The Council of Supply Chain Management Professionals (CSCMP) defines Logistics as that part of supply chain management that plans, creates and monitors the efficient, cost-effective flow and storage of goods, semi-finished items and manufactured products as well as related information between the point of origin and the point of consumption in order to meet customers’ requirements and satisfaction [1]. Logistics encompasses all of the information and material flows throughout an organization. It includes everything from the movement of a product or from a service that needs to be rendered, through to the management of incoming raw materials, production, the storing of finished goods, its delivery to the customer and after-sales service [2]. A practical and simple way to look at logistics, as quoted from The Handbook of Technology Management, “is as having the right item in the right quantity at the right time at the right place for the right price in the right condition to the right customer”. Logistics operations include manufacturing, purchasing, distribution, the managing of inventories, packaging, and even customer services [3]. The brain behind the outsourcing of logistics services is to: reduce operating costs, meet demand fluctuations and reduce capital investment. The general problems that arise in corporate logistics include delayed and inaccurate information, incomplete services, slow and inefficient operations, and a high product damage rate. The possible consequences are an inability to provide inter-linked services, high operating costs, a rate of high inaccuracy, and a lack of flexibility in responding to changing demand requirements [3].

Logistics management is a detailed process of organizing and implementing an operation, and that detailed process is the flow of work from the beginning to the end, in order to fulfill customer satisfaction and expectations as well as other partners involved. Logistics management consists of the process of planning, implementing and controlling the efficient flow of raw-materials, work-in-progress and finished goods and related information-from point of origin to point of consumption; with a view to providing satisfaction to the customer [4].

Logistics management manages resources that can range from tangible goods (such as materials, equipment and supplies). In so doing, logistics management deals with integrating the flow of information and its management tools, materials handling, production packaging, inventory, transportation, warehousing and sometimes security [5]. The concept of logistics is based on a total system view of the multitude of functions in movement of materials and goods from sources of supply to users. Accordingly, it forces management to think in terms of managing the total system; rather than just one part of it [4].

Logistics in construction is a multidisciplinary process which makes sure things are done at the right time, cost and quality, as well as material supply and handling, schedule control, site infrastructure and equipment location, site physical flow management, traffic arrangements on and around the construction site, and information management related to all physical and services flow. Completing construction projects in a timely manner comes with their numerous constrains which requires the skillful integration of many aspects, and one of these aspects which play a crucial role in ensuring that construction projects are completed successfully, is logistics management which also leads to productivity. Construction project sites are impacted by several factors that affect the efficiency of a workforce by reducing their overall productivity. Such a loss of efficiency interferes with the performance of an entire project, and reduces management’s chances of meeting project quality, budget, and time objectives. Conversely, by increasing overall productivity through improving logistics management, construction companies would reap many more benefits from their projects [5].

Industry logistics traditionally involve either the contractor going to the supplier to pick up materials or materials been delivered to site. These deliveries occur on an adhoc basis to various locations whether locally and internationally [6]. Only limited management skills and information exchange are commonly employed, the techniques for improving construction logistics include implementing strategic logistics planning across the full supply chain, utilizing consolidation centers, just-in-time delivery to the workplace and adding a logistics specialist to construction project teams [6].

These are mutually inclusive techniques, and other countries have found that construction consolidation centers can reduce 50% of vehicle movements and 35% of material waste. Systematic application of supply chain management techniques will address most critical logistics issues and thereby reduce construction costs and improve industry performance [6].

Several parallel and independently existing suppliers cross on sites and interact making higher-level planning and coordination a difficult task [7]. A systematic approach to construction logistics has led to the emergence of a dedicated logistics contractor who assumes the single point responsibility to integrate all the essential support services associated with construction project [8]. It highlights the benefits of good logistics as well as the use of consolidation centers on projects and also shows how reduction in transport movements, less money tied up in stock, less waste, and the more efficient use of skilled craftsmen will reduce the cost of projects, reduce construction time, improve quality, reduce risks to health and safety, improve environmental performance and generally improve the image of the industry [8]. Logistics experts offer tried-and-tested ways of achieving these benefits through integrated project teams and supply chains, and the increased adoption of information technology [8].

