Horizontal integration that is common place in the construction
industry tends to fragment the supply chain, resulting in an
unstable production environment occasioned by high
unpredictability, much rework, low profits and eventual low level
of value creation in the process. Therefore, an increased level of
integration of interfaces and processes has been canvassed. The
purpose of supply chain management is to achieve the expected
increased level of integration of the whole supply chain. Supply
chain management has long been advocated as a means of improving
the performance of supply chains in construction. This research
study reports on an investigation into the impact of supply chain
management on value creation in the South African construction
industry. The research discovered that collaborative working is
already in the industry and contractors consider supply chain
management important for project success.Here construction supply
chains were approached from the relationship view point.
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