CBPM Conference 2026 · Vol. 2026, Issue 1

Supplier relationships and logistics management to reduce material supply disruptions among SME contractors in the Western Cape, South Africa

Bassadien, Y., Sogaxa, A., and Bashingi, N

Keywords: Construction procurement, logistics management, material supply disruptions, supplier relationship management, and Western Cape Province

Abstract

The purpose of this study is to investigate effective SME contractors' supplier relationship management and logistics strategies to prevent material supply disruptions and enhance construction project performance for SME contractors. This study adopted a quantitative research method. 75 survey questionnaires were distributed to respondents to investigate supplier relationships and logistics management to reduce material supply disruptions. To achieve the objectives of this study, the Statistical Package for the Social Sciences (SPSS) version 31 was used to analyse the data gathered, using both mean ranking and principal component analysis (PCA). To ensure the internal consistency of constructs, this study used Cronbach's Alpha. The findings reveal loyalty agreements with high-performing suppliers, long-term contracts with key suppliers, working closely with suppliers on project requirements, tracking shipments from dispatch to site, planning for alternative delivery routes or vehicles, ensuring that materials are delivered just-in-time, financial stability, logistics capability, and maintaining a database to reduce material supply disruptions. Furthermore, PCA findings reveal that SME contractors adopt supplier logistics coordination and implement strategic supplier and logistics management to reduce material supplier disruptions. This study shows that strengthening collaboration, enhancing logistics coordination, and promoting supplier development can significantly improve project outcomes. The research contributes to both theory and practice by providing a framework that supports SME contractors in achieving more efficient and reliable material supply, aligned with industry expectations and regulatory requirements. This study offers insights integrating supplier relationship management and logistics strategies in the context of SME contractors.