NEXUS BETWEEN SUPPLY CHAIN MANAGEMENT PRACTICES AND PERFORMANCE OF CONSTRUCTION COMPANIES IN NORTH-CENTRAL, NIGERIA

Abstract

Construction companies often struggle with inefficient supply chain management, leading to project delays, cost overruns, and reduced profitability. This study examines the Nexus between supply chain management practices and the performance of selected construction companies in the North central Nigeria Region. The combination of descriptive and survey research designs was used and the main research instrument was structured questionnaire. Data were collected from employees of the selected construction companies, Using Taro Yamane formula, it took a sample of 230 employees with an additional 20% margin of safety from the population of 370 employees. The study adopted the Multi-Stage Sampling technique by stratifying the construction firms and then applying purposive sampling within each category. The findings revealed that strategic supplier relationships significantly improve cost efficiency, while effective inventory management enhances profitability. The study concludes that optimizing supplier collaboration and inventory control mechanisms is essential for improving the financial and operational performance of construction firms. It recommends that companies should leverage technology-driven inventory management systems, develop long-term supplier partnerships, and engage in capacity-building programs to enhance SCM efficiency. Additionally, policymakers should focus on infrastructure improvements and regulatory reforms to create a more enabling environment for construction supply chains. These findings contribute to practical solutions for SCM challenges in the construction industry in North-Central Nigeria.