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TRANSCRIPT
Table of Contents
1.0 Introduction.....................................................................................................................................3
1.1 Research Background......................................................................................................................3
1.2 Research Aims and Objectives.........................................................................................................5
1.4 Research Rationale..........................................................................................................................6
1.5 Problem statement..........................................................................................................................7
2. Literature Review..............................................................................................................................7
2.1 SCM - An Overview..........................................................................................................................7
2.2 Construction Industry......................................................................................................................9
2.3 Construction Industry in UAE.........................................................................................................10
2.4 SCM, UAE Market..........................................................................................................................11
2.5SCM in construction industry.........................................................................................................12
2. 6 State of SCM in UAE in general.....................................................................................................14
2.7 Pros and cons of SCM....................................................................................................................15
2.8 Benefits construction industry UAE has from SCM........................................................................16
2.9 Summary:......................................................................................................................................17
Chapter 3.............................................................................................................................................17
3.0 Rationale for study design.............................................................................................................17
3.1 Search method for identification of studies:.................................................................................18
0 | P a g e
THE APPLICATION OF SUPPLY CHAIN
MANAGEMENT PRACTICES IN UAE
CONSTRUCTION INDUSTRY
3.2 Inclusion and Exclusion criteria:.....................................................................................................19
3.3 Ethics:............................................................................................................................................19
3.4 Description of each study:.............................................................................................................19
3.5 A Brief Insight into the Studies......................................................................................................22
3.6 Summary:......................................................................................................................................26
Chapter 4 – Result and Discussion.......................................................................................................26
4.1 Result.............................................................................................................................................26
4.2 Discussion......................................................................................................................................29
Case 1: The four roles of SCM in construction.....................................................................................29
Case 2: Risk assessment model selection in construction industry......................................................30
Case 3: SCM in the United Arab Emirates Construction Industry........................................................32
Case 4: A hierarchical framework of barriers to green SCM in the construction sector......................34
Case 5: SCM in Construction: A literature Survey................................................................................36
5.1 Limitation.......................................................................................................................................37
5.2 Recommendations.........................................................................................................................38
5.3 Result Conclusion..........................................................................................................................39
5.4 Plans for Dissemination.................................................................................................................40
5.5 Reflection of Learning....................................................................................................................40
REFERENCES........................................................................................................................................43
Chapter 1: Introduction
1.0 Introduction
Supply Chain Management is responsible for developing partnerships and relations that are
reliable between the stakeholders and the suppliers of the organisation. It can be said that
Supply Chain Management (SCM) is responsible for improving the visibility and velocity of
inventory in relation to advancement in the construction projects (Jap, 2001, pp.10). With
appropriate application of methods of SCM, organisations are able to achieve benefits both in
the short and long terms. A number of studies have proved that the correct tools of
application of SCM are responsible for providing 10% enhancement in the annual turnover of
an organisation (Jap, 2001, pp.19).
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1.1 Research Background
SCM has flourished in the realms of manufacturing having its origin from production that is
just in time as well as logistics. In current times, SCM is the representative of a concept of
autonomous management though logistics still holds dominance (Akintoye et al., 2000). The
issues are perceived and sorted in the perspective of Supply Chain with the consideration of
the interdependence that is existent in Supply Chain. SCM today has been an accepted
phenomenon that is widely applied across all industries starting from various industrial
manufacturing sectors, to retail and even software industry. Construction industry is one such
industry which has picked up this practice a little late .However, construction happens to be
one of the most booming sectors in UAE and some of the most astonishing buildings and man
made wonders like the Burj Dubai, the underwater luxury resort of Hydropolis, various man
made islands, indoor ski resorts and breathtakingly large malls are found here. But the SCM
practices were not known and applied in this country even in the late 1990’s. So it becomes
an extremely important research topic how UAE metamorphosed itself into one of the most
prominent building and engineering nations in such a short period of time and what exactly
is the scenario of SCM practices in the construction sector in this country.
Typically, SCM for construction based projects includes architects, engineers, primary and
sub contractors, supplier of materials who get together to build a single project for the client.
The complex concept of Supply Chain has been characterised by means of short term
relations that are adversarial and driven by a bidding process that is competitive. Construction
based SCM extends focus upon the strategies related to lean construction that include
evaluation of suppliers, purchase that is just in time, selection of sub contractors and their
relationship management, acquisition of equipments, sharing of information and management
of project quality.
The construction industry in the United Arab Emirates initially adhered to the traditional
method. With the huge development that took place in the last few years, the industry was
successful in implementing newer concepts along with inclusion of newer technologies.
There has, however, been inadequate research in the application of SCM in the construction
industry of the United Arab Emirates (Fernie and Thorpe, 2007). In order to fill this gap and
also have knowledge regarding the implementation barriers. In the United Arab Emirates,
awareness is required for implementation of SCM related practices. Such effective and
appropriate implementation requires the identification of the practical benefits as well as the
barriers in the industry (Titus and Brochner, 2005, pp.71).
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SCM refers to the classification of processes and flows that are taken into account for
meeting all the requirements specified by the client. A number of stages are taken into
consideration for the process of decision making and subsequent implementation of the
processes (Saad et al., 2002). In general terms, Supply Chain encompasses the producers and
suppliers; however, there is dependence on the retailers, consumers, logistic operations and
so on. So it can be summed that stakeholders are also included in the process of Supply
Chain.
The method of competitive tendering is the core of the construction industry. SCM was
initiated and then developed successfully in the industry of manufacturing. The primary
reason for implementation of SCM was for the purpose of regulation of materials. The most
important decisions related to SCM can be categorised as the supply chain related business
process, the supply chain related management component and the supply chain related
network structure. For successfully meeting the requirement of SCM, the construction
industry of the United Arab Emirates needs to implement a number of steps with the effective
SCM integration to the already existent systems (Davis, 2008). It is not always easy to
implement SCM in any industry unless a proper structure prevails in the organisations. SCM
may face hindrance in the form of opinion, raw or obsolete information and details pertaining
to the process of SCM which lead to disparity in understanding the client specification (Jap,
2001, pp.19).
The robust nature of the Chain of supply was identified with the design of a Building
Management System that is sophisticated with numerous points of monitor and control. In
recent times, the bigger establishments offer continuity in the realm of construction with
more interest in building relations that are beyond the suppliers in the first tier (Tah and Carr,
2001). Integrated teams of supply are applied in the description of an integrated total supply
chain that involves project delivery. This encompasses the primary contractor, sub contractor,
designers, facility managers, suppliers and others.
1.2 Research Aims and Objectives
The overall aim of the undertaken study is to effectively and efficiently understand domain of
good Supply Chain Management practices pertaining to the construction industry in general
and the papers that are relevant to the study on the application of SCM in the construction
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industry of the United Arab Emirates which has helped in shaping the country into one of the
most prominent of nations in the world with significant construction achievements in the
recent years to compete with the best structures in the world .
The objectives pertaining to the research has close association with the problem statement
and need to be summarised which can be achieved by means of the study undertaken. The
objectives of the undertaken study are specific in nature which will effectively break down
the parts in general and analyse the different research problem aspects. The objectives are
also instrumental in clearly specifying the intend of each stage that would be followed in the
following study.
The objectives of the study include the following:
To review the significance of SCM in modern times.
To identify the significance of SCM in the construction industry with special
emphasis on the United Arab Emirates
To review evidence that would be beneficial to provide direction to the construction
industry pertaining to waste management and green construction practices.
To make appropriate recommendation for practice and research in order to understand
the effectiveness of SCM in the construction sector of the United Arab Emirates so
that in the future more economic, environmentally sustainable and faster construction
procedures are followed.
To inform regarding policies and practices that are pertinent for SCM in The UAE
and thereby understand the current gaps or lacking which may be improved by
definite legislative measures by the government
1.4 Research Rationale
The undertaken study will make a systematic review of relevant literature which relates to the
application of SCM in the construction industry of the United Arab Emirates. In general
terms, SCM refers to the management related to the goods flow. This includes storage and
movement of raw materials, the inventory that is included in work in progress and the final
products right from the origin point to the consumption point (Vrijhoef and Koskela, 2000).
There exist a number of networks, business nodes and channels that are inter connected and
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are involved in providing services and products that are required by the ultimate consumers
on the process of Supply Chain.
SCM refers to the designing, planning, executing, controlling and also monitoring of the
activities related to supply chain having the objective which involve net value creation,
building of an infrastructure that is competitive, leverage of global logistics and
synchronisation of demand and supply with performance measurement on a world wide scale
(Cooper and Lambert, 1997).
