Construction Supply Chain Management in the Fourth Industrial Revolution Era

The construction industry's application of supply chain management (SCM) principles is confronted with numerous Gordian Knots ranging from late delivery, fragmentation and others. The challenges could be attributed to multiple factors. The most crucial amongst them are adopting management ideas rooted in the second and third industrial revolution without taking consideration of the present industrial revolution. Evidence from literature and practice revealed that we are presently in the fourth industrial revolution (4IR). This chapter calls for developing a model that supports construction supply chain management (CSCM) in tandem with the principles of 4IR. This chapter presents the idea behind the conception, development and benefit of this research book to construction stakeholders and academia. The various shortcomings in the existing model for CSCM were also discussed in this chapter extensively.

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.

The model and existing practice of the construction supply chain (CSC) in the United Kingdom (UK) and Australia was presented in this chapter. The policies and reports that support the practice of the CSC were examined in both countries. It was discovered from the review of literature that the UK has a more detailed report targeted at improving the CSC than Australia. However, both countries have a common factor affecting their CSC which originates from fragmentation experienced within their supply chain. Construction stakeholders in the UK and Australia believe that collaboration and integration are vital components for improving performance. The majority of the contractors in both countries embrace collaborative working for the sole purpose of risk sharing, access to innovation and response to market efficiency. However, most of the models developed for managing the CSC in the UK are built around building information modelling (BIM). Also, the reviewed studies show that supply chain management practice will be effective following the following principle: shared objectives, trust, reduction in a blame culture, joint working, enhanced communication and information-sharing. Finally, the UK has a more established framework and more CSC models compared to Australia.

The prevalent practice of construction supply chain (CSC) in developing countries with a focus on Africa was presented in this chapter. Two African countries (South Africa and Ghana) were selected due to the extensive literature on the CSC emanating from the countries. The impediment to the effective management of the CSC in the two African countries was also examined in this chapter. It was discovered that the vital inhibition to the performance of CSC in developing countries is the adoption of culture from developed countries without a proper model for ensuring its implementation in developing countries. Also, no model has incorporated the principles and technologies of the fourth industrial revolution (4IR) to manage the CSC. The failure to adopt the 4IR technologies like block chain, big data and the internet of things has prevented the proper application of CSC practices in developing countries. CSC practices like collaboration, integration, lean supply chain, information sharing, financial management and communication are the primary practice in developing countries. Finally, this chapter called for the development of a model for managing the CSC in developing countries in alignment with the principles of the 4IR.

The challenges confronting the Nigerian construction industry which led to the adoption of supply chain management (SCM) practice were evaluated in this chapter. It was discovered that the Nigerian construction industry is confronted with fragmentation and poor information management. The stakeholders within the Nigerian construction industry proposed the adoption of SCM to overcome the fragmentation and other shenanigans facing the industry. This chapter revealed that construction supply chain (CSC) practices within the Nigerian construction industry focus on waste elimination by adopting the lean concept. The focus on the lean concept could be attributed to the numerous research related to lean or the enormous waste emanating from the Nigerian construction industry. Regardless of the emphasis on lean, the Nigerian CSC is still confronted with fragmentation and heavy waste generation. Thus, this chapter proposed the adoption of principles and technologies driven by the fourth industrial revolution (4IR) is a paradigm shift for the management of CSC in the country. It was discovered in this chapter that Nigerian construction supply stakeholders had not embraced the technologies and principles of the 4IR. The failure to adopt the technologies driven by the 4IR is attributed to the absence of a CSC model that depicts the management of CSC in alignment with the 4IR. This chapter called for developing a SCM model for the Nigerian construction industry in tandem with the principles and technologies of the 4IR.

The opinion that the spiritual controls the physical gave rise to this chapter. The spiritual in this chapter was regarded as the philosophical and organisational theories controlling the practical aspect of construction supply chain management (CSCM). It was discovered that there is a significant omission in adopting theories to explain supply chain management's (SCM) adaptation and modelling in the construction industry. Therefore, this chapter reviews theories such as resource-based view theory (RBV), principal agency theory (PAT), resource dependency theory (RDT), transaction cost economics theory (TCE) and game theory. Each of the theories was analysed to uncover how they support the practice and variables for modelling the construction supply chain (CSC). The existing models of the CSC were also examined in this chapter. It was found that most models were developed drawing on the frameworks of the global supply chain forum (GSCF) and supply chain operations reference model (SCOR). Owing to the shortcoming of GSCF, this book adopted the framework and principles of SCOR for modelling the management of CSC in the era of the fourth industrial revolution (4IR). Also, most of the existing CSC models, such as the seamless CSCM model, maturity model and others, were developed using the SCOR framework.

This chapter aimed to uncover the gaps in the existing construction supply chain management (CSCM) models. Organisational culture and the fourth industrial revolution (4IR) components are the two gaps that were identified through reviewing existing CSCM models. The 4IR is driven by three components which are smart management, virtualisation and cyber-physical system. It was proposed in this chapter that the practice of CSCM should be in tandem with the components of 4IR. This chapter recommended that for the effective practice of the construction supply chain (CSC) in the 4IR era, construction stakeholders should adopt an innovative and collaborative organisational culture. The organisational culture adopted by a construction firm performs a crucial role in encouraging construction stakeholders in adopting 4IR components for CSCM. Each of the 4IR components is driven by technologies like autonomous robots, building information modelling (BIM), radio frequency identification (RFID), the internet of things (IoT) and others. Among all the technologies, it was discovered that RFID and BIM had gained prominence in most CSC literature. The chapter recommended that blockchain, digital twins and the cyber-physical system are the next trending technology for CSCM.

This chapter focused on presenting the result of the Delphi study from the questionnaire distributed to the experts. The Delphi technique was used for modelling the construction supply chain management (CSCM) practice in the fourth industrial revolution (4IR) era. The technique was also used to predict the supply chain management's (SCM) possible trends in the construction industry. A total of 15 experts were selected for this study based on their working experience. The Delphi study also validated the gaps (organisational culture and 4IR component) identified from the existing CSCM model. The findings from the Delphi study revealed that organisational culture has a significant impact on the practice of CSCM in the 4IR era. Regarding adopting the 4IR component for the CSCM in Nigeria, the Delphi study revealed that smart management and virtualisation are the most adopted. Unfortunately, the cyber-physical system, the heartbeat of the 4IR, is yet to be fully implemented for CSCM practice in the Nigerian construction industry.

This chapter presented the model for the effective practice of construction supply chain management (CSCM) in the fourth industrial revolution (4IR) era. The model was developed after discovering that the failure of adopting the 4IR component has hindered the synchronisation of construction supply chain (CSC) activities. While some stakeholders are willing to manage their CSC under the 4IR era, most have no clue how to go about it. Most stakeholders are familiar with an existing practice built around collaboration, integration, supply chain structure and trust. This chapter bridges the gap by introducing organisational culture and 4IR components for modelling the CSCM in the 4IR era. The model was backed and grounded with a robust theoretical framework. The theories include social identity theory, change theory and resource-based view theory. It was discovered that the organisational culture adopted by construction stakeholders determines their willingness to embrace the 4IR component for the management of CSC. The 4IR components were divided into smart management, virtualisation and cyber-physical systems. The chapter recommended that the practice of SCM in the Nigerian construction industry should be modelled around the six constructs that were used in developing the model for this study.