There are different approaches to analyze logistics system. The choice of any approach depends on the kind of analysis that is to be carried out. The four commonly used approaches are materials management versus physical distribution, cost centers, nodes versus links and logistics channels [9]. The best approach to analyze the long run system design of a company’s logistics system is nodes versus links. Nodes are spatial points where materials are stored or processed while links are the transportation networks that connect the nodes together [9]. The most appropriate concept applicable to construction logistics on the basis of this research work is nodes versus links because it is concerned with the transportation of materials from supplier/manufacturer’s warehouse to the construction site storage and movement of materials within the site from the storage to the point of use. This concept was similarly applied for reverse logistics modeling in construction by [10]. Figure 1 below shows a simple logistics system network that facilitates the delivery of materials to the construction site and subsequent shipment of materials from the storage to the construction area, representing the nodes versus links model of logistics system [11].

A study conducted by Waterz 2003, there are many functions involved in any organization, but there is a function which is called logistics which has the responsibility of the flowing of materials from the supplier into the organization, through the operations within the organization [20]. In the same study Waterz 2003, also stated that almost every organization move material from one point to another point, this operation is the main factor which is the reason of value creation in any organization, and then operations for the conversion of raw material into finished goods and then after finished goods are produced, then those finished goods are delivered to the customers [20]. So materials may come into the organization from the supplier and on the other hand the material may also be sent out of the organization to the customers.

Managing construction projects requires an integrated process to ensure that they are completed on time, within budget, and according to the contract specifications. Labor force productivity enhancement, which typically reduces costs and increases productivity, requires key activities for a successful and efficient logistics management. Table 1 below therefore provides a brief account of key activities involved in logistics management and also tries to describe or explain briefly these various key activities which form the basic foundation in the process of logistics management [4].

Logistics management is a subset of the larger supply chain management. Supply chain management plans, implements and controls the efficient flow of storage, goods, services and related information from the point of origin to the point of consumption. This is done for the purpose of meeting the requirements of customers [5].

A study conducted by Calipner, 2007 [21] sometimes there are other materials while transporting including pallets, delivery boxes, cable reels and containers. And all these are returned back to the supplier as these are reusable. While there are other materials, which are not reusable, but they are given back to the supplier, for the reason of the recycling including metals, glass, papers, plastics and oils. And then there are materials which are not either brought back for reuse or

recycling but for safe disposal which includes dangerous chemicals. And such activities which bring back the materials to the organization are known to be the management of reverse logistics or reverse distribution.

According to Bowersox et al., 2007, the creation of value in the supply chain of any organization is due to logistics management in different ways like management of the services to the customer, orders stocks, the shipment and transport services, storing, the handling, information, forecasting and procurement, cross docking, direct delivery, warehousing and distribution [22]. According to Zhang 2005 logistics management is also stated that it’s not only the physical flow of products but also the flow of the information, which is the reason that the whole supply chain linkage [23].

Logisticians focus on inventory management, purchasing, transportation, warehousing, consultation and the organization and mapping of these processes.

There are four main types of logistics management, each emphasizing a different aspect of the supply process [5]. These are elaborated below:

Figure 3 below shows the various links and points of distribution in a logistics management network system.

Logistics management is significant for the following reasons [4].

· Cost Reduction and Profit Maximization;

· Logistics management results in cost reduction and profit maximization; this is primarily due to improved material handling, Safety, speedy and economical transportation, optimum number and convenient location of warehouses.

· Efficient Flow of Manufacturing Operations;

· Inbound logistics helps in the efficient flow of manufacturing operations, due to on-time delivery of materials, proper utilization of materials and semi-finished goods in the production process;

· Competitive Edge;

· Logistics provide, maintain and sharpen the competitive edge of an enterprise by increasing sales through providing better customer service, arranging for rapid and reliable delivery and also avoiding errors in order processing;

· Effective Communication System;

· Logistics management helps in developing effective communication system for continuous interface with suppliers and rapid response to customer enquiries;

· Sound Inventory Management.

This is a by-product of logistics management. A major headache of production management and financial management is how to ensure effective sound inventory management but such headache is cured by logistics management.

