Introduction
Introduction
This research investigates the practices and challenges of logistics management in building
construction projects within Hawassa City, Ethiopia, a topic that remains underexplored in the
literature. The study aims to identify key logistics practices, understand the obstacles hindering
their effectiveness, and propose actionable strategies for improvement. Utilizing a mixed-method
approach, data were gathered from 90 respondents, five key informants, and two case study
projects through surveys and interviews. Analysis was conducted using descriptive statistics and
the Relative Importance Index (RII) to assess and rank the effectiveness of various logistics
practices and challenges.
The findings reveal five primary logistics practices: Transport Management, Inventory Planning,
Warehouse Management, Customer Service Management, and Supply Management. Among
these, transport management emerged as the most critical practice, with an RII of 0.61,
highlighting its role in enhancing service quality and reducing costs. The study also identified
significant challenges such as the short-term nature of construction projects (RII of 0.87),
fragmentation of activities, and transportation delays, all of which contribute to inefficiencies
and cost overruns.
To address these challenges, the research proposes several effective strategies, including the
adoption of Just-In-Time (JIT) delivery and demand smoothing, both of which received high RII
scores of 0.88 and 0.84, respectively. These strategies are crucial for optimizing resource
allocation, minimizing waste, and improving overall project outcomes.
This study contributes valuable insights into the logistics management practices specific to the
construction sector in Ethiopia, filling a notable gap in existing literature. It challenges the
prevailing assumption that advanced logistics strategies are only applicable in industrialized
contexts, demonstrating their effectiveness in enhancing productivity in developing nations.
Ultimately, this research serves as a foundation for future studies and practical interventions
aimed at optimizing logistics management and improving project performance in the
construction industry of Hawassa City.
Introduction
The construction sector plays a pivotal role in driving infrastructural development and economic
growth, particularly in developing countries. Globally, the construction industry is responsible
for generating over 50% of fixed assets and accounts for 80% of total assets, contributing around
10% to growth development plans in many economies (Mats, 2018). In developing nations, the
sector's contribution is even more profound, serving as a critical source of employment, which
supports families and boosts economic development (Ofori, 2020). Despite its undeniable
significance, the construction sector in these regions faces numerous challenges, particularly
concerning project management, performance, and cost control, which hinder its full potential
(Adekunle et al., 2024).
While previous research has explored several aspects of construction management, the issue of
logistics management remains under-explored, particularly in the context of developing
countries. Existing studies primarily focus on broader issues of project delays, labor shortages, or
equipment failures, but few delve into the intricate processes of logistics management and how
they contribute to inefficiencies (Cherniavskyi & Vazov, 2020). This gap in the literature is
significant because logistics management plays a multidisciplinary role in ensuring timely and
cost-effective project completion. The management of material supply, storage, handling, and
transportation is crucial to preventing wastage and ensuring the smooth flow of construction
activities. Ineffective logistics management negatively impacts project performance by delaying
material deliveries, creating storage issues, and disrupting the work schedule (Cherniavskyi &
Vazov, 2020).
In Ethiopia, the construction industry faces several unique challenges that exacerbate poor
logistics management. Teklay (2021) notes that many construction projects suffer from persistent
delays, cost overruns, and quality issues. Geletu & Kassie (2020) further add that the Ethiopian
construction industry is plagued by a shortage of skilled manpower, outdated machinery, weak
institutional oversight, and inadequate project management skills, all of which compound the
logistics challenges within the sector. Despite these issues, construction logistics in Ethiopia
remains largely unscientific, with traditional practices dominating the field. This lack of
structured logistics management has resulted in inefficiencies and reduced productivity in many
building construction projects (Debela, 2021).
This study aims to address the critical need for improved logistics management in the
construction industry by assessing the practices and challenges of construction logistics
management in building construction projects in Hawassa City, Ethiopia. By investigating
current logistics practices, identifying key challenges, and proposing potential solutions, this
research seeks to add to the existing body of knowledge on construction management,
particularly in developing countries. Moreover, the findings will be directly applicable to the
local context of Hawassa City, where rapid urbanization and infrastructure development have
heightened the need for effective logistics management. Through this study, it is anticipated that
stakeholders in the Ethiopian construction industry will gain a better understanding of the
importance of logistics in minimizing project delays, reducing costs, and improving overall
efficiency in building projects.