SCM draws immensely from areas involving operations management, procurement, logistics,
and information technology and so on with the inclusion of an approach that is integrated.
Supply Chain is applied in the description of the interconnected hierarchy existent in supply
related contracts that is required for sourcing the components that are included in the process
of construction (Wandahl and Bejder, 2003). SCM involves proper understanding of the
segmentation and tracing of the services and products, people, organisations, activities,
logistics, resources and information that are effective in transforming raw materials into
products that are complete and fit to serve the purpose.
Also the various systems of procurement place the different elements related to SCM with
diversified organisations and disciplines. Performance and responsibility gets cascaded down
the chain of supply to the different suppliers who are otherwise not known to the
management belonging to the higher strata of the chain.
1.5 Problem statement
A significant problem of the industry pertaining to construction states that the first two tiers
of the chain of supply include agreements that are fairly onerous as there is development in
the chain which results in the decrease of the contractual liabilities till the suppliers at the
other end of the chain do not lock in (Wong, 1999). Unlike the industry of automotives, there
exists a peculiar difficulty in the construction industry which states that each building is
unique. The industry effectively contracts and expands which acts as a significant regulator of
the economy widely (Wang et al., 2007). The key pertaining to the chain is provision of a
strategy that is aligned with the program of the project. This is initiated in the stage of design
and scopes the work in packages. Evaluation is done early reliant on feedback from the chain
result in huge benefits in terms of value and cost (Xue et al., 2007). Capacity and capacity
related to production in the market that has control by demand and supply has significance in
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order to avoid the bottlenecks of the program. For example, shortage of materials like steel
ideally should encourage the designers to take into consideration a frame made of concrete.
There are many new age construction materials and techniques which are being used by the
architecture and engineers to bend a way across a wall of difficulties and limitations to
improve upon the construction practices and challenge the forces of nature like
gravity ,earthquake ,wind and erosion.
2. Literature Review
2.1 SCM - An Overview
The competitive scenario in the global market has given way to an increasing significance to
SCM (SCM). It is considered to be a crucial medium through which firms can attain
competitive advantage in a business environment (Jacobs, et al. 2009). The evolvement of the
SCM took place in the late 1980 in a manufacturing company, which gained momentum with
a widespread usage in the 90’s. The traditional term used was logistic. While logistics is
restricted within the boundaries of an individual firm, supply chain refers to the combined
networking of various companies which work together towards the delivery of a product in
the market. SCM can be defined as, “A process facilitating the functions of procurement of
raw materials, transformation of the raw materials into products and further distribution of the
finished products to consumers”, by Waters, C. (2010). SCM comprises of the stages and
planning involved in the accomplishment of the request of a consumer. According to Lopez
and Brands (2010), the perfect mix of logistics, production, location, transportation and
information the five primary participants in the management of supply chain, helps in the
attainment of an effective response in the target market of the suppliers. Companies involved
in supply chain must take individual and collective decisions based on the five areas crucial
for successful management:
Production – The how, what and when of production are the crucial questions for SCM.
What is the product which the market wants? How much is the quantity in demand? By when
are the products required? All the above three questions are the basis of production for any
organisation. The activity requires the designing of master production schedules involving the
production capacity of the manufacturing plant, quality control and maintenance of the
equipment utilized in production (Xue et al. 2007).
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Inventory – The required level and the type of stock maintenance at each level is the
importance of inventory control in SCM. Whether the requirement is for raw materials, semi-
finished or finished goods, the principal functionality is to act as a buffer at the time of need
and improbability (Wang et al. 2007).
Location – The cost efficient place of production and storage of inventory is another crucial
factor to be taken into account for the smooth flowing of products to the ultimate customer
through the most probable paths available.
Transportation – The how of products supply from one place to another is the transport
decision involved in supply chain. While air and road delivery is expensive, ship and rail
account to less expense involved with delayed delivery time. The uncertainty of deliverance
on time leads to higher stocking of inventory levels (Lambert et al 1998).
Information – Well-timed and correct information helps in effective decision making
involving what and how much to produce, where to store and locate inventory and the best
possible way to transport the same.
Figure: SCM Components
Source: (Thomas and Griffin, 1996)
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Fernie and Sparks, (2009) highlights that the effectiveness of a company’s supply chain is the
core factor behind its success. Who an organisation is and what it can do is shaped by its
supply chain and the market it serves.
2.2 Construction Industry
An industry present in every developmental activity of an economy is the construction
industry. Construction activities and its output play an integral part in the national economy
of a country and its industrial development. The growing rate of urbanisation, economic
growth and population has lead to an increased demand in specialized infrastructure in all
forms. The demand for infrastructure is considered to be the driving force of the construction
industry in present times (Aminah and Keith, 2009). A crucial part of any economy, the
construction industry plays a major role in the employment of a country. The industry takes
into account all businesses involving construction of buildings, roads, highways, bridges etc
also those who are typically involved in the specialized work including contractors,
architects, electricians, plumbers and masons (Wong, 1999). The industry helps in the
economic growth of a nation through its all round development in productivity, employment
generation along with income generation and its redeployment. The construction industry
plays a major role in satisfying the physical and social requirements of an economy through
the creation of shelter, infrastructure and consumer goods. The issues which crop up in the
industry primarily revolve around the four resource categories of management, capital, labour
and materials. The management and education of the management staff in the industry is
crucial for the industry growth. Due to the shortage in supply of management manpower
along with the training and education system being time consuming and difficult, has lead to
the lowering of the rate of availability of manpower in all nations. According to the study of
Chen Y (2010), the capital issues crops ups mainly due to financing problems in the working
and investment capital. High rate of interest, lack of adequate credit facilities available in the
market for equipment purchase and supply of raw materials, unavailability of equipments and
technologies through rent has lead to financial inadequacies for the industry. Despite the fact
that the industry requires well-trained labour, accessibility problems have arisen due to
immobility of labour force, remote construction sites away from developed areas, low
productivity due to ill health and lack of nutrition etc (Waters, 2010). The availability of raw
materials and required levels of inventory in the local market is another matter of concern for
the industry (Pink, et al. 2013).
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2.3 Construction Industry in UAE
The recent economic recession has affected the construction industry economic situation
leading to a cosmic change in the nature of business along with rigorous competitive
environment been created in the United Arab Emirates (UAE) along with increased entrance
of international contractors and investors in the lookout for opportunities (O'Brien, 2009).
The industry has received a boost in the early 2013 with an award of USD38 Billion worth of
projects along with an expected award of projects valued at around USD46 Billion in 2014.
The increase in the construction movement in UAE has lead to an increase in the demand
factors related to construction equipments, raw materials required in construction and
building, technology and tools (Benton and McHenry, 2010). Due to the numerous upcoming
and ongoing projects and high demand of technological equipments for work
accomplishment, a consecutive rise in the confidence of investors is noticed (Saad et
al .2002) The same has shown way into increased rate of national and international
investments flowing into the industry with new projects being announced (Petrovic-Lazarevic
et al., 2006). The UAE construction market has been successful in attracting international
equipment and material manufacturers. The enormous competitive pressure has lead to an
enhanced focus on innovation, creative strategies and technologies in a bid for growth
sustenance and development in the UAE market. Roberts (2010) highlights in his research
that the growing economy has lead to an all round infrastructural development in the emirates
economy with special emphasis in Dubai. While Ben R, (2010), emphasizes on the primary
advantage being enjoyed by the industry is the huge investment rates from the private and the
public sectors, the studies of Barkhi and Daghfous (2009), shows that the industry has been
facing significant risks based on disparate construction plans, political, social and cultural
issues. The general trend in the industry highlights the fact that the risks should be distributed
between the contractors and the owners of the construction industry but on the contrary the
latter are quite reluctant in sharing the risks. The decision making problems arising out of
time and cost related issues lead to the major factors of variation in the construction industry
of UAE (Segerstedt, 2010). The disparity has lead to a gap in the demand and supply in the
industry.
