Here you can find frequently asked questions about the standardization of product information in the supply chain.
What does the standardization of product information in the construction industry mean?
+Improving the information flows of construction and property management starts with standardized product information. The standardization of product information requires the identification of products, i.e. the determination of a unique identifier for each product of different manufacturers, so that the information can be processed mechanically.
A unique identifier can be changed, for example, into a bar-coded identifier for machine reading in accordance with a common standard.
The construction product and building technology industry has already come a long way: production is process-based, digitized and global. That's why many product groups are already using the number of machines and automation in supply chains from the factory to wholesalers, stores and delivery trucks. However, these digital chains are currently broken at the gates of construction sites.
How has standardization of product information been utilized in the construction industry so far?
+In construction and its planning, automatic data processing is used very little compared to other industries and the rest of society.
Currently, information related to the construction process is mainly collected and transmitted manually, and this is often limited to individual companies and projects.
In many companies, the situation is that data is collected from separate software and in design files. Documents are compiled e.g. to Excel and Word. Completed documents are sent between different operators by e-mail or through document management.
The first step towards automatic data processing is data standardization across organizational boundaries.
Why should product information be digitized and standardized in the construction industry?
+The common standard in the construction industry enables the use of systems already in use in other industries and, for example, barcode readers on the construction site, and guarantees manufacturer independence. With the help of tags and codes, we can attach information to products and transports, which can be shared with other operators in the network in real time.
In the same way, we can use the application to search for additional information at different stages of the supply chain automatically, which makes delivery and installation smoother. Standardized product information is a prerequisite so that we can standardize the corresponding design information.
Construction sites should be integrated into digital supply chains so that we can ensure the benefits of automatic data processing for builders, building users and administrators.
For example, even smaller factories use material flow control and a real-time logistics situation picture. In the factories, the incoming material and the supply chain management of the outgoing products are connected to the information systems.
Construction sites should have access to similar information regarding deliveries and hauling, as well as information about the installation readiness of the material at the workplace. In this way, we finally get information about what, when and where was installed, i.e. the real-time degree of completion of the building and the parts list of the finished building.
The standardization and digitization of product information is the first step towards industrial construction and production efficiency, which help the construction industry achieve national climate goals.
What is the role of supply chains in construction?
+The construction process usually consists of project development, design and construction, and the importance of supply chains is often hidden.
Research and the introduction of paced production have made the problems of construction site logistics visible, and the industry has begun to discuss the T-model of the construction process, which connects supply chains as part of the design and construction process. Each construction-related task is fed by one or more supply chains whose node and end point is the construction site.
Supply chains are highly digitized and mostly very efficient processes. However, the chains break at the gate of the construction site, and we have no way to automatically collect information about the material flow. We therefore do not have the opportunity to monitor the operation of the supply chains in relation to the progress of the construction sites, and we do not receive information about problems or inefficiencies.
Business models and our way of procuring materials together with work from subcontractors has prevented the industry from investing in the development of supply chain operating methods and especially information transfer.
This leads to the fact that there are as many logistic operating models on the construction site as there are contractors. Chaining of contracts does not make it easier to manage material flows or understand the importance of supply chains, as this further increases the amount of communication required.

What kind of challenges can digital product information solve in the construction industry?
+A common standard enables the use of systems already in use in other industries in the construction industry and guarantees manufacturer independence. With the help of tags and codes, we can attach information to products and transports, which can be shared with other operators in the network in real time.
In the same way, we can search for the additional information we need at different stages of the supply chain automatically, which makes delivery and installation smoother. Standardized product information is a prerequisite so that we can standardize the corresponding design information.
However, the code that identifies the product alone is not enough to solve the problems related to the product approval of construction projects or make logistics run smoothly on its own. The identification of products efficiently from the factory to the construction site to the installation site, as well as the communication of information to maintenance and the building's user, must also be resolved.
What if the digitization of product information in the supply chain is not done?
+A large individual company may have the opportunity to standardize its own supply chains, but in practice in the construction industry this would mean standardizing a huge network of wholesale suppliers, prefabrication, material manufacturing and subcontractors. This work takes a lot of time and money, and the end result should not be a very big change to the current way of working.
Without the standardization and digitization of product information, the industry cannot adopt the latest information technology tools (such as machine learning or artificial intelligence), and thus the industry cannot take the next step towards industrial construction and productivity enhancement.
How is the standardization of product information related to the calculation of the carbon footprint?
+The identification of products is the first step in planning and calculating the carbon footprint, which uses actual data. Carbon footprint calculation is a similar calculation to data model-based cost calculation, and in the future carbon footprint calculation will become a mandatory part of a construction project.
The design of buildings and infrastructure is iterative and information-intensive in nature, and carbon footprint calculation follows a similar process to cost calculation and can be automated using the same methods.
Individualization of products enables the automation of data processing and we can already see market players offering carbon footprint information in a standardized and structured format.
The information can be connected directly to the contractors' calculation software via standardized interfaces.
The connection enables calculation algorithms to be created in the software, with which the carbon footprint information can be retrieved and calculated automatically with the help of the software.
What kinds of databases are used?
+Product customization is a solution for creating a parts list using automation, as well as for verifying product suitability and communicating this information efficiently during the building's life cycle.
ETIM standard
ETIM (Technical Information Model) is a model that expresses the product's technical information in a uniform way, regardless of language. The products are divided into ETIM classes, which still have ETIM properties and ETIM values. For each ETIM category (corresponding to the product name), the properties that are essential for that product category are defined. ETIM enables a product search with certain technical characteristics and a comparison with products that meet the same characteristics.
ETIM Finland is responsible for the development of the ETIM standard in Finland.
Read more about the ETIM standard
GTIN code
The GTIN code (Global Trade Item Number) is a widely, globally and industry-independent product identification standard. It is designed and developed for supply chains and is widely used in global manufacturing and goods flow management. In practice, all construction supplies for consumer goods delivered as warehouse goods are already identified with GTIN codes in Finland.
The GTIN is administered by GS1, a non-profit organization that develops standards system standards with various industries.
In the construction industry, the ETIM standard and GTIN code are used by three national product databases:
What is the PEPPOL standard and how does it relate to the construction industry?
+The State Office's goal is to improve the competitiveness of the Finnish export industry by digitizing the message traffic of the order and supply chain. In practice, this happens by standardizing the information to be transmitted using the PEPPOL standard.
The EU is putting the PEPPOL network into practice in the Real-Time Economy (RTE) project. The use of PEPPOL has expanded rapidly in recent years based on the EU e-invoicing directive and the implementation of the directive with the help of the CEN standard. With the expansion of use, it has become one of the most viable solutions as a method of transmitting electronic messages for trading between organizations.
The construction industry benefits from standardization, because the management of supply chains is currently almost completely manual, the information is not structured and the transfer of information is not digitized, although documents are generally digitized.
The State Treasury will introduce the PEPPOL standard in public procurement by 2024.
Read more about PEPPOL on the website of the State Treasury.