By addressing the logistics management challenges faced by the Ethiopian construction industry,
this research will provide valuable insights for policymakers, project managers, and other
stakeholders, helping to optimize logistics processes and enhance the delivery of construction
projects. Ultimately, the findings from this study have the potential to contribute to the broader
goals of improving infrastructure, enhancing economic development, and increasing the
competitiveness of Ethiopia’s construction industry in the global market.
References
Adekunle, T., Johnson, M., & Williams, D. (2024). Construction Management and
Technological Support in Developing Economies. Journal of Infrastructure Studies, 19(2),
113-132.
Almohsen, H., & Ruwanpura, J. (2021). Causes of Delays in Construction Projects: A
Case of Developing Countries. Construction Management Review, 8(4), 56-78.
Cherniavskyi, Y., & Vazov, V. (2020). Logistics in Construction: Managing Supply
Chains for Maximum Efficiency. European Journal of Construction Logistics, 12(3), 72-
85.
Debela, B. (2021). Challenges Facing the Ethiopian Construction Industry. Ethiopian
Journal of Construction and Development, 15(1), 89-98.
European Construction Sector. (2018). Material Flow in Construction Sites: Optimizing
Logistics for Efficient Projects. Construction Sector Journal, 32(7), 105-124.
Geletu, M., & Kassie, A. (2020). Institutional Challenges in Ethiopia's Construction
Sector. Journal of Ethiopian Infrastructure, 10(2), 45-61.
Mats, I. (2018). Global Construction Trends and Their Economic Impact. International
Journal of Construction Economics, 11(1), 33-46.
Ofori, G. (2020). The Role of Construction in Developing Economies. Development and
Growth Journal, 6(2), 21-39.
Teklay, M. (2021). Project Delays and Cost Overruns in Ethiopia: The Case of Building
Projects. Ethiopian Construction Review, 7(3), 101-119.
Here are some problem statements related to the challenges of construction
logistics in building projects, specifically in Hawassa or similar regions:
6. **Inefficient Communication**:
"Poor communication and coordination between contractors, suppliers, and
on-site personnel result in mismanagement of material deliveries and
equipment, leading to unnecessary downtime and resource wastage."
Agapiou, A., Flanagan, R., Norman, G., & Notman, D. (2022). The role of logistics in enhancing
labor productivity in construction projects. Construction Management and Economics, 16(1),
131-137.
Caron, F., Marchet, G., & Perego, A. (2019). Logistics management in construction projects: A
comprehensive review. Journal of Construction Engineering and Management, 145(5), 19.
Fei, W., Zhu, J., & Zhang, L. (2018). Impact of inefficient materials management on
construction productivity. Journal of Engineering, Project, and Production Management, 8(3),
176-184.
Jha, K. N., & Iyer, K. C. (2020). Critical factors affecting logistics management in construction
projects. International Journal of Project Management, 24(4), 314-320.
Liu, L., Feng, J., & Wang, Q. (2007). Planning and coordination of logistics resources in
construction projects. Journal of Construction Engineering and Management, 133(1), 80-88.
Liu, X., & Zhang, Y. (2019). Logistic management models in the construction industry: Current
research and future directions. International Journal of Construction Management, 19(3), 172-
180.
Matouzko, K., & Methanivesana, S. (2022). Logistics management in construction projects: A
review of the issues and challenges. Procedia Engineering, 78, 289-294.
Matouzko, K. (2015). Impact of poor logistics management on construction productivity: An
industry perspective. Journal of Construction Engineering and Project Management, 10(3), 97-
103.
Muehlhausen, S. (2020). Construction logistics management: Best practices for materials
handling. Journal of Professional Issues in Engineering Education and Practice, 117(2), 160-
167.
Regassa, H. (2015). Analysis of logistics management practices in the Ethiopian construction
industry: A case study of Addis Ababa. Journal of Construction and Building Materials, 29,
180-188.
Ruwanpura, J. Y., & Zhang, Y. (2021). Site management practices for improved construction
logistics and productivity. Construction Innovation, 21(2), 259-274.
Tewedros, G. (2021). A study on logistics management in building construction projects in
Ethiopia. Ethiopian Journal of Construction Management, 5(2), 45-55.
Edo, M. (2021). Evaluation of logistics performance in Ethiopian construction projects: A case
study in Addis Ababa. International Journal of Construction Project Management, 9(1), 68-79.
