New perspectives on construction supply chain integration

TLDR

A 1998 UK government review urged adoption of manufacturing‑style initiatives to boost productivity and cut costs, prompting research into supply‑chain practices for large contractors, but SMEs in subcontractor and material supply roles have been largely overlooked. This study investigates the role of SMEs within re‑engineered construction supply chains. The research found that SME scepticism creates barriers to integration, and that highlighting mutual benefits is essential for performance gains.

Abstract

In 1998, a government‐sponsored review of the UK construction sector called for the adoption of initiatives from manufacturing industry in order to increase productivity and reduce costs. Subsequent research has focused on how supply chain management practices could be implemented effectively by clients, consultants and large contracting organisations. However, little attention has been paid to the integration of small and medium‐size enterprises (SMEs) in the subcontractor and material supply sectors. This paper presents the findings of research that focused on the role of these SMEs in re‐engineered construction supply chains. It was found that significant barriers exist to supplier integration within the construction sector, which stem from SME scepticism over the motives behind supply chain management practices. It is suggested that the industry must make greater efforts to extol the mutual benefits of supplier integration to SMEs if significant performance improvement is to be achieved.