University of Salford Global Supply Chain Management: Construction Industry
Current Challenges Affecting Construction Industry’s Supply Chain
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2.2 Current Challenges Affecting Construction Industry’s Supply ChainAn effective supply chain in the construction industry should possess seamless coordination and collaboration, transparency and visibility, and resilient and adaptability to handle unexpected disruptions (Tennant and Fernie, 2014). This involves having contingency plans, alternate suppliers, and flexible scheduling to mitigate risks and minimize project delays. However, even before the COVID-19 pandemic and the Ukraine-Russia war, the construction industry's supply chain faced challenges that hindered its effectiveness. One primary reason is the fragmented nature of the industry (Riazi et al., 2020). Construction projects involve various parties, each with their own objectives, processes, and priorities (Mohd Nawi et al., 2014). The lack of collaboration, information sharing, and integration among these stakeholders have resulted in inefficiencies and suboptimal supply chain performance. Moreover, the construction industry traditionally has been slow in adopting technological advancements and digitalization (Riazi et al., 2020). Therefore, outdated practices, manual processes, and paper-based documentation hindered the flow of information and data across the supply chain. This lack of digitization limited visibility, hindered decision-making, and contributed to delays and cost overruns. According to Rahim, Mohd Nawi and Nifa (2016) most supply chain issues in the construction industries can be resolved by implementing the Integrated Project Delivery (IPD) approach. The IPD brings together all stakeholders early in the project lifecycle and promotes collaboration, shared risk, and mutual accountability. Kahvandi et al. (2019) add that IPD involves aligning project objectives, utilizing Building Information Modelling (BIM) for enhanced communication and coordination, and fostering a culture of trust and cooperation. BIM is a digital representation of the physical and functional characteristics of a building or infrastructure project (Azhar, Khalfan and Maqsood, 2012). For example, a construction project adopting the IPD model could involve regular meetings with architects, contractors, and suppliers to jointly plan and coordinate activities. BIM software can be utilized to visualize the project, enabling real-time collaboration, clash detection, and efficient decision-making. This integrated approach improves communication, reduces rework, and optimizes resource allocation, leading to cost savings and timely project completion. However, the construction industry has been slow in adopting Integrated Project Delivery (IPD) for several reasons. Firstly, the traditional nature of the industry, with its hierarchical structure and fragmented roles, has created resistance to change (Kent and Becerik-Gerber, 2010). The established practices and contractual arrangements have ingrained a mind-set that discourages collaboration and shared risk. Additionally, the lack of awareness and understanding of the benefits of IPD among industry participants has hindered its widespread adoption (Azhar, Kang and Ahmad, 2015). The authors add that the perceived complexity of implementing IPD, including the need for upfront investment in technology and training, has also been a barrier. Moreover, the risk-averse nature of the industry, coupled with the fear of liability and uncertainties associated with adopting a new project delivery approach, has contributed to the slow uptake of IPD (Kent and Becerik-Gerber, 2010). Nonetheless, as the industry recognizes the potential advantages of IPD, including improved project outcomes and enhanced collaboration, there is an increasing shift towards its adoption, albeit at a gradual pace. Download 215.55 Kb. Share with your friends:
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