SUPPLY CHAIN MANAGEMENT IMPACT ON PROJECT PERFORMANCE IN CONSTRUCTION

Abstract

The construction industry is a major sector that not only delivers essential infrastructure but also ensures safe living environments for communities. This billion-rupee industry is consistently challenged by material shortages, fluctuating costs, logistical disruptions, and labor constraints. In Pakistan, particularly in Karachi, which is the largest urban economic center, there is an urgent need for reliable and efficient supply of materials, manpower, and machinery. This study aims to examine the impact of key supply chain management practices on overall project performance within the construction sector of Karachi. A quantitative research methodology was employed, with data collected from 385 experienced professionals, including project managers, engineers, contractors, and procurement specialists working in prominent construction firms across the city. The data were gathered through structured questionnaires and analyzed using descriptive statistics, correlation analysis, and multiple regression techniques to evaluate the strength and significance of relationships among the identified variables. The results indicate that strategic supplier partnerships exert the most substantial and positive influence on project performance. Additionally, internal lean practices, when effectively integrated with these partnerships, contribute to improved project efficiency and outcomes. The study also identifies several practical challenges that organizations encounter when adopting and implementing lean supply chain practices. This research offers valuable insights for construction professionals, project managers, and decision-makers by emphasizing the importance of developing strong supplier networks, ensuring transparent and timely information sharing, and fostering active client engagement to enhance overall project success.