Supply Chain Risk Assessment In The Construction Industry: The Case Of Adama Town By

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Addis Ababa University


The supply chain (SC) plays a key role in the construction industry.There are many risk factors that influence the progress of a supply chain, and it is problematic when the probabilities and impacts of these risk factors are not well defined. In order to reduce the impact of supply chain risk factors that may affect the progress of any construction project, it is important to predict their influence inadvance. The objective of this study is to analyze construction supply chain management risks and their management process: The Case of Adama construction companies based on identifying and analyzing the risks that are affecting the supply chain of construction industry and the mitigation strategies employed. The study employed descriptive research. Simple random and nonprobability sampling designs were employed based on the nature of the target population. Consequently, the study selected a sample of 30 individuals from a population of 280 and the data was analyzed using descriptive statistics. The study starts by identifying typical risk issues related to a construction supply chain and making a detailed study on the risk factors assessment and management associated with the supply chain of construction projects taking a case study of construction companies in Adama. The study offers stakeholders involved in a construction project with a better understanding of risks in the supply chain of the construction sector so that they can take timely corrective actions and offset the negative impact of risk which can be useful for supply chain planning and operation. The study identified that supply chain risks factors like price fluctuation of construction materials, financing issue, delay in production, tight project schedule, delay in material deliveries were identified as the major ones and the most common Supply chain risk management practicesintheconstructionindustrylikelongtermcollaborativerelationshippractices, increasing knowledge about risk and risk analysis practice, back up supplier arrangement practices, supply chain contingency planning practices discussed.



Supply chain risk, management process, progress of a supply chain