Logistics management therefore helps to drive up revenue, improves customer service, and adds to the company’s good reputation and brand, which in turn creates new and more business. With more visibility into the supply chain there is the opportunity to save costs in operations, by controlling inbound funds, keeping inventory at the right level and organizing the reverse flow of goods.

The questionnaire structure of this survey was divided into three parts. The first section aims to collect the background information or the profile analysis of the respondents, e.g. their educational qualification, work experience and professional background. The second section seeks to identify and evaluate the possible factors that affect logistics management in the construction industry. The third section also seek to ascertain the current practices of inventory management and the effect on logistics management envisage by construction personnel’s and stake holders.

The survey questionnaire was designed and formulated by looking through the relevant literatures in the area of logistics management in construction industry and then a pilot survey or study was conducted. The pilot survey responses formed the basis of modifying the questionnaire for the subsequent full-scale survey and therefore new inputs raised by the respondents were incorporated in in the final full scale survey questionnaire.

Out of the 187 respondents that took part in the survey, 22 respondents feedback were incomplete so 165 member respondents results were analyzed representing 88.2% response rate. The survey results were analyzed, displayed and interpreted in the form of tables, bar charts, column chart and pie chart.

Table 2 and Figure 4 describe the distribution of respondents based on their area of specialization, profession or position. 7.3% of the respondents are Project Managers, 10.3% are Project Coordinators, 18.2% are Foremen, 15.8% are Site Managers/Officers, 21.2% are Logistics Managers, 13.9% are Inventory Managers, 8.5% are Laborers and 4.8% of the remaining respondents represent other positions. It can therefore be deduced that majority of the Respondents that took part in the research survey are in the portfolio as Logistics Managers representing 21.2% of the total respondents. In accordance with this, it can be inferred that,

majority of the respondents who took part in the survey therefore have ample knowledge in the field of logistics management in the construction industry which make the respondents reliable and credible sources of information which is required to satisfy the research goal.

According to Table 3 and Figure 5, 8.5% of the respondents have less than 1 year working experience, 24.2% also have from 1 to 3 years working experience, 19.4% also have more than 3 to 5 years working experience, 30.9% also have more than 5 to 10 years working experience, 10.9% also have more than 10 to 15 years working experience and 6.1% of the total respondents also have over 15 years working experience. It can therefore be deduced that majority of the respondents fall within more than 5 to 10 years working experience, representing 30.9% of the total respondents.

From Table 4 and Figure 6, 14.5% of the respondents have attain PHD qualification, 35.8% of the respondents have Master’s Degree qualification, 29.1% also have Bachelor Degree qualification and the remaining 20.6% represent Other

qualifications. It can therefore be inferred from the table and figure above that a total majority of the respondents have attain the requisite qualification to be in the construction industry representing 79.4% of the entire respondents. This therefore revealed that the majority of the respondents have the needed qualification and therefore have ample knowledge in contributing to success of the survey.

According to Table 5 and Figure 7, 13.9% of the respondents fall within the ages of 20 - 29 years, 46.1% of the respondents also fall within the ages of 30 - 39

years, 28.5% of the respondents is also within the ages of 40 - 49 years and 11.5% of the respondents are within the age range of 50 - 59 years. It can therefore be deduced that majority of the Respondents fall within 30 - 39 year age group representing 46.1% which form more than one-third of the total respondents.

In accordance with the survey conducted, the questionnaire was also design for the respondents to identify, evaluate and also share their opinions on some of the possible factors which affect logistics management in the industry.

The results of this were analyzed and presented in the form of a bar chart. Table 6 and Figure 8 below illustrates the analyzed results of the possible factors or situations that affect logistics management in the industry, as enumerated by the respondents.

From Table 6 and Figure 8, majority of the respondents were of the assertion that failure to adopt the new and emerging technological approach as well as integrating it into the logistics management system is the most possible factor affecting logistics management which is represented by 36.4%. 22.4% of the respondents also reported on lack of proper communication and the flow of information between parties that are involved, 15.8% of the respondents also attributed Ineffective inventory management as a factor affecting logistics management. 12.7% also raised issues pertaining to the Ordering process used in logistics management. 8.5% also attributed the Planning, Scheduling and Procurement process as a factor which also affect logistics management. 4.2% represent other factors that were believed to be affecting logistics management as stated by

the respondents. This result therefore revealed that the failure in adoption of new and emerging technological approach as well as integrating it into the logistics management system is the most contributing factor affecting logistics management in the construction industry.

