Study On Construction Supply Chain Management System And Performance Evaluation Method

The construction industry is a key sector for national economy, its position and role is becoming more important. The construction industry reached a proportion of 5.7% of GDP now, and the added value of construction in some areas is more than 10% of GDP. Construction industry has become a major source providing employment to absorb surplus rural labor force and has become the main channel for farmers to add revenue. Construction industry has absorbed about 40 million surplus rural labors, and it is one-third of rural migrant workers. In the 10th Five-Year Plan period China's foreign contracted project income has increased more than 400%. The China's capability of contracting foreign projects improved steadily in the international market.However, construction industry profit rate is only about 2% and is significantly lower than those in other industries. Even deep impacted by the owed projects turnover in 2001, the state-owned construction enterprises profits had become a negative, which is clearly inconsistent with its economic position. Compared with manufacturing sector, its low industrial concentration, poor management mode, slow technological progress has become a major bottleneck constrained to the construction industry development. This article believes that construction industry should apply the advanced management theory, analyze and design systematically and comprehensively for future development. Supply chain management should be the theoretical basis for construction industry development in the further, it should be promoted and applied extensively, and break the current deadlock of construction industry development.Supply chain management theory is one of the most advanced management theory, it is based on that people understand and grasp the intrinsic rules and links between every parts in the supply chain and use the management function of planning, organization, direction, coordination, control and incentives for production and circulation process, involved reasonable regulation and control in all aspects of the logistics flow, information flow, capital flow, value flow, as well as transaction in order to achieve the best combination, get the maximum efficiency, and minimize costs quickly in order to provide customers with the largest value-added.At present, China's construction industry supply chain management application is still very fragmented and preliminary. Some specific issue studies have not formed a complete theoretical system. The study on construction supply chain management system and on construction supply chain management model as well as on performance evaluation methods are very important. It will enhance to carry out a systematic study of the supply chain management theory in the construction industry, improve application of foreign construction supply chain management experience and research results, increase the construction enterprises'international business competitiveness and improve the confidence of general business community and government for construction supply chain management theory. It will improve the same trade business relations, maintain the order of construction market and maintain the sustained and healthy development of the construction industry, so it has important practical significance.This article first analyzes the development of construction industry and its existing problems, analyzes the significance of supply chain management theory application in construction industry; puts forward the content and significance of this paper. It explores the theoretical basis of construction supply chain management system, such as: Williamson's transaction cost theory, public goods management theory, the principal-agent theory, theory of corporate governance, enterprise resource and capacity theory and etc. Then the paper analyzes empirical methods for supply chain management performance evaluation, including correlation analysis, regression analysis, nonparametric tests and so on.On the basis of construction industry supply chain management theory analysis and application analysis, this article points out the supply chain management system innovatively. Its contents are: the relevant theories and their application; the methods and application model research of construction supply chain management, including work flow management, capital flow management, information flow management, value flow management; performance evaluation of the construction supply chain management system, including the research of the evaluation index system and evaluation methods of market environment, construction companies and construction projects.By the study of construction companies and construction project management methods and models, this paper points out a construction supply chain management system optimization model, divided information into transactional information and analytical information. It uses transactional information systems and analytical information system, and it will improve supply chain management effect when two different kind of system in function and structure support each other.In this article the writer put forward a new construction supply chain management performance evaluation system and application methods based on the empirical analysis. The specific ways are: first, determine all the related supply chain performance indicators, including: workflow management ability evaluation aspect; information management ability evaluation aspect; financial management ability evaluation aspect; value flow management ability evaluation aspect. Then evaluate the relevance of specific performance indicators with construction enterprise performance, the methods of evaluation relevance are: Mann-Whitney U test of two independent samples; Spearman correlation analysis; the Kruskal-Wallis test of a number of independent samples; Wilcoxon test for two pairs samples; Z test, and so on. Finally, by regression analysis identify the corresponding weight of every correlation indicators.According to the 2007 annual reports of mainland construction companies listed in China, the paper carried out a case study and the arguments put forward are verified. Empirical analysis shows that supply chain management abilities of construction enterprise such as workflow management ability, information management ability, financial management ability, value management ability are crucial for enterprise performance. Specifically as follows: Enterprises and its controlling shareholder have a clear performance advantage when they formed an optimized product supply chain structure. In corporate governance aspect there is no evidence that state-owned enterprises all have a bad economic efficiency although there is lack of enterprise owner, while wanton financing and high pay problems have shown in private enterprises, and the ethical risk problem of private enterprise operators should cause our attention. Many phenomena, such as executives holding shares, the independent director system, the number of enterprise legal cases and etc. have no obvious economic correlation with the enterprise performance. Corporate financing cost has relevant closely to the level of enterprise performance, so companies should operate sound, not be too boldly and be in debt deeply, it would make enterprises facing bad operational risk. Based on the perspective of supply chain it is a good way that business should strengthen links with the research firms, hold the research enterprise shares, or hold research companies to enhance the enterprise ability of science and technology application. The effect is uncertain that business carried out their own R&D projects. Taking account of development of corporate strategic investors is an effective way to improve their own corporate capacity for competitiveness, and focusing only on self-building strategy has proved to be a less efficient.This writer believes that the above analysis is a slice like analysis for construction companies in a particular historical period, and as time changes, the influenced factors for enterprises economic efficiency will change. As the interaction between business impact variables and the relationship are complex, it can not come to point that there are primary and secondary factors.The study on construction supply chain management system will enhance the enterprises economic efficiency and business competitiveness. It will improve the government's decision-making level and give some operational ideas for government to refine the construction market related laws and regulations.