Relationships among Supply Chain participants in Malaysia

Malik M.A. Khalfan, Nawaf Alshanbri, Tayyab Maqsood

    Research output: Contribution to journalArticlepeer-review

    1 Scopus citations

    Abstract

    Supply Chain Management (SCM) is a concept that is used right across the world in many industries. SCM involves the management of relationships with all parties including client, contractor and sub-contractor in order to achieve the specific needs of a client's objectives in a project. Construction organisations that have an effective Supply Chain Management in place can expect reduced project costs and increased reliability and speed of facility construction. Several studies have been conducted over the past decade in establishing a preferred procurement method/process used on construction projects and defining the relationships that exist between each party involved in these projects, however, companies differ amongst one another which has resulted In an array of different responses. A short study was conducted using semi-structured Interviews with industry representatives last year to investigate the extent of supply chain relationship and integration within Malaysian construction organisations. The basic aim of the study was to test whether the relationships are affected by changes to the way in which a project is delivered, and this was done by verifying the hypotheses that varying procurement methods impact or alter subcontractor-contractor relationships; disputes are resolved without arbitration when differences occur and has affects on future working relationships; and duration of a project potentially allows for a closer bond between parties. The paper concludes that contracting structures and styles significantly affect the relationships between organisations and that procurement techniques and contractor selection Is an imperative process in keeping strong relationships for the duration of the project or contract works. This paper also found that the main difference between conventional procurement methods and SCM lay in the emphasis that is placed on incorporating relationships and collaboration between all project parties. The study also revealed that in order to implement any SCM models, the clients' role is crucial because it needs to be initiated by the client predominately In public projects. The study will help the industry participants In Malaysia to understand the Importance of using SCM approach on their projects resulting Into building long-term relationship among parties involved.

    Original languageBritish English
    Pages (from-to)49-67
    Number of pages19
    JournalMalaysian Construction Research Journal
    Volume13
    Issue number2
    StatePublished - 2013

    Keywords

    • Construction industry Malaysia
    • Project procurement
    • Supply chain management

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