2.4 SCM, UAE Market
With the fast paced economic development of the UAE, the emphasis on the SCM is on the
high. The urban planning council of Abu Dhabi stated in 2010 that through SCM, industries
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aim at improvising on the trust and association amongst the partners involved in the supply
chain with further improvement in the product visibility and growth in the market. Huge
investments in the growing economic sector of the UAE have lead to a maximization of
performance to earn the maximum return on investments along with the satisfaction of
customer requirements (McDonald, S. 2009). To take care of the best possible operational
aspects along with the incorporation of the best possible practices throughout, the
organisations in the UAE has been facing an increased demand in supply chain and its
effective management. As compared to other countries in the past, UAE had a lesser demand
in the technicalities and adaptability of the SCM (Thomas and Griffin, 1997). But with an
amplified competitive market scenario along with an increased emphasis on the productive
efficiency, deliverance and operations has lead the economy to give importance to supply
chain in the organisation strategy (Oakland and Marosszeky, 2006). The strategic objective of
the organisations plan effectively to ensure the continuity of the demand and supply of
inventories along with the maintenance of stock levels to protect supply issues arising during
production. To necessitate the development of social responsibilities arising from the
relationships built between customers and suppliers, supply chain plays a crucial role in
smooth productivity flow and adhering to the corporate social responsibilities of
organisations (Walker, 2007). An advanced strategic adaptation of the SCM is crucial for the
UAE competitive market for a secure and smooth management and development of the
organisations involved in the supply chain (Katzenbach R, 2010).
2.5SCM in construction industry
SCM is the technique of channelizing the raw materials into final products. It is a methodical
approach which helps in reducing the overall expense of the organisation through apt
management of the flow of product or services. It includes various ways in which the raw
materials are stored, inventory maintained and the way a finished good is processed
(Mentzeret al., 2010). The SCM is therefore defined by Mentzer as a “systemic, strategic
coordination of the traditional business functions and the tactics across these business
functions within a particular company and across businesses within the supply chain, for the
purposes of improving the long-term performance of the individual companies and the supply
chain as a whole.”
The concept of SCM developed in the manufacturing industry in 1980 and slowly influenced
other domains. The concept originated from the production related to just in time as well as
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logistic In current times, SCM is considered to be a managerial concept that is autonomous in
nature though the dominance of logistics is still notable (Mohamed, 2006). For a construction
project, SCM typically would include primary and speciality contractors and subcontractors,
engineers, architects, suppliers of materials who get together for building a project for
specific owners. In the construction domain the supply chain typically refers to an end to end
connection which exists between the stakeholders along with those who has joined as
partners for the delivery of a particular project (Hugos, 2010). It includes the planner,
construction manager, designer, owner, architect, general coordinator, distributor,
subcontractor, manufacture and supplier.
Figure: Supply Chain in Construction Industry
Source: (Saad et al.2010)
SCM in construction encompasses key issues like demand of the client, design of the project
and the way the business proceeds (London, 2008). It is an overall process to manage,
monitor and control all logistics or inventory related activities. SCM in construction industry
helps in reducing the overall expense of the industry by controlling logistics. The domain can
easily enhance profitability by employing SCM system (Aloini et al, 2012). The principles of
SCM typically focus on smoothen the process of construction and managing the process
effortlessly.
In the construction domain the supply chain approach may be divided into two broad
categories namely, material chain and construction chain. These divisions help in separating
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the procurement as well as the management operation. These two are connected to the central
project which ensures smooth flow of the work by maintaining apt flow of information
without any obstruction in between (Michael and McCathie, 2012). SCM in the construction
industry extends focus on certain strategies related to Lean Construction that include
purchasing on just in time basis, evaluation of the suppliers, selection of the sub contractors,
relation management with the sub contractors, acquisition of equipments, sharing of
information, management of project quality and so on (Walker, 2007
).
2. 6 State of SCM in UAE in general
SCM is defined as “coordination of independent enterprises in order to improve the
performance of the whole supply chain by considering their individual needs” (Fernie and
Thorpe, 2007). With the incessant growth of business in UAE, SCM approach is becoming
important every day. Logistics has evolved as an integral aspect of the business. Thus,
maintaining inventory and controlling it appropriately is a new challenge in UAE. It is here
that the implementation of SCM in the industry may be identified as an effective tool to help
managing the business effortlessly (Hugos, 2010).
SCM aims at improving the relationship between the chain partners, by handling inventory in
a professional organised manner. Recently companies based in UAE have concentrated in
employing SCM approaches (Crowder, 1983). Irrespective of the domain, supply chain
approaches have been implemented in the UAE based companies. Health, hotel, construction,
food & beverage every industry pillar has successfully implemented SCM to improve
profitability by controlling inventory and monitoring chain of product or the flow of service
offered (Harland, 2009).Though research suggest that many companies are yet to implement
the SCM approaches yet those who have used it has benefited marvellously.
The global recession of 2009 affected the growing industries in Dubai severely (Fellows,
2011). It affected the daily business. About 230 companies in UAE came together to discuss
the state of SCM in theindustry and identified the below mentioned points (Gorgenla¨nder,
2011);
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SCM is the backbone of any company. Hence almost every company agreed to
implement SCM approaches in the firm. It is a unique way of enhancing business by
bonding better with the customer. One can easily reduce cost of production and
reduce product price (Hugos, 2010). Thus satisfy the customers and offer quality
services to improve profit earning.
Identified people as the vital asset of the organisation.
End to end visibility of services that will lead to customer satisfaction
Employing new age technology to achieve higher productivity.
Based on the situation, the management may implement approaches like the SCM approach,
social system approach and systems approach to improve individual performance in the UAE
construction site (Mentzeret al., 2010).
2.7 Pros and cons of SCM
There are various advantages and disadvantages of implementing SCM in a particular
company.
Advantages of employing SCM system
Most modern organisations have employed this technique of SCM to achieve matchless
success in the business.
Helps in reducing cost of the company: monitoring with the help of apt SCM approaches help
in reducing the overall expense of the business by helping in structuring it appropriately.
Boosting internal economy through cooperation and innovation helps in improving external
economy (Michael and McCathie, 2012).
Reduce risk: risks along with uncertainties that are affecting the external market environment
may be reduced with the help of implementing apt techniques like information sharing,
commitments towards future, insurance of quality as well as quantity supply, sharing risk and
building trust (Aloiniet al., 2012).
Enhance efficiency: Managing the flow of basic material and exchanging information in a
particular organisation helps in increasing its performing efficiency by streamlining the
information (Xiaolong, 2004)
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Employing innovative technology: the regular technological innovation in the IT domain
helps in fulfilling the demand of the market by fine tuning key aspects of business.
Traditionally SCM was maintained on pen and paper, now it is maintained with innovative
software. Thus every day there is an innovation which helps in simplifying the chain
management (Michael and McCathie, 2012).
The probable savings that may be raised by wastage removal and improving on the supply
chain include primary issues like decisions being made based on cost and not on price,
modularisation of material and products as and when applicable for simplifying and
standardizing the concept of supply chain, evaluation of the process activity with possible
improvement as applicable (Brindley, 2004).
Disadvantages of SCM
Though implementation of SCM helps in reducing cost and improves profitability of the firm
it is not a very easy process to implement. It even enhances the performance of the firm.
However, the management system is not free from problems (Segerstedt, 2010). When the
system is applied to the small or mid-sized firm it has found increasing the overall expense of
managing the business operation. While the big firms can afford the additional expense, most
mid-sized or small firms face challenges with the rise of overall expense (Albaloushi and
Skitmore, 2010).
Secondly: Most companies use a general or basic system to manage their inventory,
implementing a completely new and advanced system would hamper the pace of its steady
growth. It can work as a hindrance to the already existing steady growth (Hugos, 2010).
Thirdly; staffs may refuse to accept this new complicated system as it happened in Nike.
Lack of appreciation for SCM will fail to improve productivity of the business. People in
Nike found the system complicated and training of using the software increased the overall
expense (CrespoMarquez, 2010).
Thus, SCM though is helpful in controlling logistics and aims at improving profitability,
however have limitations.
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2.8 Benefits construction industry UAE has from SCM
After conducting an indepth research on the application of SCM in the construction industry
in UAE, it can be said that the application of the system is still in the nascent stage. Though
the SCM is not a new concept and other industries have already implemented it to enhance
business, however, the construction experts generally practice the traditional methods in
general. SCM has been employed by some key constructing firms who have experienced how
this methodology has helped in achieving a myopic control over the waste management issue
in the construction domain (Michael and McCathie, 2012).
Implementation of SCM in the construction industry of UAE has led to experience the below
mentioned benefits over the years;
Firstly, the construction industry in UAE is exceptionally fragmented. Most companies have
two distinct areas of specialisation, design and construction, and it is here the lack of
cooperation crops up. Poor communication, lack of responsibility and differences in
functional discipline leads to problems (Hugos, 2010). It is with the help of the SCM system
the construction company has improved coordination among different departments. A well-
structured system and planning in work execution has helped the UAE construction
companies to develop some of the finest building in the world.