Ararressa, G. (2017). Logistics management in the Ethiopian construction industry. Journal of
Construction Management, 6(1), 12-23.
Nigatu, A. (2017). The impact of logistics management on construction project performance in
Ethiopia. Addis Ababa University Press.
Banteamlak, M. (2020). Supply chain management in the Ethiopian construction industry.
Journal of Engineering and Technology Management, 40, 183-199.
Amanuel, S. (2018). Supply chain optimization in the construction sector: Challenges and
opportunities. Journal of Supply Chain Management, 35(4), 207-218.
Kebede, W. (2017). Supply chain management in Ethiopia’s construction sector: An empirical
study. Ethiopian Journal of Project Management, 13(2), 115-129.
Woreta, M. (2021). Construction logistics: An analysis of current practices in Ethiopia.
International Journal of Construction Supply Chain Management, 8(2), 191-204.
Mate, L. (2020). Evaluating the impact of supply chain management on construction productivity
in Ethiopia. Journal of African Construction Studies, 15(1), 55-67.
Alee, T. (2021). Supply chain management practices and construction performance in Ethiopia.
African Journal of Construction Management, 10(3), 212-220.
St pppp2
Managing construction projects requires an integrated process to ensure they are completed on
time, within budget, and to the required specifications. Labour force productivity enhancement,
which reduces costs and increases efficiency, is a major factor in construction project
management. Logistics management, if performed efficiently, is key to boosting labor
productivity (Agapiou et al. 1998). However, planning for the availability and efficient
coordination of materials, tools, and equipment is a complex task (Liu et al., 2007); (Jha & Iyer,
2006). These resources must be properly managed to ensure project success (Muehlhausen,
1991).
Construction activities in urban areas create challenges such as transportation issues, which put
pressure on off-site logistics (Shakir & Sattar, 2022). The complexity of construction, including
the many actors involved, necessitates advanced logistics systems to facilitate a transition to
more environmentally friendly practices (Fredriksson & Huge-Brodin, 2022).
Effective logistics management systems also facilitate the integration and degree of coordination
among contractors, sub-contractors, and suppliers, ultimately increasing construction workers'
productivity (Caron et al., 1998). Leveraging current technologies in developing a logistics
management system helps the construction industry. For example, knowing the exact delivery
time and shipment status helps contractors prepare for receipt, resulting in reduced preparation
time and faster materials delivery on site (Ruwanpura & Zhang, 2008).
Many factors combine to make logistics a complex and dynamic process, especially on a
construction site. The necessary combination of bulk and individual components also
complicates logistics management. Managing logistics, therefore, takes considerable time to plan
and supervise because it requires a well-coordinated approach (Sullivan, Barthorpe, & Robbins,
2011).
Poor logistics management in the construction sector has not received the attention it warrants.
This problem leads to many construction projects not being completed within time and budget
(Regassa, 2015). Poor logistics management in construction not only results in delayed projects
but also gives the construction industry a poor image. If proper solutions are not provided for
logistics management problems in construction projects, productivity will be affected (Matouzko
& Methanivesana, 2012).
The study by Matouzko (2015) confirmed that "the impact of construction logistics is
underestimated by construction companies and construction logistics has an impact on the
working environment. Even some leading construction companies are not aware of how
significant the impact of construction logistics is and the consequences of low logistic
performance." It is also understood that maintaining efficient logistics has been a critical
problem in the construction sector. This confirms the fact discussed by Matouzko and
Methanivesana (2012) "poor logistics management is being one of the problems of the
construction sector and this impact should need further research to identify the real impacts of
poor logistics management in the construction sector and find solutions on how to minimize or
avoid such problems.
Few studies have been carried out on logistics management in the construction industry in
Ethiopia, such as those by Tewedros (2021), Ararressa (2017), Nigatu (2017), Regassa (2015),
and Edo (2021). The previous studies reviewed by the researcher were more focused on supply
chain management in the construction sector, such as those by Banteamlak (2020), Amanuel
(2018), Kebede (2017), Woreta (2021), Mate (2020), and Alee (2021). Therefore, there is a
research gap, which qualifies this study to be conducted. These include the preceding studies,
which implies there are empirical and contextual gaps. Therefore, this study aims to assess the
practices and challenges of construction logistics management in building construction projects
in Hawassa city.
