Challenges in the Integration of E-Procurement Procedures into Construction Supply Chains

Abstract

The growing interest in digitalization signals a need for technology-oriented supply chain operations in the construction industry. Electronic procurement (e-procurement) aims to convert traditional procurement approaches into web-based/online platforms. Even though e-procurement is an effective tool that may improve supply chain management, the extent of e-procurement implementation has been slow to date. This study investigates the barriers that hinder e-procurement implementation in construction supply chains with the aim of prioritizing solutions to the identified barriers relative to time, cost, quality, and construction owner satisfaction. A comprehensive literature survey was performed, and a focus group discussion was organized for the purpose of the study, which resulted in the identification of 28 barriers. Then, a total of 131 construction practitioners were contacted to evaluate the barriers through a questionnaire survey. The responses were analyzed using the fuzzy Technique for Order Preference by Similarities to Ideal Solution (fuzzy TOPSIS) for prioritization. Finally, 15 semi-structured interviews were conducted to gain a deeper insight into the transformation process from the conventional procurement route to the e-procurement solution. Findings highlight that issues related to unexpected order cancellations, large variations in material costs, and the uncertain nature of the industry that requires a large number of changes are ranked as the most significant barriers. Given the highly competitive environment and the high demand for advanced technologies in the construction industry, a new paradigm can enhance the efficiency of supply chain operations. Exploring and eliminating the potential difficulties of adopting e-procurement in the procurement process may be a good start. Overall, this research is expected to facilitate the transformation of the procurement process by addressing the critical barriers identified by practitioners.

Keywords

• supply chain performance
• online procurement
• digitalization
• construction industry
• fuzzy TOPSIS