Secondly, cost reduction and improve profit earning is a key advantage of using SCM in the
construction industry in UAE. The recession of 2009 has affected every business house. In
such a crisis situation saving money which enhances work efficiency is important for every
firm. Implementation of SCM approaches in the industry has helped in both streamlining the
system and also increased profit earning of the firm (CrespoMarquez, 2010).
Thirdly, communication gap could be easily eliminated from a project by following a proper
systematic approach.
Fourthly, it helps in developing better customer relation by offering desired services. When
the overall expense of the product development has reduced the company can easily offer
quality services or products to the customer at an economic rate (Hugos, 2010). Thus develop
a better brand image with simple effort.
Thus it can be concluded that the construction industry is a fragmented area which has
benefitted exceptionally from the application of SCM techniques in UAE. SCM is a
significant contributor to the industry pertaining to construction. The concept offers
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guidelines that may be applied in the analysis, re engineering, adequate coordination and
constant improvement the process of construction (Tah and Carr, 2001)
2.9 Summary:The chapter tries to integrate by parts all the various angles the topic of research can be
approached from right from SCM in general to SCM of construction Industry in UAE. It is
imperative to understand all the various ingredients pertaining to this research topic and
context especially since it has three variables such as the field which is SCM , the industry in
the form of construction sector which also is a less explored one when it comes to
implementation of SCM and the third the country UAE which has been over the years one of
the most prominent sites for latest construction.
Chapter 3
3.0 Rationale for study design:
The premier purpose and idea behind this chapter is to analyse the materials that are
accessible and chalk out the salient areas which require more in depth research .the research
design will be systematic review. Higgins and Green (2005) opines “A systematic review is a
scientific tool that has been developed for appraising, summarising and communicating the
outcome and implication of or else uncontrollable quantities of research”. The major
advantage of systematic review lies in the fact that systematic review can identify,
summarise, garner information and analyse the researches previously done pertaining to the
field of study in such a way that it is possible to zero in one those areas which have been duly
addressed together with those points which have been missed out in previous researches. The
systematic review has thus the advantages of critically reviewing the literature and finding
the salient points within the same and presenting it in the context of the research (Higgins and
Green, 2005). A systematic review extends focus on the questions related to the research with
the attempted identification, appraisal, selection and synthesizing of the superior quality
evidence pertaining to the research that are relevant to the questions on hand. A high quality
systematic review is effective in random collection of trials and studies that are crucial for
evidence based studies. The data pertaining to the selected topic were restricted in number
specially so the country had been mentioned and details pertaining to the United Arab
Emirates were not adequate. Considering that the articles taken into account were published
and been used for similar purposes in the past, their authenticity cannot be doubted. The
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philosophical stance that the researcher has taken for this particular research is positivism
Positivism has been taken since the researcher believes that there is a definite outcome
possible by studying the available literature although it is not quantitative in nature.
3.1 Search method for identification of studies:
In order to conduct this secondary data based research it was necessary to systematically
search and skim not only Google in general but many data bases especially which contain
academic materials and references. Some of these were Google Scholar, Ref Seek, Ref
Repository, BASE, JSTOR, i SEEK etc. While searching the focus was primarily on previous
research articles by various researchers and student articles regarding the subject were
avoided for the purpose of better quality and reliability. For the purpose of search, specific
keywords like SCM in construction were used to narrow the search from the broad category
of SCM in general. Using the advanced search and Boolean search options available within
these search engines helped to chalk out the most relevant of all articles, which were in line
with the inclusion-exclusion criteria.
3.2 Inclusion and Exclusion criteria:
Considering the fact that SCM in the construction sector is a relatively new research agenda
and study the researcher chose to select all articles that were published between the years
2000-2012. Another very important consideration was to select the articles to be review in
English language only in order to avoid the hectic task of translation which would have been
very tedious for the researcher. Moreover ,in order to do justice to the research the researcher
had to avoid researches that were conducted on other countries pertaining to SCM practices
in the construction sector like that of US,UK, China ,Australia etc. Understanding the
geography of the region the researcher decided to include the neighbouring Middle East
countries like that of Saudi, Kuwait, Bahrain, Doha, Qatar etc. Research articles that were
conducted by students for the fulfilment of their degree were also carefully avoided.
3.3 Ethics:
It is necessary for every researcher to conform to certain policies or standards that have been
laid down either by the university, government or the regulatory authorities and the interest of
all concerned parties be protected(Smith, 2008). Although it is often assumed that secondary
data analysis raises very few ethical considerations however it is imperative to make sure that
17
the researcher does not in any way distort with the information or channelize the course of the
study to some premeditated idea. It is also the responsibility of the researcher to conform to
the rules and regulations stated within Data Protection Act (1998).the integrity of the
researcher to the cause of the research is of utmost importance.
3.4 Description of each study:
Author and Year
of Publication
Year Title of study Aims of the
study
Conclusion
AmirReza
KarimiAzari ,
Neda Mousavi , S.
Farid Mousavi,
Seyed Bagher
Hosseini
2011 Risk assessment
model selection
in construction
industry
Risk management
In SCM in the
construction
industry
A number of
techniques for the
risk assessment
related to
construction
project have been
adhered to by the
construction
industry though
adequate
attention has not
been given in the
selection of a
model that would
be suitable for
risk assessment
has been
mentioned in the
study
Ruben Vrijhoef
and Lauri Koskela
2000 The four roles of
SCM in
construction
Identifying the
Characteristics of
construction
supply chains
The study
contributes
towards
knowledge the
facts such as the
18
explicit relation
of generic
methodology of
SCM to the
different
initiatives that are
existent in terms
of development
of construction
supply chain
Helal Albaloushi
and Martin
Skitmore
2008 SCM in the UAE
construction
industry
To assess the
utility and state
of SCM in the
construction
sector in UAE
The application
of SCM
principles in
Construction in
UAE is a very
new concept with
differences
between foreign
construction
companies and
the native
contractive
companies
pertaining to
implementation
of the principles.
Ranjan Tiwari,
Henry Shepherd
and R K Pandey
2014 Supply Chain
Management In
Construction:
Literature Survey
An in depth study
of SCM practices
in the
construction
industry in
particular and the
problems in the
same.
Various
numerical models
of SCM have a
been formulated
but the optimality
of the methods is
debatable and it
varies for each
19
company or
institution.
Sreejith
Balasubramanian
2012 A hierarchical
framework of
barriers to green
SCM in the
construction
Sector
To understand the
potential barriers
in the way of
implementing a
Green SCM
system in the
construction
industry
A noteworthy
strategy for
taking up the
challenge of
reduction of
carbon emission
would be Green
SCM (GSCM)
and the
subsequent
enhanced
sustainability due
to the potential of
improvement of
organisational
environmental
performance
3.5 A Brief Insight into the Studies
Study 1: The four roles of SCM in construction; Vrijhoef and Koskela (2000)
It is believed that due to the peculiarities associated with construction, SCM plays specific
types of role in the domain. The two pressing issues that are related to supply chain in
construction include the increased weight economically of supply chain and the lag in
development of productivity. The increase in productivity in relation to construction of
building has been relatively slow though it cannot be considered adequate for compensation
for the average level rise in the cost of labour. Relatively, primary contractors are involved in
the purchase of higher material and labour. This constitutes 75% approximately of the
turnover of such contractors. As a result of this, such contractors have increased dependence
20
on the other elements in the supply chain of construction such as the sub contractors and
suppliers.
It can be said that the study contributes towards knowledge the facts such as the explicit
relation of generic methodology of SCM to the different initiatives that are existent in terms
of development of construction supply chain, the empirical assessment of the current
construction status in terms of supply chain, reliant on the new generic theories and empirical
understanding of SCM, the role limitations and so on. The construction logistics and material
handling should also be kept in mind. Another factor which affects the supply chain is the
variance in the capacity of supply and ever changing on site demands. It can easily be taken
into account that the knowledge related generic body that has been accrued in terms of the
SCM framework tends towards better understanding of the problems of the construction SCM
and guides towards the required direction that needs to be taken. It is required to implement
the SCM practical methods for taking into account the specific construction situation and its
related characteristics.
Study 2: Risk assessment model selection in construction industry; KarimiAzari et al.
