Assessment of Supply Chain Management in Public Building Construction Projects in Addis Ababa
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Date
2017-05
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Addis Ababa University
Abstract
A poor management on construction projects can lead to significant negative impacts with low productivity, cost and time overrun, conflicts and disputes resulting in claims and time consuming litigation. Previous studies pointed out that an efficient management of the construction logistics process can be a way to lift up the construction productivity. Proper management of supply chain would result in lowering costs, short delivery time, low inventory level and improve reliability which would improve the competitive position of organizations.
This research assesses the perception of the construction industry stakeholders on the need and importance of supply chain management on selected public building construction projects, identify and analyze the current practices and challenges in the supply chain management process.
The study subjects are currently active public projects in Addis Ababa which are being administered by the Ministry of Urban Development and Housing. The main tools used for the collection of data included questionnaires and desk study as they are used to identify the various efforts that have been made in the past and to examine the challenges of supply chain management. Frequency analysis and relative importance index (RII) are used to examine the results from the questionnaire and findings are presented in charts and tables.
The findings show that the construction industry stakeholders perceive that supply chain management collaboration has helped in the construction industry as it improves the quality assurance and increases profitability. The study also indicates that the potential factors that are important for supply chain collaboration are improved customer service, increased profitability and improved quality insurance. On the other hand, late and incorrect payments and inaccurate data and engineering drawings not fitting the use are indicated as the major challenges for a successful supply chain network. Furthermore, it was found that most of the stakeholders do not apply the integrated approach to supply chain management.
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Management on construction projects