the Impact of Construction Supply Chain Management on Value on Projects

Abstract

Much research work has assessed the construction process and discovered that the process is ineffective and besieged with problems. Analysis of these problems has shown that a major part of them are related to the state and workings of the supply chains. Prior research justifies that waste and problems in construction supply chains are extensively present and persistent. This anomaly may be ascribed to the nature of the industry. Horizontal integration that is common place in the construction industry tends to fragment the supply chain, resulting in an unstable production environment occasioned by high unpredictability, much rework, low profits and eventual low level of value creation in the process. Therefore, an increased level of integration of interfaces and processes has been canvassed. The purpose of supply chain management is to achieve the expected increased level of integration of the whole supply chain. Supply chain management is a concept that has flourished in the manufacturing industry through Just in Time production and logistics. Supply chain management represents an autonomous managerial tool, though still largely dominated by logistics. Supply chain management has long been advocated as a means of improving the performance of supply chains in construction. This research study reports on an investigation into the impact of supply chain management on value creation in the South African construction industry. The research discovered that collaborative working is already in the industry and contractors consider supply chain management important for project success. Here construction supply chains were approached from the relationship view point. All issues are encouraged to be viewed and resolved in the supply chain from the relationship perspective.