Survey-Based Case Study of Supply Chain Management (SCM) in Construction Industries

Abstract

The construction industry is another sector that substantially contributes to economic growth and is also a very fragmented industry that is vulnerable to material management inefficiencies. Supply Chain Management (SCM) provides the systematic approaches to eliminate delays, wastage and costs, but it is not widely applied in the construction companies of regions in India. This paper gives survey-based case study research of construction firms in Maharashtra with special consideration given to Bindra Steel Pvt. Ltd. The research uses various inventory control methods, including ABC, HML, FSN, VED, SDE analysis, and codification system to measure procurement, storage, consumption and criticality of construction materials. Findings indicate that material management constitutes about 75 percent of overall cost of production and as such, it is the most substantial area that could be considered in reduction of costs. It is also revealed that scientific codification enhances traceability and decreases retrieval delays, and inventory classifications point out the important items that need to be carefully monitored. The research concludes that with structured SCM practices, cost efficiency, accuracy of forecasting and competitiveness of construction firms can be improved. The suggested recommendations are the implementation of digital inventory solutions, education, and active purchases programs, specific to the regional construction industry.