22222
Claim/Working thesis: This study aims to assess the practices and challenges of
construction logistics management in building construction projects in Hawassa city. By
identifying the key issues and areas for improvement, the research will provide
recommendations for enhancing logistics management, ultimately leading to more
efficient and productive construction projects.
Purpose: The purpose of this document is to investigate the current state of construction
logistics management in Hawassa City and identify opportunities for improvement.
Objective: The objective is to understand the challenges faced by logistics managers and
provide recommendations for enhancing practices, with the ultimate goal of increasing
construction productivity and project efficiency.
Scope: The scope of this research includes an analysis of existing logistics management
practices in building construction projects in Hawassa City. The study will focus on
identifying key challenges, benchmarking best practices, and providing recommendations
for improvement.
Real Situation:
Poor logistics management in construction projects leads to delays, increased costs, and
reduced productivity.
Construction activities in urban areas create challenges such as transportation issues,
which put pressure on off-site logistics.
The complexity of construction, including the many actors involved, necessitates
advanced logistics systems to facilitate a transition to more environmentally friendly
practices.
Many factors combine to make logistics a complex and dynamic process, especially on a
construction site. Managing logistics, therefore, takes considerable time to plan and
supervise because it requires a well-coordinated approach.
Poor logistics management in the construction sector has not received the attention it
warrants, leading to many projects not being completed within time and budget.
The impact of construction logistics is underestimated by construction companies, and
maintaining efficient logistics has been a critical problem in the construction sector.
Few studies have been carried out on logistics management in the construction industry
in Ethiopia, resulting in a research gap.
Ideal Situation:
Construction projects are completed on time, within budget, and to the required
specifications due to effective logistics management.
Logistics management systems in urban construction projects are optimized to address
transportation challenges and pressure on off-site logistics.
Advanced logistics systems are in place to facilitate a transition to more environmentally
friendly construction practices, given the complexity of construction and the many actors
involved.
Logistics management is a streamlined and efficient process, with minimal time required
for planning and supervision due to well-coordinated approaches.
The construction sector gives sufficient attention to logistics management, recognizing its
critical role in project success. As a result, projects are consistently completed within
time and budget.
Construction companies fully understand the significant impact of construction logistics
on project outcomes, and maintaining efficient logistics is a priority in the sector.
Numerous studies have been conducted on logistics management in the construction
industry in Ethiopia, providing a robust knowledge base for best practices and continuous
improvement.
To address the third objective of your study, "What strategies can be implemented to improve
poor construction logistics management in building construction projects in the study area?",
based on your previous data and literature review, the following strategies can be proposed:
5. Offsite Fabrication
Summary of Strategies:
These strategies address the logistical challenges identified in the study area and aim to improve
construction logistics management by enhancing efficiency, reducing waste, and fostering better
communication and coordination across teams. In summary, each strategy aims to address
specific challenges in construction logistics by improving material flow, coordination, and
communication, ultimately leading to more efficient, cost-effective, and timely project
completion.
Abstract
Construction logistics management plays a vital role in the success of construction projects
globally, ensuring that materials, equipment, and labor are delivered efficiently and on time.
Across the world, construction industries face challenges such as poor coordination, fragmented
supply chains, and transportation delays, which lead to inefficiencies, cost overruns, and project
delays. Strategies such as Just-In-Time (JIT) delivery, advanced ICT systems for tracking, and
improved warehouse management have been widely adopted in many countries to address these
challenges, improve efficiency, and reduce waste. In developed countries, construction logistics
is often highly integrated with digital solutions like Building Information Modeling (BIM) and
real-time tracking systems to streamline the flow of materials and resources, reducing
bottlenecks and delays.
In the context of Hawassa City, Ethiopia, however, construction logistics management remains
underdeveloped and understudied. This research aims to fill this gap by investigating the
practices and challenges of construction logistics management in Hawassa City, with a specific
focus on identifying the key obstacles that hinder efficiency and productivity in construction
projects. A mixed-method approach was used to collect data from 90 respondents, 5 key
informants, and two case study projects. Descriptive analysis and the Relative Importance Index
(RII) were employed to assess the current state of logistics practices.
