Is the construction industry aware of supply chain management? The Portuguese contractors’ perspective

The purpose of this paper is to evaluate the understanding and behaviour of construction companies in relation to supply chain management (SCM) and how those relationships can impact the adoption of the SCM concept.

This paper adopted a descriptive study method based on a cross-section survey. A literature review and focus group interviews were used to design the survey questionnaire. The focus group interviews were also used to discuss the results of the survey and draw conclusions.

The results show that the global awareness level of SCM and the relationships level among the entities in the Portuguese construction industry are low, which is in alignment with previous research work. These results also show that SCM in the construction industry is a complex task due to the fact that the relationships between the entities are different, and also often contractors and subcontractors change roles from project-to-project.

The limited number of valid responses in the research, particularly when considering categories based on the size of the contractors, can be considered a major limitation of this research, which might have reduced the quality of the statistic tests performed.

Construction companies should foster a proper understanding of “the language” and core concepts underpinning SCM practices and should pay particular attention to a systemic and network perspective, avoiding the traditional focus on the management of dyadic relationships. Accordingly, care must be taken to avoid the “simple and direct” transfer of the SCM concept to the construction sector.

This paper provides contributions to understanding the awareness of SCM within the construction industry and to the field of SCM, confirming that it is the specifics, and not the context, of the construction sector that are not well-adapted to the assumptions underpinning SCM and related concepts.