Precast concrete element construction is a widely used solution in Finland for the construction of the frame of residential apartment buildings, and the framing phase of a precast residential apartment building is often assumed to be a straightforward and well- controlled process that has been developed over time to work well. However, when taking a closer look, errors occur on the construction site daily, and the element supply chains are fragmented. Fragmentation can be seen in precast concrete supply chains as the supply chains functional groups forming silos, which hinders the flow of the precast concrete frame process and makes it challenging to make developments. The master’s thesis aims to promote the functioning of the supply chain process by identifying the problems of the precast concrete supply chain and by finding possible development targets qualitatively and exploratorily through a literature review and a case study. The study opens the topic and increases the industry's awareness of the problems existing within the precast concrete supply chains. The research uses the perspective of Lean thinking and transaction costs to interpret the problems occurring in the supply chain. The study of the problems was supported by the value stream mapping of the supply chains, which described the functions of the supply chains, from the acquisition of the elements on to their installation on the site. The problems were collected in a fashion typical for qualitative research, where many different sources were used. The problem information was collected from interviews, a workshop, and preexisting data on installation malfunctions on the case site. The problems were discussed in a workshop setting, resulting in a root-cause classification. The resulting classifications were compared to the classification formed based on the literature review and interviews. As the main result of the study, the problems occurring in the supply chain were divided into the categories of communication, documentation and data transfer, insufficient proactive planning, human management, and human errors, deficiencies in the classification of errors and documentation of errors, problems in the production of process information, and unexpected problems. Based on research, the second most pressing problem in the supply chain in different reviews is the problems in the flow of information between the actors. In the empirical study, the most frequent problems regarding accidents were waiting, motion, communication, and documentation problems. To find solutions to these problems, the research proposes a few development actions, where standardization of the process, raising the level of integration and maturity, and improving the flow of information are essential. By applying these suggested improvements, the process flow of the residential building’s frame erection phase can be enhanced.