SCM research in construction has served to improve efficiency and effectiveness of construction by extending the traditional, functional and inter-organisational activities. Successful application of SCM, as brought out by one research team, is a crucial element to strengthening the competitive edge of companies in the ever prevailing competitive environment. Thus, SCM needs to be implemented not only at management level but also at the elementary level of site production. SCM is a relatively new concept to construction and, with the industry still grappling with it, the majority of researchers have been more inclined to focus on establishing the contribution that SCM has at management level only. Researchers have linked lean construction and partnering to the SCM concept in an effort to develop solutions to the problems plaguing the construction industry. Partnering is often referred to as a precursor of SCM (Bankvall et al., 2010: 385). This, in part, relates to collaboration among organisations. Researchers thus define partnering as a long-term cooperation between two or more organisations with the objective of optimising the efficacy of respective resources and enhancing business competitiveness. Partnering is said to foster relationships based on trust and dedication to a common goal. At the turn of the century,
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researchers developed a model that identified the following five main phases in purchase partnering which have resonated in the construction industry:
• Internal alignment;
• Identify potential partners; • Screen and select;
• Establish relationships; and • Evaluate relationship.
As brought out in the review of related literature, there are striking similarities between partnerships and collaboration which reinforce the adaptation of SCM in construction practices. On the surface, partnering seems to mirror SCM, however, researchers warn against the tendency to use these terms interchangeably as they insist SCM is broader than partnering. Nevertheless, its contribution to the adaptation of SCM into the construction industry cannot be overlooked.
SCM is an integral aspect of lean construction. Lean construction, a concept adopted from the Toyota Production System, is reportedly a means to improve CSC (Eriksson, 2010: 394). Lean construction is relatively undeveloped and, in an effort to move away from an overly theoretical model, Eriksson (2010: 395) proposed six core elements upon which this concept is based:
• Waste reduction;
• Process on production planning and control; • End customer focus;
• Continuous improvements; • Cooperative relationships; and • Systems perspective.
These elements cover a wide range of aspects from housekeeping on site to large scope contracts. Eriksson (2010: 401) concluded his findings concerning lean construction by pointing to the fact that, when compared with partnering, the concept of lean construction was said to be a less favoured concept among participants of the construction industry.
SCM integration into the construction industry is still nowhere near providing an all-in-one model that every construction project can implement on site. There is also no “quick fix” to integrating SCM in construction. Besides references to the Latham (1994) and Egan (1998) reports, research studies presented by Vrijhoef and Koskela (2000) have formed the basis
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upon which SC research in construction is based. It is therefore significant for this research project to bring to the fore these researchers’ knowledge of SCM in construction.
The main barrier to SCM appears to be slow adoption by the construction industry is a lack of comprehensive translation and understanding of the concept. Hence the poor performance of SC in construction is founded on the belief that the theoretical models and philosophies are inappropriate for the construction industry. Moreover, some of the blame has been placed on the industry’s poor ability to implement practices that might work well in other sectors (Bankval et al., 2010: 386).
CP has surfaced as a result of shortcomings experienced when implementing SCM in construction. It seeks to bring into focus relational working as a means of improving contracting by introducing systems and strategies during construction. Collaboration, as an extension of SCM, has the objective of integrating processes, procedures, communications, human interaction and modes of information sharing and is thus a holistic concept.
The challenges that construction face are somewhat unique to the industry as most relationships between participants are contractual and project based. Effective collaboration enhances project performance by carefully considering organisational issues pertaining to trust, communication, stakeholder engagement, technologies and decision-making processes. Undisputedly, the troubles that plague the industry have been partly due to poor collaboration (in systems) but, with the change in technologies and ICT systems, this concept still remains a must in combating poor project delivery.
2.8. SUMMARY
In the review of the related literature in this chapter, the concept of SCM and CP were outlined and discussed. The chapter outlined the evolution of SCM as well as its application in construction. The barriers and enablers of collaboration assisted in providing a balanced view of how to address organisational issues experienced by stakeholders in the industry. The next chapter reviews case studies on collaboration in Australia and the UK.
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CHAPTER THREE
CP CASES FROM AUSTRALIA AND THE UNITED KINGDOM
3.1. INTRODUCTION
This chapter offers a theoretical evaluation and conceptual take on collaboration in construction as practiced in Australia and the UK. This chapter uncovers how CP is used in advanced countries. By the review of case studies in Australia and the UK, the Chapter provides a discussion on the application of collaboration in the said context.