(2011)
A project is considered to be people who form an organisation being dedicated towards the
deployment of a resource set having specific objective or purpose. Project management
includes resource plan, directing, control for the achievement of objectives or goals that are
specific related to the project on hand. There are a number of uncertainties in the industry of
construction and such issues include the fluctuation in the profit margin of the organisation,
the process of competitive bidding, alterations in the weather, productivity observed at site,
political scenario of the nation, contract related rights, inflation, existing competition in the
market and so on. Thus the number of risks in the construction industry is higher than the
other industries. With the industry becoming more advanced, the uncertainties witness an
increase also. It is required that the construction companies overcome such uncertainties for
accurate assessment of the effect such sources have to determine the risks associated with
each project and tackle them efficiently. A primary step in construction risk management is
identification and assessment of the risks that are potential.
Though it is significant in the success of construction related project management,
management of risks has not always got adequate importance as the other processes of the
realm such as scheduling and scope. Risk management related process ideally includes
21
identification of risk, assessment o risk and mitigation of risk. The method that has been
proposed will be successfully able to discriminate among the methods of risk assessment with
adequate clarity. The proposed method is the way of solving the TOPSIS of the risk
assessment model under a fuzzy environment where there a number of decision makers and a
committee to assess the minimum risk model The effective identification and subsequent
assessment of project related risk formulate the crucial procedures that result in success. A
number of techniques for the risk assessment related to construction project have been
adhered to by the construction industry though adequate attention has not been given in the
selection of a model that would be suitable for risk assessment.
Study 3: SCM in the United Arab Emirates Construction Industry; Albaloushi and
Skitmore (2008)
SCM is considered to be for improvement of processes that helps in saving cost and enhances
the revenue in terms of business strategy. Supply chain in terms of construction encompasses
the processes of construction commencing from the primary demands of the client or the
owner, then designing, constructing, maintaining, replacing and finally demolition. The
different organisations who are part of the process of construction are also included such as
the owner, the client, the designer, the general contractor, the supplier, the sub contractor and
so on. Construction related SCM is considered to be the practice followed by the company
groups as well as individuals who work within the network of processes that are inter related
for satisfying the ultimate needs of the customers in a collaborative way while providing
rewards to the chain members. SCM is most beneficial in the enterprise level involving a
number of companies. SCM in construction does not refer to only the chain of businesses in
construction with relations that are business to business but also refers to the network that
includes a number of organisations and relations including information flow, material flow,
products and services, fund flow that occurs between the designer, owner, general contractor,
sub contractor and also the suppliers.
In United Arab Emirates construction companies involve foreign companies where each of
them are associated with a minimum of one local company counterpart. Both the companies
agree on the significance of SCM though the implementation is different for both. The
approach is contrasting in terms of coordination and knowledge sharing. More awareness of
the significance of these factors leads to the success in implementing of SCM later on. The
Supply chain is not only related to single construction business but it is a multiple business
22
and institution relationship where the entire UAE construction business is affected as they are
interlinked to each other The difference in SCM of the two parties affects the supply chain
implementation in the nation making it different from the other countries that are developed.
This is mainly as the approaches are situation based different.
Study 4: A hierarchical framework of barriers to green SCM in the construction sector;
Balasubramanian (2012)
The sector of construction is accountable for almost 40% of the total emission of carbon in
the world as per the United Nations Environmental Program which is significantly higher in
United Arab Emirates where the swift growth of the construction sector resulted in the rise of
energy being used and subsequent greenhouse gas type emission. In the scope of framework
development towards a model and adequate assessment of the barriers faced by GSCM in the
construction sector of United Arab Emirates, there exists a gap in the knowledge which is
significant to a nation like United Arab Emirates where the concept of GSCM is relatively
new. The state government and the federal government require a framework for encouraging
and regulating organisations in the adoption of a GSCM that can be termed as sustainable.
Hence if an efficient framework is lacking in the evaluation and modelling of the barriers it
may lead to the lacking of a green initiative amongst the stakeholders of the construction
industry. In order to determine the gap, the queries that need to be catered to include
knowledge about the barriers that are critical for the adoption of an effective GSCM in the
construction sector of United Arab Emirates, the contextual relation between the barriers,
methods of developing a framework that would effectively and easily display the complicated
interdependence of the barriers and the classification of the barriers depending on their
importance and criticality. The interpretive structural modelling (ISM) is put to effective use
for the purpose of modelling and subsequent analysing of the complicated influence of the
different criterions and also for the purpose of creating a framework of hierarchical structure
amongst such criteria. The demands pertaining to complexity science is thus met and a
systematic structure is displayed. The Driving and Dependence Power Analysis (DDPA) is
also applied. .These form the crucial barriers in the GSCM adoption in the construction sector
of the United Arab Emirates. The internal barriers are reliant on the external ones. Policies
are required by the government to attract right resources.
Study 5: SCM in Construction: A literature Survey; Tiwari et al., (2014)
23
Huge projects of infrastructure construction execution include issues that are complex in
terms of the attributes such as geography, atmosphere, topography and other constraints. In
modern times, such work are mostly mechanised with the optimum use of machinery for
desired output in order to achieve work quality of international standards specially for the
work that are considered to be challenging. Basic techniques of SCM have witnessed
extensive application in the construction industry. The approach included in mechanised
construction of projects that involve large infrastructure demonstrate immense scope and
successful implementation of the techniques all over the world have been achieved by a
number of companies involved in construction. The concept application in the construction
sector require the managers of supply chain to get out of the traditional mould pertaining to
the manufacturing industry and make the idea of supply chain more centric towards the
project than the organisation. This is required since the requirements of the construction
project are immensely customised and supply chain need to adapt and duly redesign to match
the priorities of the clients. The SCM provides the scope for constant improvement, better
coordination at each level and a sense of coherent bonding in the whole process of supply
chain. The various aspects of SCM includes the reduction in the onsite costing which can be
done by ensuring a smooth flow of labour and work between the labours and contractors
The general requirements of the construction project clients include timely execution of the
project with all work being completed as per the contract defined scope, standard quality in
terms of execution in accordance to the terms of the contract, doing away with cost overruns
and execution cost being within the project cost and the aim of the supply chain to fulfil the
requirements of the client with a systematic approach to the activities of the construction and
the project involved agencies.
3.6 Summary:
This chapter identifies and presents the five major case studies that have been taken for this
research which will help to understand the research in the best possible way. The studies are
varied and have approached the research from various angles in order to eliminate the
possibility of missing out on something. All the studies are very recent and thus are
intrinsically linked to the research and will help to contribute positive findings. This chapter
also lays down the methodology followed for this research and how and why the particular
24
studies have been selected with all the inclusion and exclusion criteria as well as details such
as ethics and rationale behind the approach of the research.
Chapter 4 – Result and Discussion
4.1 Result
The study undertaken has brought together relevant findings from a number of research
related articles having diversified methodologies which carves the pathway of the review
study having a diversified characteristic. It has also been indicated by the research study that
the strategies that work well for the application of SCM in the construction industry of the
United Arab Emirates are effective for the nature of work included.
SCM (SCM) is the basic framework for the proper running and coordination in any
construction business. The integration of SCM and the onsite activities in any construction
site is an important aspect for the success of the venture and smooth transfer of products
through the supply chain to the onsite location is required. But lack of conceptual deficiency
and proper objectives the total supply chain is hampered, especially so in the United Arab
Emirates where the availability of SCM is significantly inadequate. A strong understanding
between the management related to the supply chain and the on site management and labour
is necessary to manage with whatever resources are available and to put them to effective use.
Improved, construction logistics and material handling leads to an effective SCM process.
Prefabrication and industrialisation are the ways to remove the onsite activities from the
production chain. Mainly three case studies have been formulated to analyze the ways of
improving the SCM. The case studies deals with the lag in the supply chain with the
construction onsite which is also called the time lag. The various logistical problems faced by
the workers, negotiations of the products being delivered onsite. Risk assessment is another
important concept in the SCM. Proper communication between the various parties involved
both offsite and on site, the contractors and subcontractors who does not share a common and
similar work ethic. Thus a collaborative team work is required for the success of a project and
minimizes the risk associated with it. Though project management is dealt with much
importance in any project risk assessment is often neglected. TOPSIS provides a good
25
method of identification and assessment of risk and is more appropriate than other models
like MCDM.
The risk factor involved in a project includes three parts-risk identification, assessment and
mitigation. The method that has been inducted is an effective way to deduce the risk
assessment model with proper accuracy. To solve the TOPSIS of risk assessment model
under a fuzzy condition where there are a number of decision makers to deduce the minimum
risk model and work upon that model which would guarantee that minimum risk is involved.