With regards to the survey conducted, findings from the study therefore accentuate that the integration and incorporation of new and emerging Technology in logistics management in the construction industry goes a long way to have impact or influence on all the other factors enumerated in the analysis. Technology facilitates communication and the flow of information among the various personnel’s and stakeholders involved in logistics management and its supply chain. Information technology integration enhances quality, reduces time and costs, enhances competitiveness and generates future growth. Information technology sharing also aids in swift and smooth accomplishment of inventories aiding in fast decision making. Technology also promotes and facilitates more frequently the Planning, Scheduling, Procurement and Ordering processes which contribute to effective and timely supply logistics in the construction industry. Technology also helps managers in redesigning of strategy to add more value to resources when the need arises.

The most common reliability coefficient is the Cronbach’s alpha which estimates internal consistency by determining how all variables (factors) on a test relate to all other items and to the total test-internal coherence of data. The reliability is expressed as a coefficient between 0 and 1.00. The higher the coefficient, the more reliable is the test. In this study to ensure the reliability, the Cronbach’s Alpha was used. The Cronbach Alpha value is widely used to verify the reliability of the variables. Therefore, Cronbach Alpha was used to test the reliability of the proposed study results. This is shown in Table 7 below.

The significance was 5% (0.05). The findings indicated that Technology had a reliability Cronbach’s value or coefficient of 0.897, Communication and the flow of Information had a Cronbach’s Alpha value of 0.843, Inventory Management showed an Alpha value of 0.752, Ordering Process also had an Alpha value of

0.729, Planning, Secluding and Procurement process as well had an Alpha value of 0.685 and the remaining other factors also collectively had a reliability Cronbach’s Alpha value or coefficient of 0.656. This therefore indicates that all variables listed showed that, the value of Cronbach’s Alpha are all above the suggested Alpha value or coefficient of 0.6, and this therefore implies that the study results were reliable. On the basis of reliability test it was supposed that the scales used in this study is reliable to capture the independent variables. The significant P-values of the variables under study were satisfying the required threshold where Technology had a significant value (p-value) of 0.0015, Communication and the flow of Information showed a significant value of 0.0085, Inventory Management had a significant value of 0.0103, Ordering Process also had a significant value of 0.0156, Planning, Secluding and Procurement process also had a significant value of 0.0189 and the remaining other factors also collectively had a significant value of 0.0246.These significant values of the variables are less than 0.05 so in such a case, it accentuates and also confirms to the reliability of the study results.

In order to ascertain the current inventory practices that are utilized and its effect on logistics management, respondents were also made to respond to the inventory techniques that are been used at their places of work. In view of this, the respondents were asked to indicate how often they run out of inventory in the course of their work and Figure 9 below display the analyzed results from the respondents.

The majority of the respondents indicated that, they experienced out of stock inventory Monthly representing 47% of the total respondents, 21% of them also indicated of experiencing out of stock inventory Quarterly, 14% also experience it Weekly, 10% as well experience it Yearly and 8% of the respondents also accepted of running out of stock on daily basis.

The respondents were further presented with statements concerning the overall satisfactory reaction pertaining to their current inventory practices to describe how they feel about it. In this case, they were required to tick the statement that best described their opinion. They were to rate the statements on a 5 point Likert scale where 1 = Highly Satisfied; 2 = Satisfied; 3 = Neutral; 4 = Dissatisfied; 5 = Strongly Dissatisfied. According to the analysis of findings, the respondents indicated that in general the adequacy of inventory management system was Dissatisfied representing 63.8% which implied that majority of the respondents coalesced around the same response without differing to a great extent across the entire inventory management.

The findings of the study showed that construction industry not only needed to improve its inventory management systems but also to ensure appropriate inventory management techniques for enhancing high degree of accuracy, reduced cycle times and replenishment of stock. Therefore the need for a proper inventory management in the industry could not be over emphasized given the nature of the firm’s operation where equipment and components used are usually very sophisticated. This therefore indicates that the current practices of inventory management in the construction industry have a major effect on the logistics management.