A comparative study of supply chain management in building construction projects within Kathmandu valley

Abstract

The supply chain plays a vital role in the successful completion of a construction project. Lack of proper supply chain management in any construction project results in cost overrun, time overrun, claims, disputes, and low productivity, which may ultimately lead to failure of the project. The overall objective of this study is to perform a comparative analysis of the need and importance of supply chain management based on stakeholders' perceptions of the selected building construction projects in Kathmandu valley. A total of thirty-four projects were taken for the study. Among these, 16 projects were executed by DUDBC and NRA, and 18 projects from private developers. The primary data collection tool used for the study was a questionnaire survey based on the Likert scale. A key informant interview along with a desk study was also conducted. The responses of questionnaires were ranked using the Relative Importance Index (RII). The findings were based on the comparison of views of public and private stakeholders on factors influencing the importance, challenges, and solutions of the problems of supply chain management. The findings show that both the public and private stakeholders agree on the high importance of proper supply chain management in the construction industry, but their perceptions differ on factors contributing to and benefits obtained from an efficient supply chain. Additionally, public and private stakeholders have differing opinions on the most pressing challenges facing supply chain management, its efficiency, and material management. Public stakeholders focused more on quality and delayed delivery of materials, while private stakeholders focused more on cost and efficiency issues. On the solutions and approaches for improvement of supply chain management, both the public and private sectors agree that improved integrated management between the supply chain and project site is essential to maintain a reliable and efficient supply chain. However, both stakeholders differ slightly on the approaches needed to improve supply chain management. Finally, the study shows that public and private stakeholders in building construction projects in Kathmandu agree that while major challenges exist in supply chain management, solving these problems through proper integration and communication will lead to an efficient and qualitative supply chain vital for a project's completion.