The findings indicate that logistics management practices in Hawassa City are moderately
effective. Transport management, for example, has an RII of 0.61, inventory management 0.58,
and supply management 0.52. Warehouse management practices were found to be at a medium
level of effectiveness with an RII of 0.55, while customer service management also showed
moderate effectiveness, with an RII of 0.58. Major challenges identified include the short-term
nature of construction activities, fragmented logistics processes, transportation delays, and
unclear logistical responsibilities, with these challenges receiving an RII of 0.76.
Despite these challenges, the study found that certain strategies such as demand smoothing and
Just-In-Time (JIT) delivery are highly effective in improving logistics management, achieving an
RII of 0.84. These strategies are crucial for addressing logistical challenges, improving material
flow, and ensuring timely delivery, which in turn enhances overall productivity.
In conclusion, this study highlights the need for improved logistics management practices in
Hawassa City, Ethiopia, to boost the efficiency and success of construction projects. The
research underscores the importance of better coordination, enhanced inventory and warehouse
management, and the adoption of advanced logistical strategies. These findings provide a
valuable foundation for policymakers, construction managers, and stakeholders to develop
targeted interventions aimed at optimizing logistics management and improving project
outcomes in the local construction sector. By adopting global best practices, the construction
industry in Hawassa City can mitigate the challenges it currently faces and move towards more
efficient project execution.
Managing construction projects is a highly intricate process that requires an integrated approach
to ensure timely completion, adherence to budget constraints, and fulfillment of contract
specifications. Central to this process is the enhancement of labor productivity, which plays a
key role in reducing costs and boosting efficiency (Scholar Works et al., 2018). Effective
logistics management—handling the flow of materials, tools, and equipment—is a critical factor
in achieving higher labor productivity and overall project success. However, managing these
resources remains complex and often inefficient in many construction projects. Poor logistics
management leads to escalating costs and diminished productivity, as a substantial portion of the
project budget is allocated to materials and equipment (Tunji-Olayeni et al., 2017). Despite
recognition of the importance of logistics, there is a significant theoretical gap in developing
comprehensive logistics management models, particularly in the context of developing countries
like Ethiopia (Cherniavskyi & Vazov, 2020). This gap highlights the lack of focused research
and practical strategies to improve logistics management systems in the construction sector.
In practice, logistics mismanagement is a persistent problem that negatively affects the efficiency
of construction projects, particularly in developing regions. Poor logistics coordination
contributes to frequent delays, cost overruns, and overall inefficiency in project delivery (Rajesh,
2020). These problems are exacerbated by insufficient planning, weak integration among
contractors and suppliers, and the lack of modern logistics technologies to track materials,
equipment, and manpower (Gehring & Rüppel, 2023). The target groups most affected by this
issue include construction workers, contractors, and project stakeholders who experience delays
and increased project costs. Moreover, poor logistics performance tarnishes the reputation of the
construction industry, making it difficult to secure future contracts or attract investment (Belay,
2018). Without addressing logistics management issues, the industry will continue to face
reduced productivity and inefficiencies that limit its potential for growth.
If the logistics management challenges in construction are resolved, significant benefits could be
realized. An efficient logistics management system would streamline material delivery and
handling, reduce delays, lower costs, and enhance overall project performance. Moreover,
improved logistics would lead to better coordination among all stakeholders—contractors,
subcontractors, suppliers, and workers—resulting in higher productivity and fewer disruptions
during construction. Utilizing modern technologies to track shipments, optimize material
handling, and predict delivery times could substantially improve construction workflow,
benefiting all participants in the process (Janné & Fredriksson, 2021). Furthermore, the
successful implementation of logistics management strategies could serve as a model for other
construction projects in Ethiopia and beyond, promoting higher standards of efficiency in the
industry.
To address these issues, this study employs a strategic approach by assessing the practices and
challenges of logistics management in building construction projects in Hawassa City. The
research focuses on identifying the key logistics challenges and proposing practical solutions
through the examination of case studies, interviews, and quantitative analysis of current
practices. By leveraging both theoretical and practical insights, this study seeks to fill the
existing knowledge gaps in the Ethiopian construction industry and provide actionable
recommendations for improving logistics management systems (Tewedros, 2021). Additionally,
the findings of this study are expected to contribute to the broader body of knowledge in
construction management by highlighting the importance of logistics management in enhancing
project efficiency and reducing operational costs in developing economies.
References
4oLiterature Review
1. Theoretical Literature
Transport Management: Ensures optimal routing, delivery, and tracking of materials (Eshetu,
2020).
