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Evaluation of Nigerian Construction Industry Preparedness to Adopt Supply Chain Management

STUDENT PAPER

By Emmanuel Abah

and

Anita Dzikiwi Adamu, PhD

Federal University of Technology

Minna, Niger State, Nigeria 

 


 
ABSTRACT

Supply chain management has received a lot of attention in the third world countries since the latham and Egans report due to benefits such as streamlining extensive cost and time overruns which have besieged the Nigerian construction industry, in Nigeria however, it is yet to receive such attention. This research through the use of questionnaire administered to professionals in the built environment sought to elicit information on their level of awareness, level of involvement in supply chain management, the benefit so derived from the adoption of supply chain management and limitation to its full adoption as well as the degree of preparedness of the industry as a whole to adopt supply chain management. Of the 385 questionnaires distributed 200 were returned (52%).It indicates that professionals to certain degree are aware of supply chain management practices with the top three being relationship development, management leadership, and information sharing. Professionals are also involved in supply chain management practices with the top three being information sharing, early appointment of partners, and relationship development. Top three benefits of supply chain management according to respondents are better resources utilization, Cost saving and improved productivity while the limitation to adoption of supply chain management has lack of management support, dearth in understanding of supply chain management concept and poor organisation structure as top three. The level of preparedness of the construction industry was determined using VERDICT readiness assessment model and reveals that the industry has achieved process readiness but is yet to achieve management, people and technology readiness.

1.0 INTRODUCTION

The idea of Supply Chain Management (SCM) originated from the manufacturing industry with its first visible signs traced to Toyota Motor Factory which used the concept to regulate supply (Vrijhoef & Koskela, 2000). The construction industry possesses a lot of similarity with manufacturing industry which makes SCM adoptable to the construction industry (Aloini, et al 2012).  Its goal was to greatly decrease inventory, reduce cost and duration of project thus improving project performance, to transfer site activities offsite to a more favourable condition, and to use of integrated management options so as to effectively regulate supplier interaction (Saka &Mudi, 2007). The Nigerian construction industry is however known for high inventory, absence of formal relationship and interaction with supplier (Saka &Mudi 2007), and cost and time overruns (Babalolaet al 2012).

The Nigeria construction industry faces an immense challenge in the managing its supply chain which is critical to a successful project delivery Saka &Mudi (2007). These challenges in the opinion Ajeet al (2015) could have resulted from paucity of awareness or paucity of involvement in supply chain management practices by various professionals.  Ajeet al (2015) surveyed the extent of awareness and involvement of quantity surveyors in supply chain management practices and concluded that though the awareness was high, the level of involvement of quantity surveyors was however low, this is a result of inadequate infrastructure in information Technology. The extent of awareness and extent of involvement of other professionals is the Nigeria construction industry is yet to be determined.

The implementation of supply chain management is limited by paucity of understanding of supply chain management concept, unclear strategic benefits to the organisation; lack of trust among other limitations which has restrains its adoption and application in the Nigeria construction industry (Amadeet al, 2016). Supply Chain management in Nigeria is also restricted by the difficulty of operating in the business environment in Nigeria which is characterized by poor infrastructure such as bad road, the unstable socio-political environment in Nigeria, corruption  pandemic even among security and law enforcement agencies further limits the adoption of supply chain management in Nigeria.

Aje et al (2015) found out that though, there is an average level of awareness of supply chain management practices among quantity surveyors, the level of involvement in supply chain management practices by quantity surveyors is still low. This could be an outcome of the degree of preparedness of organisations in the construction segment to adopt supply chain management practices which Saad, et al (2002) opined that is a fundamental issue that affects the effective adoption of supply chain management.

1.2       PROBLEM STATEMENT

Supply chain management is a network of organizations or entity, that are tied through an upstream and downstream linkages via different processes and activities with a view to producing valuable goods and services to satisfy end users Tiwari et al (2014). Supply chain management is therefore important to satisfying the clients and end-users. This highlights the need for professionals to be aware, and fully involved in supply chain management encouraged by an industry prepared to fully adopt the innovation.

Ajeet al (2015) investigated the level of quantity surveyors awareness of supply chain management praxis; the research similarly examined involvement extent of quantity surveyors and factors constraining their involvement in supply chain management activities. Amade et al (2016) asserts that paucity of understanding of supply chain management concept alongside unclear strategic benefits is the major constraints to the deployment of supply chain management. construction industry’s Supply chain management is however not narrowed to quantity surveyors alone as all parties plays a crucial role it is therefore imperative to investigate the extent of awareness of other professionals in the built environment and construction practices, their level of involvement in supply chain management activities alongside the constraints to successful adoption of supply chain management practices.

Saadet al (2002) identified and raised a fundamental issue related to the effective implementation of supply chain management practices which is the degree of preparedness of the organisation to adopt supply chain management practices. This was confirmed in Ajeet al (2015) where there was an average level of awareness of supply chain management practices among quantity surveyors however; there was low level of participation and involvement of quantity surveyors in supply chain management practices. This could be attributed to the degree of preparedness of the organisation towards adopting supply chain management practices.

It is consequently imperative to ascertain the degree of preparedness of organization towards adopting supply chain management practices alongside barriers that restrain the effective implementation of supply chain management despite the benefits of this innovation

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Editor’s note: Student papers are authored by graduate or undergraduate students based on coursework at accredited universities or training programs. This paper was prepared in 2017 as a deliverable in the Master of Technology Degree (M.Tech) in Quantity Surveying program at the Federal University of Technology, Minna, Nigeria. The supervisor is Dr. A. D. Adamu.



About the Authors


Emmanuel Abah

Federal University of Technology
Minna, Niger State, Nigeria

 


Emmanuel ABAH
is a Quantity Surveyor by training, and is studying for a Master of Technology Degree (M.Tech) in Quantity Surveying at the Federal University of Technology, Minna. He holds a National Diploma (ND) in Quantity Surveying from the Federal Polytechnic, Idah- Kogi State, and a Bachelor of Technology (B.Tech) in Quantity Surveying from the Federal University of Technology, Akure-Ondo State. You can reach him on [email protected].

 


Anita Dzikiwi Adamu, PhD
     

Federal University of Technology
Minna, Niger State, Nigeria

 

 

Anita Dzikiwi ADAMU is a lecturer in the department of Quantity Surveying, Federal University of Technology, Minna. She holds a Bachelor of Technology Degree (B.Tech) in Quantity Surveying from the Federal University of Technology, Minna, a Master of Science Degree (M.Sc) from Ahmadu Bello University Zaria-Nigeria, and a Ph.D. from Nelson Mandela University, Port Elizabeth, South Africa. Her research areas include Construction Management, Facility Management and Maintenance Management. You can reach her on [email protected]