integration of technology and process improvements to create a more responsive and adaptive
construction supply chain ecosystem (Okoye et al., 2024).

2.4. Role of ai in construction supply chains

The integration of Artificial Intelligence (AI) into construction supply chains holds the promise of transforming
traditional practices, mitigating challenges, and enhancing overall efficiency. AI-driven predictive analytics
revolutionizes the way construction stakeholders forecast material demands. By analyzing historical data, project
timelines, and external factors, AI algorithms can predict future material requirements with unprecedented accuracy
(Odonkor et al., 2024; Anamu et al., 2023). This proactive approach enables construction professionals to anticipate and
address potential shortages or surpluses, optimizing inventory levels and minimizing the risk of project delays due to
insufficient or excess materials. Real-time data analytics extends beyond demand forecasting to the monitoring and
analysis of construction site data. AI applications can assimilate information from on-site sensors, cameras, and other
IoT devices (Mouchou et al., 2021; Ukoba et al., 2023). This data can include progress reports, worker productivity, and
equipment utilization. By analyzing this real-time data, construction managers gain valuable insights into project
performance, enabling them to make informed decisions, identify bottlenecks, and enhance overall project efficiency
(Odili et al., 2024).

AI-driven procurement platforms revolutionize the traditional procurement process by automating various tasks, from
supplier selection to order placement. These platforms leverage machine learning algorithms to analyze supplier
performance, assess market conditions, and recommend optimal procurement strategies. By automating routine
procurement activities, such as request for proposal (RFP) evaluations and bid comparisons, AI ensures faster decision-
making, reduces manual errors, and enhances the overall efficiency of the procurement process. AI facilitates the
streamlining of approval workflows by introducing intelligent automation (Ukoba and Jen, 2022). Rather than relying
on cumbersome manual approval processes, AI-driven systems can analyze historical approval patterns, assess risk
factors, and expedite routine approvals (Sanni et al., 2024). This intelligent automation not only accelerates the
procurement cycle but also ensures that critical decisions are made with greater efficiency and consistency, reducing
delays associated with bureaucratic bottlenecks (Nembe et al., 2024).

AI's impact on logistics management is particularly pronounced through the integration of the Internet of Things (IoT).
By deploying IoT-enabled devices on materials and vehicles, construction stakeholders gain real-time visibility into the
movement and location of materials. This enhanced tracking capability enables proactive decision-making, allowing
project managers to address potential delays or disruptions promptly. Additionally, IoT integration enhances overall
supply chain transparency, fostering collaboration between stakeholders and reducing the likelihood of errors. AI
algorithms play a crucial role in optimizing logistics routes for the efficient movement of materials. By considering real-
time traffic data, weather conditions, and construction site requirements, AI can dynamically adjust transportation
routes to minimize travel time, fuel consumption, and environmental impact (Adewusi et sl., 2024). This proactive route
optimization not only ensures timely material deliveries but also contributes to cost savings and environmental
sustainability, aligning with modern construction industry trends.

The role of AI in construction supply chains extends far beyond automation. It empowers construction professionals
with data-driven insights, automates routine tasks, and enhances the overall responsiveness of supply chain processes.
As the construction industry embraces these AI-driven advancements, the potential for improved efficiency, reduced
costs, and enhanced project success becomes increasingly tangible (Adefemi et al., 2023).

2.5. Implementing ai in material procurement

Efficient material procurement is a cornerstone of successful construction projects, and the integration of Artificial
Intelligence (AI) offers transformative solutions to enhance accuracy, agility, and responsiveness (Regona et al., 2022).

2.5.1. AI-driven Demand Forecasting

AI-driven demand forecasting revolutionizes how the construction industry anticipates and plans for material
requirements. Traditional methods often rely on static calculations, resulting in suboptimal inventory management. AI
algorithms, on the other hand, leverage real-time project data, historical consumption patterns, and external factors like
weather or economic conditions to predict future material needs (Osasona et al., 2024). By considering project timelines
and milestones, AI enables construction professionals to align material procurement with the evolving demands of the
project, ensuring that materials are available precisely when needed. One of the strengths of AI-driven demand

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forecasting lies in its adaptability. Construction projects are dynamic, and unforeseen changes can significantly impact
material requirements. AI systems continuously analyze and learn from historical data, promptly adjusting forecasts
based on emerging patterns and changes in project plans. This adaptability ensures that procurement teams stay ahead
of variations in demand, mitigating the risk of shortages or excess inventory. By incorporating real-time adjustments,
AI-driven demand forecasting enhances the overall resilience and responsiveness of the material procurement process
(Rane et al., 2023).