Another model is the matrix method of risk assessment. That basic difference of the risk
assessment model and the proposed method is the method of choosing a fuzzy TOPSIS over
normal TOPSIS which deals in precise number. The fuzzy TOPSIS way of risk assessment is
more flexible and accurate. But in spite of all these there is no optimum and full proof model
that can be followed and the risk involved in each model varies. The SCM in UAE is
different from that of other countries and the risk involved is drastic and no well formulated
model is followed there. UAE being the largest construction site in the world with over
16,000 contractors and 34000 employees involved it is the largest business sector of UAE.
SCM in UAE is not only limited to a single project but with the collaboration of different
multinational enterprises and contractors failure in the implementation of a smooth SCM
affects the total industry as each of them are interlinked. Improvement on site conditions and
skilled management will help the supply chain. In UAE the current trend is the partnership
between a foreign company and local contractors. As a result conflicting interest and
difference in work ethics is prominent. So working towards a common goal with well defined
guidelines will help in the improvement of SCM.
In the hierarchical framework there are certain barriers to implement the Green Supply Chain
Management(GSCM) in the construction sites of UAE. These includes on one hand the
failure of proper policy making by the government on the other hand lack of skilled
professionals and lack of public awareness are also some of the reasons. The general public
should be given the opportunity to choose from a range of sustainable options and for that the
government has to take the initiative in encouraging them. GSCM policies are very much
important as it reduces the carbon emission and helps in building the social responsibility
image of the company following these guidelines .But in UAE the lack of proper governance
has so far limited the implementation the green initiatives among different enterprises and
stake holders of that enterprises. There are further scopes for the improvement of SCM
process by ensuring a smooth flow of labour between the suppliers and contractors which
26
would eventually decrease the onsite duration of the project and thus reduce the total cost of
the project. But on based on the literary survey it can be concluded further improvement in
SCM is required as many aspects of SCM are still unknown and unexplored. While the
construction industry of the United Arab Emirates display to the world supreme
infrastructural projects that are unprecedented and picturesque, the inability to implement an
effective system of SCM has in a number of ways hindered the projects which would with the
existence of a streamlined method of supply chain been facilitated notably.
4.2 Discussion
Case 1: The four roles of SCM in construction
As put forth by Vrijhoef and Koskela (2000), in traditional terms, it is not sufficient to have a
control over the supply chain of construction but what is required is a shift in the methods for
the management of such supply chain. There have been a number of initiatives related to
SCM in the construction industry which were either partial or scattered. The roles that SCM
plays include improvement of the interface present between supply chain and the site related
activities, improvement of the supply chain, transfer of the activities to supply chain from site
and lastly, integration of supply chain and site.
Reliant on the generic body and empirical analyses of the SCM related knowledge, there are
objective and subjective limitations in the roles pertaining to SCM. The limitations that are
subjective are because of the conceptual deficiency and the objective limitations are because
of the environmental characteristics in terms of the addressed problem or construction
peculiarities. It may be said that such limitations have hindered progress in the development
of the construction related supply chain.
The fact that costs have been stressed in logistic initiatives is a limitation that is subjective.
This resulted in the failure of addressing the impact of variability related to supply chain on
the site assembly. The objective limitation includes the lesser focus on the role for improving
the interface among supply chain and site activities in terms of the entire supply chain. In
relation to the role of supply chain improvement, the objective limitation is caused due to the
27
undisciplined and wayward nature of the activities of the customers. Both sides of the process
of delivery have problems. Initially the definition of product is not complete and towards
closure the date of delivery often is altered with chaotic conditions of installation. With
regard to the role of activity transfer from site to supply chain, objective limitations are
yielded. Pertaining to the role of integrating supply chain and site, a number of initiatives
have objective limitations that are related to the characteristics of the constructed objects. A
number of existent initiatives have logic that is based upon the idea that the effectiveness of
SCM is more with such chains that are stable having products that are standardised. This role
has certain subjective limitations as well. All the four roles of SCM are implemented to
improve and for the betterment of the entire supply chain. The real estate owners should
maintain a cordial relationship with the management of the SCM so that the flow of the
materials is smooth and well oiled. The various initiatives that can be taken by the
management are the coordination between the management on site and the suppliers that are
involved which the interface between the supply chain and the on site management. The
construction logistics and material handling should also be kept in mind. Another factor
which affects the supply chain is the variance in the capacity of supply and ever changing on
site demands. With the improvement of these two factors the improvement in SCM is
possible. Prefabrication and industrialisation are the means of removing of removing the
onsite activities from the production chain as a whole. To maintain the integration between
the site and supply chain open building and step by step procedure which gives the users the
opportunity to choose whether to postpone the construction of the interiors of the building or
not. The SCM of pre engineered buildings are more stable as they have to choose from a
limited set of options. The status of present construction chains have been observed in three
case studies conducted in Netherlands and Holland. The first of the case study deals with the
time required for the delivery and production in a housing project where the time buffer
played an important role. The price negotiation, engineering, onsite installation was the major
factors of the second case study which as a whole is known as the controllability problems.
The issue of site logistics was the point of case study three where it dealt with the extra costs
of logistics of building material in the site, bargaining and price calculations.
Thus as found in the literature review section SCM involves the primary and speciality
contractors and subcontractors, engineers, architects, suppliers of materials who get together
for building a project for specific owners. Now most of them belong to different set of
organisations that ultimately the project manager has to handle in order to implement all the
28
pieces of the jigsaw together in order to complete the project without any difficulty. The
study basically emphasizes the fact that the basic framework of the SCM remains same as
identified within the broad scope of the literature review with adjustments for the peculiar
nature of the construction industry and taking the various environmental concerns into
account.
Case 2: Risk assessment model selection in construction industry
As explained by Karimi Azari et al. (2011), construction related project would ideally require
effective interaction between owners, contract based parties that are integrated, contractors,
designers, suppliers, sub contractors, and so on who are not similar in nature. Hence
collaborative team work is required where a common goal is shared for the completion of the
project successfully. Aligned to the environment of group decision in terms of the problem,
an effective yet simple mechanism is provided by the approach for making absolute
judgements that are comparative in nature conventionally, which may discriminate methods
of risk assessments with clarity.
Inspite of having significance in the realm of project management, risk management is not
approached with as much rigor as the other processes of project management which include
scheduling, scope and so on. The risk management process is inclusive of identification of
risk, assessment of risk and mitigation of risk. The project related risk identification and
assessment are considered to be procedures that are critical for the success of the project
undertaken. A number of techniques of risk assessment pertaining to construction project are
applicable in the industry of construction though the attention paid is insufficient in terms of
a model that can be termed as suitable for the purpose of risk assessment. In order to suitably
address this problem related to decisions, certain approaches of fuzzy TOPSIS have been
developed including an algorithm that is effective for the improvement of effectiveness as
well as quality pertaining to decision making. Good evaluation has been provided by TOPSIS
and is considered to have more appropriateness than other models of MCDM. The project of
construction requires interaction to take place otherwise dissimilar but integrated by
contractual element parties such as designers, owners, suppliers, contractors, sub contractors,
manufacturers and so on. For such reason, construction is known to be a process of
collaborative teamwork having parties who have diversified functions, interests and
objectives ye they share a goal that is common – the successful completion of the undertaken
project. Aligned with the problem of the environment of group decision, the approach
29
undertaken is effective in providing a mechanism that would be simple as well as efficient for
making judgements that are absolute and comparative conventionally. The method that has
been proposed will be successfully able to discriminate among the methods of risk
assessment with adequate clarity. The proposed method is the way of solving the TOPSIS of
the risk assessment model under a fuzzy environment where there a number of decision
makers and a committee to assess the minimum risk model. Once the best model is chosen,
the group of members make decision on which model to follow which would eventually
minimize the risk and uncertainty element from the certain venture. Fuzzy set theory is one of
the commonly practised methods which a fuzzy number A is defined. It is a subset of real line
R and its member function f(a) represents the uncertainty related to a particular transaction of
a process in a business. The normalised matrix method is another famous method of valuating
the risk management aspect to the business and is commonly used. The MCDM ( multi-
criteria decision making) problem have been proposed and improved upon by a number of
scientists and researchers over the year but an ultimate and full proof algorithm has not been
formulated yet and it varies from one company to another depending upon the dynamics and
culture followed by them . The main difference between the risk assessment model and the
proposed method is the method of choosing fuzzy TOPSIS over TOPSIS which deals in
precise numbers. Fuzzy TOPSIS is more flexible in nature and more acceptable to the
scientists.
