Evaluation of Nigerian Construction Industry Preparedness to Adopt Supply Chain Management1

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.