The Impact of IT on Supply Chain Capabilities - Literature review Example

Risks in construction projects are some of the major challenges to supply chains in the industry for the delivery of value that can meet customers’ expectations. Supply chains have different risks and while little literature exists on their effects and possible solutions in the construction industry, Gosling, Naim, and Towil (2013) suggest the role of information technology in understanding the scope of the uncertainty in construction supply chains and possible solutions. According to the authors, an empirical approach that involves data collection and analysis can help in the identification of the risks and roles of information technology in statistical methods is instrumental (Gosling, Naim, and Towil 2013). Consequently, the implementation of information technology in construction supply chains could help in predicting and managing challenges for effectiveness and efficiency in service delivery. In addition, information technology, through the use of Automated Materials Locating and Tracing Technology, helps construction companies to overcome uncertainty challenges that arise from visibility problems (Young et al. 2013, p. 7, 8). Meng, Sun, and Jones’ proposed model for managing supply chain relationships in the construction industry further supports the role of information technology in constructions supply chains (2011). The authors’ Maturity Model empowers construction companies to effective management that is associated with better performance, greater opportunities, and minimizing conflicts. Implementing the model for these benefits however requires complex data analysis that identifies the need for information technology.

The construction industry also identifies the need for collaboration among stakeholders, especially between contractors and sub-contractors, for successful projects, and the application of such technologies as the Construction Collaborative Technologies play an important role (Timothy and Kathryin 2013). Challenges also exist, in the industry, on the relationship between buyers and suppliers, a factor that has direct impacts on supplies delivery and may spill over to developed products. Bemelmans, Voordijk, Vos, and Butter explain the existence of a gap that stakeholders can bridge to strengthen the relationship together with existing motivational factors (2012). Application of technologies for data collection and analysis, such as in customer relationship management, can bridge this gap for manufacturer utility and the satisfaction can be transferred to the final consumer (Li, Ford, Zhai and Xu 2012). Bryan, Sinkovics, and Kim (2010) support the technology-based approach to strengthening relationships in supply chains for better performance in the construction industry.

Aims and objectives

The supply chain plays a significant role in operations and derivable utility in the construction industry. Application of information technology in the industry’s technology has potential benefits such as strengthened relationships, tracking of supplies, and forecasting of uncertainties for better risk management. Empirical studies can therefore be conducted on contemporary information technologies in the industry with the following aims and objectives.

• To ascertain the benefits of information technology in the construction industry’s supply chains
• To determine the level of significance of comparative technologies to a supply chain benefit in the construction industry
• To explore additional benefits of information technology in the construction industry’s supply chains