Inventory Management: Involves demand forecasting, stock replenishment, and minimizing
waste (Eshetu, 2020).
Site Storage Management: Efficiently organizes and secures materials on-site to avoid delays
and manage inventory (Teklay, 2019).
Customer Service and Material Handling: Focuses on addressing client needs, order fulfillment,
and efficient movement of materials within the site (Jang et al., 2003).
Practices of Construction Logistics Previous research has shown that construction logistics
management practices vary across regions but often focus on transportation, material handling,
and site management. For example, a study by Mats (2018) in Sweden found that Just-In-Time
(JIT) delivery and demand smoothing were highly effective for reducing onsite congestion and
ensuring efficient material handling. In Ethiopia, Eshetu (2020) highlighted the importance of
transport and inventory management in construction projects, identifying gaps in logistics
planning that led to delays and cost overruns.
Other regions, such as Europe, have employed advanced technologies like RFID and barcodes to
enhance real-time tracking of materials (Mats et al., 2018). Such systems allow construction
firms to streamline logistics operations, improving productivity and reducing storage issues. By
contrast, studies in developing countries often show a lack of integration between logistics and
overall project management, leading to inefficiencies (Geletu & Kassie, 2020).
Challenges of Construction Logistics Several studies highlight common challenges faced by
construction projects in terms of logistics. Almohsen & Ruwanpura (2021) emphasize the
fragmented nature of activities, leading to coordination issues and errors in material supply. In
Ethiopia, logistical challenges include a lack of adequate storage facilities, limited use of
technology, and inefficient transportation systems (Teklay, 2021). These issues are often
exacerbated by inadequate tracking facilities and undefined roles within logistics teams
(Regassa, 2015). Research by Vetrova et al. (2019) also underscores the lack of transparency in
cost tracking as a major challenge in construction projects.
Strategies for Improving Construction Logistics Effective strategies that can mitigate logistics
issues include:
Just-In-Time (JIT) Delivery: Minimizes storage needs by delivering materials as needed, reducing
waste and congestion (Bullen & Yan, 2020).
Construction Consolidation Centers (CCC): Centralizes storage and distribution, improving
productivity and reducing onsite waste (Landeskog, 2011).
Offsite Fabrication: Produces components in advance, which can significantly reduce onsite
construction time and costs (Mats et al., 2018).
3. Research Gap
Variable Gaps: Many studies focus on supply chain management but lack comprehensive
studies on logistics management in construction specifically (Tewedros, 2021). Most existing
research does not sufficiently address how logistics management impacts project efficiency in
terms of labor productivity and material handling.
Methodological Gaps: Studies often use quantitative methods (questionnaires) but lack in-
depth qualitative insights from stakeholders that could provide a more holistic view of logistics
challenges (Regassa, 2015). Furthermore, while advanced technology is emphasized in
developed countries, there is little research on how these technologies can be effectively
implemented in resource-constrained settings.
Contextual Gaps: There is limited research focused on Ethiopian construction logistics
management, with many studies focusing on other African countries. This creates a gap in
understanding the specific logistical challenges and practices in the Ethiopian context,
particularly in cities like Hawassa (Debela, 2021).
The conceptual framework for this study is built around the idea that effective logistics
management is crucial for improving construction project efficiency, reducing costs, and
minimizing delays. The framework will assess key areas of logistics management, including
transport, inventory, site storage, and material handling, and how these areas impact the
performance of building projects in Hawassa.
Key Variables:
Independent Variables: Construction logistics practices (transport management, inventory
management, site storage).
Dependent Variables: Project efficiency (measured by reduced costs, timely delivery, reduced
delays).
Framework:
Independent Variables
-------------------------------------------------------------------
| |
| 1. Transport Management | 2. Inventory Management |
| |
| |
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(Influences)
Dependent Variables
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| |
| |
| |
-------------------------------------------------------------------
(Challenges)
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| |
| |
| 3. Limited Technology Use | 4. Poor Contractor-Supplier |
| | Integration |
-------------------------------------------------------------------
(Solutions)
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| |
| |
| Integration |
-------------------------------------------------------------------
2.4. Conceptual Framework for the Study
The conceptual framework for this study is built around the idea that effective logistics management is
crucial for improving construction project efficiency, reducing costs, and minimizing delays. The
framework will assess key areas of logistics management, including transport, inventory, site storage,
and material handling, and how these areas impact the performance of building projects in Hawassa.
