Supply chain management in the Malaysian construction industry

Abstract

The construction industry plays an important role in establishing the required infrastructure for socioeconomic development while being a major contributor to ward overall economic growth.As the national economy grows, the construction industry needs to satisfy the expansion and changes in construction demand.To meet the challenges of global competition,the Malaysian construction industry will have to respond to changes in demands.Since the performance of the industry has great implication to the national economy, the construction industry should be promoted to a greater echelon.Therefore, Supply Chain Management (SCM) is a great opportunity for the construction industry primarily to reduce costs and time, thus improving industrial productivity.However, there are obstacles that include poor levels of logistical competence, partly limited competition, strong project focus as well as the attitudes and traditions surrounding the issue.In congruent with SCM principles and practices, the construction industry should consider integrating SCM into its portfolio to boost efficiency and effectiveness throughout the construction value chain. This research looks into the practice of SCM in the Malaysian construction industry.The motives behind this study were to identify dimens ions involved in SCM practices among three categories of construction players, namely contractors, developers, and suppliers. Besides that, this study also went deep into acknowledging the level of intensity of each practice in order to gain a thorough understanding on the related issues.Based on the study, SCM in general, is reasonably considered a common practice in the Malaysian construction industry.It was also found that the level of SCM adoption is good among the construction players.Conclusively, this research has been successful in meeting its objectives.Despite having good adoption level of SCM practices, SCM understanding is still considerably low in certain aspects.This leaves heavy responsibilities on the construction-related government agencies to further enhance the understanding of the construction players regarding SCM practices