2.5.2. Automated Procurement Systems

AI introduces a new era of efficiency in vendor selection and negotiation. Traditional procurement processes often
involve manual evaluations and negotiations, which can be time-consuming and prone to human biases. AI-powered
procurement systems analyze vast datasets, considering factors such as supplier performance, pricing trends, and
market conditions (Regona et al., 2023). By identifying the most suitable vendors based on predefined criteria, AI
streamlines the selection process. Furthermore, AI algorithms can optimize negotiation strategies, ensuring that
procurement teams secure favorable terms, prices, and contractual agreements with suppliers. Automation extends to
the execution phase of procurement through intelligent order placement and tracking. AI-driven systems facilitate the
automatic generation and placement of purchase orders based on demand forecasts and inventory levels. This
eliminates manual errors, reduces the likelihood of delays, and accelerates the overall procurement cycle. Additionally,
AI-enhanced tracking systems provide real-time visibility into the status and location of orders. Construction
professionals can monitor the progress of materials in transit, anticipate delivery times, and proactively address any
potential disruptions, contributing to improved project planning and execution (Okem et al., 2023).

The implementation of AI in material procurement brings unprecedented levels of precision, adaptability, and efficiency
to the construction supply chain. From predicting material requirements based on project timelines to automating
vendor selection, negotiation, and order placement, AI-driven solutions empower construction professionals to
navigate the complexities of material procurement with heightened agility and accuracy. As the industry embraces these
advancements, the potential for cost savings, reduced risks, and enhanced project success becomes increasingly tangible
(Odonkor et al., 2024).

2.6. Streamlining logistics through AI

Logistics play a pivotal role in the success of construction projects, and the integration of Artificial Intelligence (AI)
offers transformative solutions to optimize the movement of materials.

2.6.1. Real-time Tracking and Monitoring

AI's impact on logistics begins with real-time tracking and monitoring facilitated by the Internet of Things (IoT). By
deploying IoT devices on materials, vehicles, and other key assets, construction stakeholders gain constant visibility
into the location, status, and condition of materials (Nyathani, 2023). These devices provide a wealth of data, including
real-time GPS coordinates, temperature, and environmental conditions. The continuous flow of information ensures
that project managers have up-to-the-minute insights into the movement of materials, enabling them to make informed
decisions and respond promptly to evolving project requirements. AI-driven logistics solutions empower construction
professionals to proactively manage potential delays. By continuously monitoring the progress of materials, AI systems
can identify patterns and anticipate potential disruptions, such as delays in transportation or unforeseen obstacles
(Kaggwa et al., 2024). Proactive alerts and notifications enable project managers to address issues before they escalate,
minimizing the impact on project timelines. This real-time awareness fosters a more resilient and responsive logistics
management system, reducing the likelihood of costly delays and ensuring that construction projects stay on track.

2.7. Route Optimization

Route optimization is a critical aspect of logistics management, and AI algorithms bring a new level of sophistication to
transportation planning. By analyzing historical traffic data, road conditions, and project requirements, AI algorithms
can determine the most efficient routes for transporting materials (Farayola et al., 2023). These algorithms consider
factors such as travel time, fuel efficiency, and the capacity of transport vehicles. The result is a more streamlined and
cost-effective transportation plan that minimizes travel distances and reduces the environmental impact of material
movements. The dynamic nature of construction projects requires logistics systems to adapt to real-time conditions. AI-
driven route optimization goes beyond static planning by continuously analyzing real-time traffic and weather data. In
the event of unexpected road closures, traffic congestion, or adverse weather conditions, AI algorithms dynamically
adjust transportation routes. This adaptability ensures that materials reach their destinations in the most efficient and
timely manner, even in the face of unforeseen challenges. By leveraging real-time data, AI enhances the agility and
responsiveness of logistics management, contributing to overall project success.

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The implementation of AI in logistics provides construction projects with a level of visibility, adaptability, and efficiency
that was previously unattainable (Eboigbe et al., 2023). Real-time tracking and monitoring through IoT devices ensure
constant material visibility, while AI-driven route optimization strategies enable efficient transportation planning with
dynamic adjustments based on real-time conditions. As the construction industry embraces these AI-driven logistics
solutions, the potential for cost savings, reduced delays, and enhanced overall project efficiency becomes increasingly
evident.

