Effect of Lean Procurement on Supply Chain Performance in Construction Industry: An Empirical Study on Twin Cities of Pakistan

Abstract

This study has focused mainly on investigating the effect of lean procurement on supply chain performance in construction industry. This study has considered e-procurement, lead time, waste elimination and cost reduction as independent variables, supplier relationship as moderating variable, and supply chain performance as dependent variable in this study. The vital significance in this research has been on determining the relationship between e-procurement, lead time, waste elimination and cost reduction (independent variable), supplier relationship (moderating variable) and supply chain performance (dependent variable) in construction industry in twin cities of Pakistan. To verify this relationship, a survey has been conducted through an adopted structured questionnaire regarding this literature, in which supply chain members associated with construction firms operating in twin cities of Pakistan have been requested to share their experiences by filling the questionnaires. Then, to identify the results on data gathered from the respondents, statistical instruments have been used. Some of the statistical instruments used in this study includes descriptive frequencies, reliability, correlation, regression, moderation, etc. Results derived through statistical instruments by using the software SPSS have shown that there exists a significant positive relationship between e-procurement, lead time, waste elimination and cost reduction (independent variables), supplier relationship (moderating variable) and supply chain performance (dependent variable). Conclusively, it has been proved that e-procurement, lead time, waste elimination and cost reduction positively impact supply chain performance in construction industry in twin cities of Pakistan. Furthermore, moderation analysis has proved the significant moderating effect of supplier relationship on the relationship between e-procurement, lead time, waste elimination and cost reduction (independent variables) and supply chain performance (dependent variable) in construction industry in twin cities of Pakistan.