The degree of satisfaction in each model is different though it deals with the basic three needs
of risk management that is-risk identification, assessment and mitigation. The risk assessment
is the initial step, followed by the assessment of the uncertainty followed by the mitigation of
the risk by eliminating the risks involved through various proposed models and efficiency of
the management. So the risk management of the uncertainty faced by them are completely
different and indigenous to that institution itself.
This study is a special research of the collaborative risk at play in case of construction
projects which inherently and evidently has a lot of risks and variables at play. Eliminating all
the potential threats or chalking of a model which would minimize and mitigate the risks to
an acceptable value is thus of imperative importance. This study thus has been successful in
incorporating a certain aspect associated with SCM which did not form a part of the literature
review studies. Like for example, the global recession of 2009 affected the growing
industries in Dubai severely (Fellows, 2011).But incorporating this model helps to account
for such unforeseen circumstances and helps to minimize the losses. So, this model is a much
30
needed one which will provide a great support and fall back mechanism for the construction
industry.
Case 3: SCM in the United Arab Emirates Construction Industry
As opined by Albaloushi and Skitmore (2008), primary supply chain involves material
delivery that is incorporated into the final products of construction, support chain including
provision of materials and equipments for facilitating construction and the supply chain
related to human resources that includes labour supply. Construction SCM is also known to
be the coordination that takes place in the decision making of inter organisations as well as
the integration of the primary business processes of construction.
A number of industries have used management and collaboration of supply chain in order to
obtain competitive benefit. The adoption of SCM as compared to other industries has been
slower in the construction industry as an effective management strategy. The opinion of the
contractors has been taken into account since they play a significant role in the supply chain
of construction. This exercise is considered to be timely in terms of the energy and interest
that has been devoted for the debate on newer forms of procurement. SCM is aimed towards
the improvement of trust as well as collaboration between the partners of supply chain which
results in the improvement of visibility of inventory and improved velocity of inventory. In
terms of mainstream management, ideas of construction management pertaining to supply
chain have undergone evolution with influences that have corresponding influence from the
theories related to production, strategic procurement and distribution. The extent of the
awareness in the industry pertaining to the integration of supply chain and the related
methods are yet to be established specially in countries like the United Arab Emirates. The
factors that contribute towards the success of SCM include adhering to the procedures of the
organisation while dealing with SCM, approaches of customer needs, technical background
of supply chain, distributors, support received from the higher management, proper
understanding of the environment of SCM and support extended towards the objectives of the
system of production. More awareness of the significance of these factors lead to the success
in implementing of SCM later on. The Supply chain is not only related to single construction
business but it is a multiple business and institution relationship where the entire UAE
construction business is affected as they are interlinked to each other. The main features of
31
CSC are the converging supply chain where all the materials are brought to the site from
different locations and the final product is assembled on site. Other than this a temporary
supply chain of a specified make order chain can also be formulated on specific and rare
occasions. Depending on the stated characteristics few features of SCM in UAE can be
deduced depending upon the priority given to the supply chain or on site construction. Firstly
the management should be well aware of the supply chain a smooth flow of labour and on
site activities should take place. Secondly there should be a well coordinated relationship
between the suppliers and constructors which would directly affect in reducing the cost and
time. The business objective all the all the ongoing construction projects in UAE are not the
same and so the supply chain has been difficult to manage. The UAE construction business
has about 16,000 contractors and 340,000 workers employed making it the single largest
business sector in UAE. The current trend in the construction business in UAE is partnership
between a foreign and a local construction company. Though both the parties agree on the
importance of SCM in the success of their particular project the way they perceive the role of
SCM is different and so because of this conflicting interest of both the parties the role of
SCM in UAE is unlike from the other developed countries.
This case study highlights the salient points that have been discussed in the literature review
section of the research like the State of SCM practices in UAE together with a particular
focus in the construction industry. In order to understand the current state of affairs of the
practices of construction industry this case study plays a pivotal role describing the total
number of personnel and primary stakeholders whose livelihood is intricately linked with this
industry. The practices of SCM although have been long neglected by the practitioners of this
industry have started to infiltrate the industry especially since UAE has been the house of
some extremely high profile and risky projects which demands the best and all methods that
can be applied to speed the process up, ensure flow of materials and yet stay within the
budgetary constraints evaluated at the beginning of the study amidst rising costs all over.
Case 4: A hierarchical framework of barriers to green SCM in the construction sector
As suggested by Balasubramanian (2012), a noteworthy strategy for taking up the challenge
of reduction of carbon emission would be Green SCM (GSCM) and the subsequent enhanced
sustainability due to the potential of improvement of organisational environmental
performance. There have been attempts for measuring the practices related to GSCM such as
implementation, advantages, performance and so on.
32
The highlights of the hierarchical framework of barriers to green SCM in the construction
sector include the extensive identification of the barriers that are existent among the aspects
of economy, environment, technology, society and culture for the adoption of an effective
system of GSCM in the construction sector of the United Arab Emirates. Secondly, a
hierarchical modelling that is scientific of the barriers in order to understand their
significance in the process of decision making. Thirdly, the extent of potential of the adopted
framework with regard to other countries of GCC that include Qatar and Oman who share
similar Gross Domestic Product, e – readiness index and human development index.
There exist certain limitations which are mainly because of the inherent subjectivity of the
approach of ISM. The opinion put forth by the experts in the realm may be considered to be
biased without effective reflection of the setting in the real world. There also is a dearth of
numerical validation of the results thus obtained. The structural equation model which is a
quantitative approach may be applied to evaluate the validity of the ISM model that has been
developed with numerical measurement of the association strength of the barriers.
Balasubramaniam through his research has identified the factors that are eternal to the
establishment which include lack of professionals who are skilled and sustainable, lack of
developers and green suppliers, inadequacy of government support, inadequacy of awareness
of the public as well as demand and uncertainty prevalent in the market. These form the
crucial barriers in the GSCM adoption in the construction sector of the United Arab Emirates.
The internal barriers are reliant on the external ones. Policies are required by the government
to attract right resources. A quantitative based approach such as the Structural Equation
Modelling (SEM) can be handy to test the validity of ISM models. The measurement of
association between the internal and exterior barrier can also be made with this approach.
Future prospects involve amalgamation the ISM and SEM models to form a country wide
integrated framework. Lack of public awareness and appropriate planning by the UAE
government are some of the major problems in implementing the GSCM model successfully.
The external barriers should be overcome by the management itself to clear the path for the
public to embrace this model. The government should device methods and polices to attract
skilled professionals and the general public as a whole. The people should be given the
choice to make sustainable choices and for that the government has to take proper steps for
the planning and execution of the GSCM policies. The GSCM policies are really important
for the construction sector as it reduces carbon emission which results in the betterment of the
environmental result of the construction company. The lacks of green initiative among the
33
stakeholders of the construction companies are a direct result of the failure of the government
to construct and formulate a proper framework for the smooth running and implementation of
the GSCM policies.
Environmental sustainability has been a point of discussion since the 1980’s and today it is
one of the most important considerations in the world over. Using construction materials such
that they can be reused recycled or iteratively used in some way or the other has been the goal
of enginners, architects and project managers all over. Many countries have specific site
waste management plans that has to be submitted prior to the inception of the project, after
which the project gets a go ahead .So green initiatives have to be taken considering the long
time future of the environment of the country. So implementation of GSCM is a possible
solution to the problems posed by environmental issues. The idea is to close all possible
angles when it comes to the environmental issue from foods, to cars, to carry bags and even
construction materials and supply.
Case 5: SCM in Construction: A literature Survey
As explained by Tiwari et al., (2014), supply chain is applied in the construction sector for
the purpose of better coordination and costing. A number of models related to decision
making have been formulated with regard to specific areas of the supply chain in construction
that include risk management and trade off between times – cost. The flow of information,
material and fund is significant in the construction project supply chain hence it is required to
explore the areas of information flow as well as material flow. The feasibility in terms of
SCM application has also been duly worked upon particularly in geographical application in
countries like United Arab Emirates, United Kingdom, New Zealand, Indonesia and so on. It
has, however, been found that there is not too much evidence regarding a complete solution
for the application of construction based SCM. The models that had been developed extend
focus on areas that are specific which do not offer a solution that is comprehensive.
