Strategies for Effective Supplier-Buyer Relationships in Construction Supply Chains; A Case ISBN: 978-1-943295-20-3 Smrutiranjan Sahu S.G. Deshmukh IIT (cec212909@iitd.ac.in) (deshmukh@mech.iitd.ac.in) One of the prime contributors to project profit is construction equipment in the supply chain of the construction sector. Inadequate design/implementation of proven strategies may affect the supply chain. Here in, a case of a major infrastructure company in India is discussed. Strategies that enable effective collaboration and coordination between supplier and buyer were not available during the Covid times resulting in longer lead time with under/over utilization of inventory. This affected the bottom line and the reputation of the company. A novel framework based on Kraljic’s portfolio analysis is proposed for enhanced efficiency, resilience, and higher margins. Keywords: Construction, Supplier Strategy, Kraljic Matrix, AHP, Resilient 1. Introduction In the construction industry, the cost of construction equipment covers a major chunk of money of the overall project cost. These capital expenditures not only consist of the initial investment but also involve the spares that are used throughout its use during a project cycle. Unlike manufacturing where the relationship between the supplier and buyer is usually long-term, in the construction industry for buying construction equipment the relationship between the supplier and the buyer is usually at arms-length for initial investment. But for the consumables and the spares, the organization (Buyer) must have an appropriate strategy that would help in minimizing the effort, streamline the supply chain to make it resilient and robust post- Covid and prepare an organization responsibility matrix that will assign a role to every department in the organization. In the course of the project, an attempt has been made to study the resource management of construction equipment and its spares for a tunnelling construction project. This study also involves preparing an appropriate purchasing strategy for spares and consumables of different construction equipment of the case project based on portfolio analysis. 1.1 Resource Management Resource management is an important aspect of all construction projects. In Larsen & Toubro construction it is one of the most emphasized aspects as it involves both material management and manpower management. One of the major challenges faced now a day in the construction industry is high inventory without any proper strategy for material management of construction equipment. Resource management covers majorly 3 portfolios. • Material Management • Manpower Management • Machinery Management One of the important verticals of resource management is purchasing strategy for construction equipment and its spares. Though being a giant firm in the construction sector no standard purchasing strategy is applied for different types of materials. The rule of thumb method may work in normal situations but during the COVID-19 pandemic, its consequences were catastrophic as the supply chain was completely disrupted. It resulted in an inevitable overrun in both schedule and cost. Figure 1 Schematic of Procurement Process 1 2 3 4 5 6