Supply chain integration challenges in project procurement in Malaysia: The perspective of IBS manufacturers

Industrialised Building System (IBS) involves relationships between various organizations, with the evolution of many specialised roles and embedded relationships. A good supply chain integration practice will lead to good integration among players. However, the fragmentation and adversarial relationship scenario in the IBS Malaysian construction industry leaves supply chain players with noticeable difficulties in terms of competitiveness and efficiency in integration. Although efforts have been undertaken to enhance the IBS practice in Malaysia, establishing integration between IBS players is still a major hindrance due to the lack of supply chain procurement practices. To realise the government s aspiration to transform the Malaysian construction industry into a modern construction system, and to realise the implementation of the IBS Roadmap and Construction Industry Master Plan 2006 2015, a good supply chain integration approach should be fully established. The purpose of this research is to identify the challenges of IBS supply chain integration as regards the existing project procurement they currently undertake. The methodologies are based on a thorough literature review and on the qualitative method using semi-structured interviews, which were conducted among IBS manufacturers in Malaysia. Communication and information, specifically, lack of planning and early involvement, financial matters, knowledge and understanding, risk liability, and attitude and relationship are among the challenge factors that hinder the successful integration among IBS players. These challenge factors require considerable attention in the process of pursuing greater integration within supply chains in the Malaysian construction industry. The findings will assist in pursuing greater integration and collaboration within the supply chains, and improving IBS project delivery in the Malaysian construction industry.