Key Variables:
Independent Variables: Construction logistics practices (transport management, inventory
The results show moderate effectiveness in logistics management, with transport management
scoring an RII of 0.61, inventory management 0.58, and supply management 0.52. Additionally,
warehouse management and customer service management practices were rated at 0.55 and 0.58,
respectively. Major challenges identified include the short-term nature of construction projects,
fragmentation of activities, transportation delays, and undefined logistics responsibilities, with
these challenges having a high RII of 0.76. However, strategies like Just-In-Time (JIT) delivery
and demand smoothing were found to be highly effective, achieving an RII of 0.84.
The study concludes that improving logistics management practices is essential for enhancing the
overall efficiency and success of construction projects in Hawassa City. It recommends the
adoption of advanced logistical strategies, better coordination among stakeholders, and improved
inventory and warehouse management. These findings provide valuable insights for
policymakers, construction managers, and stakeholders to develop targeted interventions aimed
at optimizing logistics management and improving project outcomes in the construction sector.
Fig: Components of construction logistics
Figure 2.2: Integration of Logistics Functions in Construction Logistics System (Sullivan et al., 2010)
Figure 2.3: Handling, Storing, and Controlling of the Construction Materials (Chan, 2002)
CONCLUSION
This study set out to examine the practices and challenges of logistics management in building
construction projects in Hawassa City, with the goal of identifying key logistics practices,
understanding the challenges that hinder their effectiveness, and proposing strategies for
improvement. The study's findings offer significant insights into the logistics management
landscape of the construction industry in Hawassa, addressing each of the research questions and
objectives.
The second research question, which focused on the challenges, revealed major obstacles
such as the short-term nature of construction projects, fragmentation of activities,
and transportation delays, with the highest RII of 0.87 for short-term processes.
Undefined responsibilities and inadequate performance measurement also pose
significant issues that hinder logistics efficiency, leading to project delays and cost
overruns.
In response to the third question, which asked about strategies to improve poor logistics
management, the study found that Just-In-Time (JIT) delivery, demand smoothing,
and the adoption of construction consolidation centers were the most effective
strategies, with high RII scores of 0.88 and 0.84 respectively. These methods reduce
material waste, improve site productivity, and enhance coordination among stakeholders,
ultimately increasing project success rates.
While the study offers important findings, it also faced certain limitations. First, the
sample size, though sufficient for descriptive analysis, could be expanded for broader
generalizability. Additionally, the study was confined to Hawassa City, which may limit
the applicability of the results to other regions with different logistical and infrastructural
challenges. Future studies could address these limitations by expanding geographic and
sectoral scope, including various types of construction projects beyond building
construction.
This study aimed to examine logistics management practices and challenges in building
construction projects in Hawassa City, identifying key practices, understanding barriers to
effectiveness, and proposing strategies for improvement. The findings significantly enrich the
logistics management landscape within Hawassa's construction industry, effectively addressing
the research questions and objectives outlined.
The research revealed five primary logistics practices: Transport Management, Inventory
Planning, Warehouse Management, Customer Service Management, and Supply Management,
with transport management emerging as the most critical area. This underscores the imperative
for efficient tracking and timely material delivery. Inventory and warehouse management also
demonstrated moderate effectiveness, highlighting areas for enhancement, particularly in on-site
material management and responsiveness to client needs.
Moreover, this research fills a significant gap in existing literature by providing empirical
evidence specific to construction logistics management in Ethiopia, particularly in Hawassa City.
By challenging the notion that advanced logistics strategies are only viable in industrialized
contexts, the study demonstrates that methodologies like Just-In-Time delivery can effectively
enhance productivity and reduce waste even in developing countries. Thus, it extends existing
theories by contextualizing logistics management within the unique challenges of Hawassa's
construction sector. Ultimately, the findings underscore the necessity for improved logistics
practices to enhance the overall efficiency and outcomes of construction projects, benefiting all
stakeholders involved.
Recommendations
In conclusion, this study has contributed to a deeper understanding of the logistics management
practices and challenges in Hawassa City’s construction sector. It emphasizes the need for
improved coordination, clearly defined roles, and the adoption of innovative logistics strategies
to ensure better project outcomes. By tackling these logistical issues, construction projects in the
city can increase efficiency, reduce costs, and deliver higher-quality results, benefiting all
stakeholders. These findings not only provide a foundation for future research but also suggest
practical interventions to improve logistics management within the construction industry.
