Supply chain management in building and construction industry: case of Australian residential sector

In the recent literature the effective management of the supply chain has been identified as of significant importance to achieving and sustaining a competitive advantage for industrial companies. Concepts and definitions of supply chain management (SCM) diverge from logistics, management of distribution channels from suppliers to end users, to good relationship with business partners. In building and construction industry (BCI) SCM deals with management of materials and information and financial flows between contractors, designers and clients. Based on a recent research project conducted in the Australian BCI residential sector organisations, this paper highlights an understanding and application of SCM mainly from the project manager point of view. The paper indicates the importance of having good relationship with suppliers in terms of developed partnership, trust and bonding in order to remain competitive.