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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Keywords
Supply Chain Management, Public Building, Building Construction Projects, Addis Ababa