The advantages of SCM in the realm of construction and the related barriers in terms of its
implementation have been looked into. The advantages include the fact that the enterprise is
considered to be a single unit. It is said that SCM has the visibility and permits due
development of a consistent plan pertaining to demand and supply from customers to
suppliers. Thus for somebody involved in planning, will be able to devise a total plan of any
movement via the chain in terms of specific products. This may occur between the different
34
functional groups or between a number of independent companies in the channel of
distribution. This is turn provides services that are considered to be better with inventory
reduction, paperwork reduction, consolidation of distribution centres and transportation cost
reduction. The barriers include inadequate guidance in alliance creation with the partners of
supply chain, failure to formulate alliance monitoring measures, inability of broadening the
vision of supply chain beyond product procurement or distribution for encompassing bigger
processes of the business, inability of integrating internal procedures of the company,
inadequate trust inside as well as outside the company, resistance on the organisational level
to the given concept, inadequate system of integrated information and firm linking electronic
commerce and inadequate set up on the organisational level that may be considered suitable.
The SCM provides the scope for constant improvement, better coordination at each level and
a sense of coherent bonding in the whole process of supply chain. The various aspects of
SCM includes the reduction in the onsite costing which can be done by ensuring a smooth
flow of labour and work between the labours and contractors. The trade off between time and
cost is another important factor. The orderly management of the supply chain will ensure that
the onsite working flow is fast which would eventually reduce the duration of the project
resulting in cost saving. In case of the UK aerospace industry the SCM is well established
unlike construction based companies where exists a chaos between the supply chain and the
production sector. One of the main reasons to incorporate SCM is to maintain and establish a
well oiled integrated system in the supply chain. A sense of bonding and well tuned
understanding is required between the SCM and the onsite contractors for the smooth running
of a project. Various numerical models of SCM have also been formulated but the optimality
of the methods is debatable and it varies for each company or institution. Another important
aspect is the smooth flow of material which is directly related to SCM is a deciding factor in
a project's success.
But on a whole based on the literary survey it can be concluded that the documentation and
extensive research that is required in SCM is still not enough and there is further scope of
improvement because many of the sectors are still untouched and there are many unchartered
territories to be explored.
Chapter 5 – Conclusion and Recommendation
35
5.1 Limitation
While conducting the above review, the studies that were not published or those that were not
published in the English language as first language were not included as part of the study.
There is a possibility that this may have an effect on the review result outcomes since a
significant study may have to be excluded due to the reason given above. The restrictions
from the academic point of view may pose to be limitations for the reviewer in the selection
0of studies without any external aid. There were also scopes of selection based bias as the
selection made by the reviewer would have the influence of his subjective view. The process
of recommendation selection of study and procedure of extracting data to be with minimised
errors need to be done by at least two individuals in order to minimise selection bias which
had not been adhered to. The selected studies were pertaining to the United Arab Emirates
construction sector, hence availability of data was much less as compared to other nations
such as the United Kingdom. Thus the study has been restricted to a limited information
source as details pertaining to other countries were considered to be invalid.
5.2 Recommendations
The following recommendations were made by the reviewer after extensive consideration of
the entire study undertaken:
For researchers and academics in the field of construction and supply chain
management
There is a serious requirement to educate people regarding what exactly is SCM and
its appropriate application in the construction industry of the United Arab Emirates.
Such educational initiatives will help in the exact application of the concept and the
required procedures of SCM. It is believed by the reviewer that if SCM is not
appropriately applied in any sector including construction sector, the entire processes
get hindered and might take the wrong direction or get delayed. More in depth
research would be beneficial to know about the pros and cons of the application of
SCM in the construction industry with emphasis on the market in the United Arab
Emirates. Adequate scope and funds need to be allocated for such research for further
studies that would take place on the similar topic.
SCM has a number of benefits which are befitting for a number of industries, which
among such advantages would be appropriate for the construction industry need to be
36
judged and adequately evaluated. The data available on this aspect pertaining to the
United Arab Emirates is limited. Hence more exploration and studies in this realm is
required.
For practitioners /researchers in field/construction industry/.
For practitioners and project managers
Experts need to be involved in the application of SCM to ensure that the construction
sector of the United Arab Emirates receives adequate benefit from such application.
People who are involved in the different processes that are encompassed in SCM
should have adequate knowledge about its function. The parties involved in such
management should work in collaboration to each other so that their input in the
techniques and procedure add to the benefit drawn from the application of supply
chain.
Even if the process of SCM is adhered to, there are a number of factors that may act
as an obstacle in its effective application. Those need to be done away with to
enhance the output of the construction industry. Constant out of the box thinking
benefits to alter the situation without involving too much drawbacks.
SCM is a process that has been developed upon over the years. It is essential to be
always updated on the latest application and effectively apply it to the construction
industry in order to achieve the best possible results. Every new concept, idea or
technique initially faces resistance as people are wary of change and take time to
accept and apply it. With supply chain involving such huge number of parties from
contractors to designers to clients to suppliers, the evolution of the concept may take
some time to sink it. This does not necessarily mean that the industry will give up on
its application. Once the benefits and application advantages are viewed and
acknowledged by the parties, they too would want it to be appropriately used as it
benefits the entire working of the sector. Though the industry processes are time
pressed, this much time has to be spared for the acceptance of an effective system of
supply chain which would be beneficial for the organisations and the industry on the
whole in the long run.
37
5.3 Result Conclusion
The undertaken study was successful in completing all the aims that were taken into
consideration by providing the review result and making effective recommendation that
would provide more light to the topic and benefit the entire study in the future. The primary
effects of SCM in the construction industry of the United Arab Emirates were successfully
detected. The recommendations made pertaining to the current study extends focus clearly on
the areas that require immediate attention and adequate action to tackle any issues that may
arise. The implementation of the recommendations made will definitely add to the studies of
the future. Education is a primary element in the study undertaken and with building
awareness the study may be improved upon. It can thus be effectively concluded that though
the construction industry of the United Arab Emirates has enhanced with leaps and bounds,
the support facility of an efficient system of SCM is yet to be termed adequate in the nation.
The industry is growing notably and with an efficient SCM method being incorporated, the
sector would be highly facilitated, which has not been the case so far.
5.4 Plans for Dissemination
A research related dissemination is such a step that is carefully sought and thought while
seeking surety regarding the research related findings and their appropriate provision to such
individuals who need to be aware of the results for future application and practice. It is the
wish of the reviewer to share his experiences and view points and also the findings of his
study in order to build more awareness regarding the topic and aid future research work.
The outcomes obtained from this particular study will be shared so that more information on
the topic is made available. The work will also be made available on the internet to be used as
study material by people seeking knowledge in the effect of SCM in the construction industry
of the United Arab Emirates. A copy of the research would also be made available in the
institute library for helping students obtain knowledge in the area. Sharing the research as a
publication and social networking sites would also be a thought that would be taken into
consideration.
5.5 Reflection of Learning
Conducting research and writing a dissertation based on the information obtained might seem
like a simple task, but in reality it can be quite challenging. A huge amount of brain storming
and out of the box thinking is required along with linking of information. At the very initial
38
stage of my course, I had already determined to do adequate research while doing my
dissertation as this would reflect on my curriculum vitae for the rest of my life. Research
work of this stature is not something that is done every day and it required a huge lot of hard
work and immense dedication, not to mention time, energy and sleep deprivation. While
doing this study, my knowledge regarding research methodologies got a boost. The toughest
part of the entire dissertation according to me was to discuss and criticize review studies that
had already been established. There were a number of occasions where I thought I am going
nowhere where a little pep talk from my peers and a slight moral boost from my supervisor
did miracles and got me back on track. I tried to maintain a superior quality of the research to
the best of my ability. I personally am glad that while doing the literature review of the
studies that are existent, I was able to bring forth the view points of different authors
meaningfully with regard to the selected topic. A major setback for me was to not find too
many studies on the selected topic in the regular search engines. Though there were adequate
studies on more popular countries that had global priority, United Arab Emirates known for
its infrastructural supremacy was one nation on which too much information was not
available. Time crunch is something every student faces all through their life. Though there
was a pre set plan to do adequate research, how time flew by and how I had to work on my
dissertation along with the ongoing course is something I know. There were frustrating
moments when the search engine was as blank as me but the sense of achievement that one
relevant study being displayed on screen is something that is beyond description. The
dissertation surely made be better in using search engines with different permutation and
combination of terms. The completion of the study gave me a sense of achievement and I
hope I live up to the expectation of the people who had faith in my ability. Also, I would be
very happy if the study conducted by me has enough relevance not only in terms of grades I
get, but to provide to future researchers adequate information on the topic.
39
40
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