SUPPLY CHAIN INTEGRATION CHALLENGES IN PROJECT PROCUREMENT IN MALAYSIA: IBS CONTRACTORS’ PERSPECTIVE

misbe2011 Tracking Number 104

The Malaysian Construction Industry Master Plan (CIMP 2006-2015) identified the innovative approaches of Industrialised Building Systems (IBS) and its supply chains as having important roles in improving the productivity and quality of construction processes. However, the fragmented scenario in the construction industry leaves the IBS supply chain players with noticeable difficulties in terms of competitiveness and efficiency. Supply chains in IBS involve relationships between many organisations and processes, with the evolution of many specialised roles and embedded relationships. The procurement method is utilised as a mediator tool and as the means of controlling integration between players. Although efforts have been undertaken to enhance the IBS practice in Malaysia, various integration challenges have risen from amongst the IBS players. There is an urgent need to improve the integration of supply chains and a good approach of supply chains integration should be fully established. The purpose of the research is to identify the challenges of IBS supply chain integration with regard to existing project procurements. The methodologies involved a thorough review of literature and the qualitative method of using semi-structured interviews which were conducted amongst IBS contractors in Malaysia. The findings reveal role and responsibility, understanding the knowledge, risk liability, financial and contract matters and attitude and relationship are the challenge factors that hinder the successful integration between the contractor and other related parties. Such issues require much attention in pursuance of greater integration within the supply chains in the Malaysian construction project. The findings of the research will provide valuable theoretical support for integration in order to strengthen the value of supply chains in the Malaysian construction industry. Keywords: Industrialised Building System, Integration, Procurement, Supply Chain