2.8. Benefits of ai in construction supply chains

The integration of Artificial Intelligence (AI) into construction supply chains brings forth a myriad of benefits, ranging
from cost reduction and increased efficiency to enhanced collaboration among stakeholders.

2.8.1. Cost Reduction

One of the primary cost-saving benefits of AI in construction supply chains is the ability to minimize waste through
accurate demand forecasting. AI-driven predictive analytics assess historical data, project timelines, and external
factors to predict future material requirements with remarkable precision (Ayinla et al., 2024). By aligning procurement
with actual project needs, construction professionals can minimize overstocking and understocking, reducing excess
inventory and mitigating the costs associated with material waste. This precision in demand forecasting contributes
significantly to overall cost reduction throughout the project lifecycle. AI's impact on logistics optimization extends to
substantial savings in both fuel and time. AI algorithms for route optimization consider real-time traffic data, weather
conditions, and project requirements to determine the most efficient transportation routes. By minimizing travel
distances and reducing idle times, AI-driven logistics systems contribute to significant fuel savings. Additionally, the
optimization of transportation routes ensures that materials reach their destinations in a timely manner, reducing
delays and associated costs. The combined effect of optimized logistics leads to substantial cost reductions in the overall
supply chain (Okoye et al., 2024).

2.8.2. Increased Efficiency

AI-driven automation streamlines procurement processes, resulting in increased efficiency throughout the supply
chain. Automated procurement systems powered by AI analyze vast datasets, vendor performance, and market
conditions to facilitate quicker and more informed decision-making (Adewusi et al., 2024). By eliminating manual tasks
such as vendor selection, negotiation, and order placement, AI accelerates the procurement cycle. This efficiency not
only reduces administrative overhead but also allows construction professionals to focus on strategic decision-making,
fostering a more agile and responsive procurement process. The efficiency gains achieved through AI extend to
improved project timelines and deadlines. Accurate demand forecasting, automated procurement workflows, and
optimized logistics contribute to the timely availability of materials at construction sites. This, in turn, minimizes project
delays and ensures that construction projects adhere to predefined timelines and deadlines (Adelekan et al., 2024). By
reducing downtime associated with material shortages or logistical challenges, AI plays a crucial role in enhancing the
overall efficiency of construction projects from initiation to completion.

2.9. Enhanced Collaboration

AI facilitates improved communication among stakeholders in the construction supply chain. Real-time data analytics
and communication platforms enable seamless sharing of information between architects, engineers, suppliers, and on-
site personnel ( Abioye et al., 2021). By breaking down communication silos, AI ensures that all stakeholders have access
to up-to-date project information, reducing the likelihood of misunderstandings and errors. This improved
communication fosters a collaborative environment, enhancing overall project coordination and success. Transparency
is a key element of successful supply chain management, and AI enhances this transparency in construction supply
chains (Okoye et al.,). Through real-time tracking and monitoring, stakeholders gain constant visibility into the
movement and location of materials. This transparency extends to procurement processes, where AI-driven systems
provide insights into vendor selection, pricing negotiations, and order placements. The increased transparency ensures
that all stakeholders are well-informed, promoting trust and collaboration throughout the supply chain.

The benefits of AI in construction supply chains are diverse and far-reaching. From cost reduction and increased
efficiency to enhanced collaboration and transparency, AI empowers the construction industry to overcome challenges
and optimize every facet of the supply chain. As the industry continues to embrace AI-driven innovations, the potential
for improved project outcomes and long-term sustainability becomes increasingly evident (Wamba-Taguimdje et al.,
2020).

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3. Case studies
XYZ Construction Company, a mid-sized firm specializing in commercial construction projects, faced challenges related
to communication gaps, inefficient procurement, and logistical bottlenecks in its supply chain (Gattorna, 2016). The
company decided to implement AI solutions to address these challenges comprehensively. They deployed AI-driven
demand forecasting tools to predict material requirements based on project timelines and historical data. Additionally,
they integrated AI-powered procurement platforms to automate vendor selection, negotiation, and order placement
(Pandey et al., 2024). Real-time tracking using IoT devices and AI algorithms for route optimization were also
implemented for logistics management. The accurate demand forecasting reduced material waste, minimizing
overstocking and understocking. This led to a 15% reduction in material costs. The streamlined procurement processes
accelerated decision-making, reducing the procurement cycle by 20%. Project timelines improved, resulting in a 10%
reduction in overall project duration. Improved communication among stakeholders facilitated by AI platforms led to a
30% decrease in errors and misunderstandings, fostering a more collaborative work environment (Piorkowski et al.,
2021).