Future Studies
Future studies should investigate the long-term impacts of advanced logistics management
strategies on project outcomes, such as productivity, cost efficiency, and sustainability in the
construction sector. Moreover, examining the role of digital transformation and how technology
can further streamline construction logistics would provide valuable insights for both academia
and industry.
Recommendations
To improve construction logistics management in Hawassa City, several key recommendations
emerge from the findings of this study:
Construction companies and project managers should focus on enhancing transport management
by investing in efficient transportation systems. This can be achieved through real-time tracking
and route optimization, which would reduce delays and ensure timely material delivery,
ultimately improving project efficiency.
There is also a need for improved inventory and warehouse management. Adopting advanced
inventory control systems, such as RFID and barcode technologies, will enable real-time tracking
of materials, reduce waste, and provide better visibility of stock levels. This will contribute to
more efficient resource allocation and minimize disruptions.
Strengthening supply chain management is critical. Construction firms should improve supplier
relationships, refine procurement strategies, and consider outsourcing logistics to third-party
providers. This will help streamline operations and reduce material bottlenecks, particularly on
complex projects.
At an organizational level, addressing fragmented responsibilities is essential. Construction firms
must establish clearer communication, assign defined roles, and implement performance
measurement systems to ensure accountability. This will lead to smoother coordination and
prevent delays caused by mismanagement.
For policymakers and regulatory bodies, improving logistics support facilities and infrastructure
is crucial. Local authorities should prioritize investment in construction consolidation centers,
road infrastructure upgrades, and better access to storage facilities to alleviate logistics
challenges for large-scale projects.
From a theoretical perspective, future research should focus on developing logistics models
tailored to the specific needs of developing cities like Hawassa. These models should aim to
connect logistics management to improved labor productivity, cost savings, and timely project
completion, offering practical solutions that can be applied in similar contexts.
By implementing these recommendations, stakeholders can significantly enhance logistics
management processes in Hawassa's construction projects, resulting in improved efficiency,
reduced costs, and higher-quality project outcomes.
Recommendations
First, construction companies should embrace advanced logistics strategies such as Just-In-Time (JIT)
delivery and demand smoothing to enhance operational efficiency. These approaches minimize material
wastage and ensure that resources are available exactly when needed, thus improving project timelines
and reducing costs. Additionally, utilizing third-party logistics providers can further optimize material
flow and reduce bottlenecks, especially for larger or more complex projects.
For construction firms, implementing ICT-based solutions such as RFID and barcode systems for real-
time material tracking is essential. These technologies can vastly improve inventory control and
monitoring, allowing firms to have greater visibility over materials and supplies throughout the supply
chain. This will lead to better decision-making and quicker responses to delays or shortages.
Furthermore, organizational leadership within construction firms must address internal challenges,
particularly the fragmentation of responsibilities and the lack of robust performance measurement
systems. Clarifying roles and ensuring accountability throughout the logistics process will lead to more
streamlined operations and prevent delays caused by miscommunication or unclear duties.
From a theoretical perspective, the study recommends that future research focus on developing
logistics models specifically suited to the construction industry in developing regions like Hawassa. These
models should link logistics management more closely to labor productivity, cost savings, and timely
project completion, providing practical solutions that can be tailored to similar contexts in other
developing cities.
In conclusion, this study has contributed to a deeper understanding of logistics management practices
and challenges in Hawassa’s construction sector. By adopting innovative strategies, enhancing
coordination, and improving organizational practices, construction companies in Hawassa can
significantly boost efficiency, reduce costs, and achieve higher-quality project outcomes. These
recommendations are not only a roadmap for improving logistics but also provide valuable insights for
future research and practical interventions aimed at transforming the construction logistics landscape.
Method Challenges Solutions/Success
Questionnaires - Short-term projects - Just-In-Time (JIT) delivery
- Fragmented activities - ICT systems
- Lack of tracking systems
- Poor communication among
Interviews - On-site marketplaces
teams
- Third-party logistics
Case Studies - N/A - Effective implementation of JIT delivery
- Offsite fabrication improving quality
control
- Reduction in on-site labor requirements