Current Era and Practice of Supply Chain Management in the Construction Industry

Abstract

The idea of implementing supply chain management (SCM) principles for the construction industry was embraced by construction stakeholders to enhance the sector's performance. The analysis from the literature revealed that the implementation of SCM in the construction industry enhances the industry's value in terms of cost-saving, time savings, material management, risk management and others. The construction supply chain (CSC) can be managed using the pull or push system. This chapter also discusses the origin and proliferation of SCM into the construction industry. The chapter revealed that the concept of SCM has passed through five different eras: the creation era, the use of ERP, globalisation stage, specialisation stage and electronic stage. The findings from the literature revealed that we are presently in the fourth industrial revolution (4IR) era. At this stage, the SCM witnesses the adoption of technologies and principles driven by the 4IR. This chapter also revealed that the practice of SCM in the construction industry is centred around integration, collaboration, communication and the structure of the supply chain (SC). The forms and challenges hindering the adoption of these practices were also discussed extensively in this chapter.

Citation

Osunsanmi, T.O., Aigbavboa, C.O., Thwala, W.D. and Oke, A.E. (2022), "Current Era and Practice of Supply Chain Management in the Construction Industry", Construction Supply Chain Management in the Fourth Industrial Revolution Era, Emerald Publishing Limited, Leeds, pp. 19-76. https://doi.org/10.1108/978-1-80382-159-720221002