ASEA SEC 02


SUPPLY CHAIN INTEGRATION BARRIERS IN CONSTRUCTION: VIEWS FROM TWO SOUTH AFRICAN PROJECTS

FIDELIS EMUZE, JOHN SMALLWOOD, WYNAND BEETGE


Abstract

The fragmented state of the construction industry is a global phenomenon visible in South African construction. The number of parties to a construction project has been on the upward trend in recent times. This increase in the number of members of a typical construction supply chain is invariably accompanied by an increase in management complexity. To counter the pitfalls of such complexities, the discipline has witnessed the proliferation of supply chain management (SCM) concepts of which integration is a notable aspect. Based on a succinct conceptual framework that was derived from the construction SCM literature, this paper reports on barriers to supply chain integration. A questionnaire was distributed among the participants of two South African projects. The responses indicate that lack of integration is partly responsible for performance-related failures in the form of rework and defects. Moreover, poor payment mechanisms between contractors, their subcontractors, and suppliers tend to work against nurturing long-term relationships on a project and business basis. The conclusion is that there is major scope for promoting a collaborative working approach between supply chain partners in South African construction.

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