Sustainable Supply Chain Management Strategies and Construction Cost Optimization for Project Delivery in South-South Nigeria

Abstract: The construction industry faces challenges like unsustainable supply chain practices and rising project costs, hindering environmental sustainability and economic efficiency. Despite global advancements, inefficiencies like resource waste and resistance to change exacerbate cost overruns and environmental degradation. This study investigated on Sustainable Supply Chain Management (SSCM) strategies and their influence on construction cost optimization for project delivery in South-South Nigeria. The study focuses on the level of adoption of SSCM strategies, barriers inhibiting the adoption of SSCM, construction cost optimization strategies and  the relationship between the level of adoption of SSCM strategies and construction cost optimization. The survey data was obtained through a structured multiple choice questionnaire administered to 495 construction professionals in South-South, Nigeria. Data collected were analyzed using mean item score, Kruskal-Wallis H-Test, and Ordinal regression. The findings of the study revealed the most significant factors for the adoption SSCM are: corporate social responsibility, training on SSCM, information sharing, managers’ commitment, sustainable construction, and clean program/production are the top five ranked in descending other. The study further shows that resistance to change, lack of financial incentives, limited sharing of information and knowledge, lack of coordination, limited teamwork, and lack of cooperation and communication among stakeholders are the most significant barriers inhibiting the adoption of SSCM. The study also revealed that construction cost optimization primarily focuses on value engineering, the use of pre-fabricated and modular components, project reviews, project scheduling, and multi-disciplinary team collaboration in that other. The study's revealed a positive relationship between SSCM and cost optimization strategies, with a Nagelkerke R² value of 0.981 suggesting a substantial portion of cost optimization variance can be attributed to how well the SSCM is adopted. The study concluded that the adoption of SSCM significantly leads to cost reduction. The study recommends an increase in awareness campaigns through workshops and seminars on the advantages of SSCM.

Sustainable, Supply Chain Management, Construction, Cost Optimization, Project

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