Impact of Logistics A Management Practices on Construction Firms Performance in Abuja, Nigeria

Abstract

Construction projects are characterized by a unique element of temporariness as production is carried out at the final place of consumption with new production sites in each new project. This uniqueness indicates that logistics in construction needs to be managed in a more dynamic way to and from sites. Unfortunately, the Nigerian construction industry faces challenges of corporate logistics leading to delayed and inaccurate information, incomplete services, slow and inefficient operations, and a high product damage rate. The study therefore assessed the impact of a set of logistics activities on construction firms' performance in Abuja with a view to enhancing project delivery. The study adopted a quantitative research approach using the survey research design. Structured questionnaires were used to collect data from 327 logistics officers of construction firms registered with Corporate Affairs Commission, Abuja at a response rate of 30.58%. Analysis of data was undertaken using descriptive statistics such as percentage, frequency counts and Mean Item Score (MIS); and inferential statistics such as Spearman Rank (rho) correlation analysis with the aid of IBM 23.0 SPSS software. The study identified thirteen (13) logistics management activities, of which ones adopted the most were "Order Processing" (MIS = 4.48), "Replenishment" (MIS = 4.40) and "Dispatching" (MIS = 4.40). The logistics management activities adopted the least were "Tracking" (MIS = 3.62) and "Transportation" (MIS = 3,48). The study also identified nine (9) Key Performance Indicators required in testing logistics management practices, out of which the most important ones were "Quality" (MIS = 4.53) and "Serviceability" (MIS = 4.50). It was also revealed that there exists a strong, positive and significant relationship between the adoption of combined logistics management activities and construction firms' performance in Abuja (r = 0.568; p = 0.000). The study concludes that the impact of a set of logistics activities on construction firms' performance in Abuja is significant and can enhance the delivery of construction projects.It was therefore recommended that in order to enhance the level of adoption of logistics management practices, construction firms should develop a mechanism that will be based on reduced delays in material delivery, minimization of disruptions caused by material shortages or logistical bottlenecks and maintenance consistent progress on construction projects