Supply chain management in Sri Lankan construction industry

Abstract

This report presents the results of a study on the extent of understanding and implementation of the concept of Supply Chain Management (SCM) in the Sri Lankan construction industry. The study highlights the potential benefits of replacing the traditional methods of supply and the adversarial relationships and the short term relationships between the construction contractor, the client and the supplier by Supply Chain Management concept. To achieve the study objectives, the researcher conducted a literature review of the subject and designs a related questionnaire which has been distributed to 35 construction contractors in the Sri Lanka. The results display that SCM in the Sri Lankan construction industry is still at its infancy but growing awareness of the concept is evident. The study reveals that contractors are more oriented towards clients rather than their suppliers in the supply chain. They have more arrangements with clients than with suppliers. The problems in implementing successful SCM within the Sri Lankan construction industry are at present associated with an inappropriate traditional culture and the unique features of the organizational structure. Finally, the researcher presented recommendations to increase the awareness of SCM among the Sri Lankan construction contractors to overcome its implementation barriers and to reap all its potential benefits on the contractors and on the whole construction industry.