Supply Chain Strategy for Contractor in Adopting Industrialised Building System (IBS)

Industrialised Building System (IBS) is the term coined by the industry and government in Malaysia to represent the adoption of construction industrialisation and the use of prefabrication in building construction. Despite acknowledging its benefits, the construction industry is still not rapidly embracing IBS. Fragmented and disconnected construction supply chains are the leading causes of limited uptake to IBS. The purpose of the paper is to examine supply chain strategy for contractors in adopting IBS. The paper uses case study as research method. The analysis is based primarily on cross- case analysis and pattern matching technique. The paper observes that IBS supply chain requires close control of materials and resource management to ensure continuity and timely delivery of construction components at site. The supply chain is managed in a manner that allows the contractors full control of the process with the intention to improve efficiencies and competitiveness. The case companies involve heavily in the production of IBS components and practices closed supply chain system. To manage the supply chain, contractors need to adopt partnering initiatives and embrace open collaborative environment. In addition, Information Technology (IT) can be useful tool to support collaborative supply chain and improve information flows.