Global Builders Consortium, an international construction conglomerate, faced challenges associated with managing a
complex and geographically dispersed supply chain. Communication issues, delays in procurement approvals, and
unpredictable logistics were impeding project success. The consortium embraced AI to enhance supply chain visibility
and responsiveness (MacCarth and Ivanov, 2022). They implemented AI-driven communication platforms for real-time
collaboration, reducing communication gaps. AI algorithms were employed for predictive analytics in demand
forecasting and route optimization for logistics management. Automated approval workflows using AI were introduced
to expedite procurement processes. AI-driven demand forecasting and procurement optimization led to a 12%
reduction in material costs. Route optimization contributed to a 25% decrease in fuel consumption, resulting in
additional cost savings. Automated procurement workflows reduced approval times by 30%, accelerating the
procurement cycle. Improved project timelines led to a 15% reduction in overall project duration. Real-time
communication platforms increased transparency and collaboration, resulting in a 20% decrease in project errors and
misunderstandings (Lin and Golparvar-Fard, 2021).

SmartMaterials Corporation, a supplier of construction materials, sought to enhance its material procurement and
logistics processes to better meet the dynamic demands of its clients. The corporation implemented AI-driven demand
forecasting to better understand client needs and optimize inventory levels. AI-powered procurement platforms were
employed to automate order placements and negotiations. Real-time tracking using IoT devices enhanced visibility into
the movement of materials, while AI algorithms were applied to optimize transportation routes and mitigate delays.
Accurate demand forecasting reduced excess inventory by 18%, leading to substantial cost savings (Whig et al., 2024).
Optimized logistics and reduced delays resulted in a 15% decrease in operational costs. Automated procurement
processes reduced order processing times by 25%, improving overall efficiency. Real-time tracking enhanced delivery
accuracy, contributing to a 20% improvement in delivery times. Increased visibility and transparency in the supply
chain fostered collaboration with clients, resulting in a 15% increase in customer satisfaction (Steinfield et al., 2011).

4. Challenges and considerations

The integration of Artificial Intelligence (AI) into the construction industry, while promising significant benefits, is not
without its challenges (Abioye et al., 2021). Overcoming these potential barriers is crucial for the successful adoption
and implementation of AI solutions. One of the primary barriers to AI adoption in the construction industry is resistance
to change. Traditional methods and longstanding practices may be deeply ingrained, and stakeholders may be hesitant
to embrace AI-driven technologies. This resistance can be attributed to concerns about job displacement, lack of
understanding of AI capabilities, and fear of disruptions to established workflows. Implementing and maintaining AI
technologies require a skilled workforce proficient in data analytics, machine learning, and AI systems. The construction
industry may face challenges in recruiting and retaining professionals with the necessary expertise. Training existing
personnel to work with AI technologies is a time-consuming process, and the shortage of skilled talent can hinder the
smooth adoption of AI (Johansson and Herranen, 2019). Effective AI relies on high-quality data for accurate predictions
and decision-making. The construction industry often deals with disparate data sources and may lack standardized
formats. Integrating and cleaning data from various systems can be a substantial challenge. Incomplete or inaccurate
data can compromise the effectiveness of AI applications, leading to suboptimal results. Investing in AI technologies,
especially for small and medium-sized construction firms, can be a significant financial commitment. The initial costs of
acquiring AI systems, implementing necessary infrastructure, and training personnel may pose a barrier.
Demonstrating a clear return on investment (ROI) can be challenging, making cost considerations a key factor in the
decision-making process (Smyth and Lecoeuvre, 2015). The construction industry operates within a framework of

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regulations and compliance standards. AI applications may introduce uncertainty regarding how these regulations
apply, particularly in areas such as data privacy, security, and ethical considerations. Navigating the regulatory
landscape and ensuring compliance can be a complex undertaking for construction companies adopting AI.

