Int. J Sup. Chain. Mgt Vol. 9, No. 3, June 2020
273
Literature Review of Areas of Application of
Supply Chain Management in Construction
Industry
Nkolika J. Peter
*1
, Hilary I. Okagbue
*2
, Chukwuemeka O. Iroham
*3
, Akunnaya P. Opoko
*4
Adedotun O. Akinola
*5
1,3
Department of Estate Management, Covenant University, Ota, Nigeria
2
Department of Mathematics, Covenant University, Ota, Nigeria
4,5
Department of Architecture, Covenant University, Ota, Nigeria
1
nkolika.peter@covenantuniversity.edu.ng,
2
hilary.okagbue@covenantuniversity.edu.ng,
3
osmond.iroham@covenantuniversity.edu.ng,
4
akunnaya.opoko@covenantuniversity.edu.ng,
5
adedotun.akinola@covenantuniversity.edu.ng,
Abstract— Construction projects are becoming
increasingly complex and the conventional methods of
managing them have plateaued over the years. The
complexity could be traced to the complexity of
designs, which requires inputs from different
suppliers/contractors. This has led to fragmentation
where suppliers/ contractors specialize in a given
project and are contracted to deliver only on their
area of expertise. The aim of this paper is to produce
evidence of the areas of application of supply chain
management (SCM) in the construction industry. The
aim was achieved by a thorough literature review of
works done in the area. The results showed that all
the selected research on the SCM falls within eight
major areas. They are procurement, logistics, models
application, information, performance evaluation,
customer relationship, environmental management
and sustainability. Other subfields can be derived
from the areas.
Keywords— Supply chain, lean construction, green
supply chain, construction, procurement, recycling,
logistics, sustainability.
1. Introduction
Supply chain management (SCM) is the planning,
execution and coordination of the moving of goods
and services from the point of origin to where they
are to be further processed into finished goods or
consumption. SCM involves the management of
Interconnected, interlinked and interrelated
networks of human resources, software, projects,
activities, tasks, capital, machinery and information
that are deployed in the movement of a product or
service from a supplier to customers. Goods are
transformed in the process and delivered as a
finished or semi-finished products or services to the
end-users. Supply chain management is
intrinsically linked to value chain management [1].
The latter is concerned with the delivering of
valuable products and services to the market while
the former considers all categories of products and
services. SCM also includes planning,
management, and coordination of suppliers, service
providers and customers in procurement and
logistics activities [2].
The origin of SCM can be traced to the
manufacturing industry [3] but the concepts have
been applied to different fields thereafter. Logistics
and inventory management are areas that depend
on SCM [4-6]. Different industries use SCM to
improve responsiveness to customers, reduced time
of goods delivery to the customers and to achieve
competitive advantage. Some examples of
industries where SCM has helped to improve
production and minimize losses are aviation [7-
8], fashion [9] and food [10-11]. Specifically, the
concept of SCM is very important in the marketing
of manufactured goods and services, hence
effective use of SCM have proved decisive in
investment and portfolio management [12-15].
Other areas can be found in [16-19].
The construction industry is one of the key
economic sectors. Construction activities are often
one of the measures of economic advancement and
quality of life. Construction projects are becoming
increasingly complex and the conventional
methods of managing them have plateaued over the
years. The complexity could be traced to the
complexity of designs, which requires inputs from
different suppliers/contractors. This has led to
fragmentation where suppliers/ contractors
specialize in a given project and are contracted to
deliver only on their area of expertise. What is
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International Journal of Supply Chain Management
IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print)
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