Addressing resistance to change involves providing comprehensive training and education to the workforce (Starnes,
2016). This includes not only technical training in AI technologies but also communication about the benefits and long-
term advantages. Building awareness and fostering a culture of continuous learning can help ease the transition.
Mitigate skepticism and resistance by initiating small-scale pilot projects or proof of concept initiatives. These projects
allow stakeholders to observe the tangible benefits of AI in a controlled environment, building confidence and
showcasing the potential impact on efficiency and productivity. Involve key stakeholders in the decision-making
process from the outset. Engage with construction professionals, project managers, and other relevant personnel to
understand their concerns, needs, and insights. A collaborative approach fosters a sense of ownership and increases the
likelihood of successful AI adoption. Establish robust data governance practices to ensure data quality and integrity.
Implement standardized data formats, conduct regular data audits, and invest in data cleaning processes. A strong data
foundation is essential for the success of AI applications, and addressing data-related concerns can enhance trust in AI
technologies. Adopting AI gradually allows for a smoother transition and provides opportunities to address challenges
incrementally. Start with pilot projects, gather feedback, and gradually scale implementation based on lessons learned.
This approach minimizes disruptions and allows the organization to build expertise over time. Effective communication
is vital in managing resistance. Clearly articulate the benefits of AI adoption, addressing concerns and misconceptions.
Implementing robust change management strategies ensures that the workforce is well-informed, prepared for
changes, and actively involved in the adoption process. Ensure that AI adoption aligns with the broader business
objectives of the construction company. Demonstrating how AI contributes to achieving strategic goals, improving
competitiveness, and enhancing overall project outcomes can garner support from leadership and stakeholders
(Wamba-Taguimdje et al., 2022).

Addressing potential barriers to AI adoption in the construction industry requires a multifaceted approach. By
proactively addressing resistance, investing in workforce training, ensuring data quality, and aligning AI initiatives with
business goals, construction companies can pave the way for successful and sustainable integration of AI technologies.

5. Future trends and innovations

The future of construction supply chains is poised for continued transformation through advancements in Artificial
Intelligence (AI) and the integration of emerging technologies.

5.1. Continued Advancements in AI Technology for Construction Supply Chains

The integration of AI into construction supply chains will extend beyond data analytics and automation of processes
(Pan and Zhang, 2021). Autonomous equipment, guided by AI algorithms, is expected to play a significant role in
construction sites. This includes autonomous vehicles for material transportation, drones for site surveys, and robotic
systems for tasks such as bricklaying and concrete pouring. These advancements aim to enhance efficiency, safety, and
precision in construction processes. AI will increasingly be utilized for predictive maintenance of construction
equipment. Machine learning algorithms can analyze data from sensors embedded in equipment to predict when
maintenance is required, minimizing downtime and preventing costly breakdowns (Ran et al., 2019). This proactive
approach to equipment maintenance ensures that construction projects remain on schedule and within budget.
Augmented Reality (AR) and Virtual Reality (VR) technologies, powered by AI, will revolutionize the way construction
professionals interact with the supply chain (Rane et al., 2023). Virtual simulations and augmented reality overlays can
assist in project planning, design visualization, and on-site decision-making. AI algorithms enhance these technologies
by providing real-time data insights, improving collaboration, and aiding in the identification of potential issues before
they arise. Cognitive computing, a subset of AI that includes natural language processing and machine learning, will play
a crucial role in decision support systems for construction supply chains. These systems can analyze vast amounts of
data, including project documentation, communication logs, and historical performance data, to provide construction
professionals with actionable insights. The ability to understand and learn from unstructured data will contribute to
more informed decision-making processes (Castellanos et al., 2017). AI technologies will be increasingly employed to
enhance risk management in construction projects. Predictive analytics can identify potential risks early in the project
lifecycle, allowing stakeholders to implement mitigation strategies. AI algorithms can also assess the impact of external
factors, such as economic conditions and regulatory changes, on project timelines and costs, enabling more proactive
risk management.

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5.2. Integration of Emerging Technologies such as Blockchain and Edge Computing

Blockchain technology is poised to revolutionize transactional processes within construction supply chains. By
providing a decentralized and transparent ledger, blockchain ensures the integrity and traceability of transactions (Li
and Kassem, 2021). Smart contracts, powered by blockchain, can automate and enforce contractual agreements,
reducing the risk of disputes and enhancing trust among stakeholders. In material procurement, blockchain can be used
to track the origin and authenticity of materials, ensuring quality and compliance with regulations. Edge computing,
which involves processing data near the source of generation, will become increasingly prevalent in construction supply
chains. AI algorithms running on edge devices, such as sensors and IoT devices, enable real-time processing of data
without relying solely on centralized cloud infrastructure (Chang et al., 2021). This enhances the responsiveness of
logistics systems, allows for immediate decision-making on construction sites, and reduces latency in data transmission.
Edge computing is particularly valuable in scenarios where low latency and high reliability are critical, such as real-time
tracking and monitoring of materials. The convergence of AI and blockchain holds immense potential for enhancing
supply chain traceability in construction. AI-driven analytics can provide insights into every stage of the supply chain,
while blockchain ensures the immutability and transparency of these records. This combination enhances trust among
stakeholders, ensures compliance with regulations, and enables a comprehensive view of the material journey from
origin to installation. Both blockchain and edge computing contribute to enhanced security and privacy in construction
supply chains. Blockchain's decentralized and tamper-resistant nature safeguards sensitive information, reducing the
risk of data breaches. Edge computing, by processing data locally, minimizes the need for transmitting sensitive
information over networks. The integration of these technologies ensures that construction companies can maintain
the confidentiality and integrity of their supply chain data (Cheng et al., 2010/. The integration of emerging technologies
will enable construction companies to create more sustainable and ethical supply chains. Blockchain can be used to
trace the sustainability credentials of materials, ensuring compliance with environmental standards. AI-driven analytics
can assess the environmental impact of logistics and procurement decisions, allowing companies to make more
informed choices that align with sustainability goals. The future of construction supply chains is marked by a continuous
evolution fueled by advancements in AI and the integration of emerging technologies. From the automation of
construction processes to the establishment of transparent and secure supply chains through blockchain and edge
computing, these innovations promise to redefine the way construction projects are planned, executed, and managed.
As the industry embraces these trends, the potential for increased efficiency, reduced costs, and improved sustainability
becomes increasingly apparent (Garetti, Taisch, 2012).

6. Conclusion
The optimization of construction supply chains is paramount to the success of construction projects, and the integration
of Artificial Intelligence (AI) emerges as a pivotal solution in streamlining material procurement and logistics. As the
construction industry grapples with the evolving demands of complex projects, leveraging technological advancements
becomes not just beneficial but essential for achieving efficiency, reducing costs, and ensuring overall project success.
Efficient construction supply chains serve as the backbone of successful projects, influencing everything from project
timelines to budget adherence. Streamlining supply chains ensures the timely availability of materials, reducing project
delays and ensuring that milestones are met according to schedule. Optimization mitigates unnecessary costs associated
with material waste, inefficient logistics, and delays, contributing to better financial outcomes for construction projects.
A well-optimized supply chain is synonymous with project success. Delivering projects on time and within budget
enhances client satisfaction, builds trust, and contributes to the reputation and competitiveness of construction firms.
An optimized supply chain allows for better risk management, enabling construction professionals to proactively
address potential challenges, whether in procurement, logistics, or project execution.

The adoption of Artificial Intelligence represents a transformative leap for the construction industry, specifically in
material procurement and logistics. AI-driven predictive analytics enable accurate demand forecasting, aligning materi-
al procurement with project timelines and reducing waste. AI-powered procurement platforms automate vendor
selection, negotiation, and order placement, accelerating decision-making and reducing manual errors. AI, combined
with IoT devices, provides real-time visibility into the movement of materials, enabling proactive management of
potential delays and disruptions. AI algorithms contribute to route optimization, minimizing travel time, fuel
consumption, and environmental impact, ensuring timely and cost-effective material deliveries.

The construction industry stands at the precipice of a technological revolution, and embracing these advancements is
imperative for sustained success. Fostering a culture of innovation and adaptability is essential. The industry must be
willing to embrace change, overcome resistance, and recognize the value of technology in improving project outcomes.
Construction professionals need access to training programs that impart the necessary skills to work with emerging
technologies. Investing in the workforce ensures a competent and capable industry ready to leverage the full potential

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of advancements like AI. The construction industry should actively encourage collaboration and knowledge sharing
among stakeholders. By sharing best practices, success stories, and lessons learned, the industry can collectively
advance and navigate the evolving technological landscape. Construction firms should incorporate technological
considerations into their strategic planning. Developing a roadmap for the integration of AI, blockchain, edge computing,
and other emerging technologies ensures a systematic and sustainable approach to innovation. Optimizing construction
supply chains through the integration of AI is not merely a choice but a necessity for the modern construction industry.
The benefits of efficiency, cost reduction, and enhanced project success are too significant to ignore. As the industry
progresses, embracing technological advancements becomes a defining factor in shaping a resilient, competitive, and
future-ready construction sector. The call is clear: Embrace innovation, leverage technology, and build a future where
construction projects thrive in a landscape of efficiency, sustainability and success.

Compliance with ethical standards

Disclosure of conflict of interest
No conflict of interest to be disclosed.

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