Digital Inventory Tracking Systems in Construction

Abstract

Manual inventory management practices in the Malaysian construction industry contribute substantially to project inefficiencies, resulting in approximately 17.3% of project delays due to material shortages and stock record errors, with errors reaching up to 35%. These challenges limit real-time visibility and hinder effective decision-making, particularly as the Construction Industry Development Board (CIDB) advances the Construction 4.0 digitalisation agenda. This study aims to develop an integrated System Development Life Cycle (SDLC) framework specifically designed to support the implementation of Digital Inventory Tracking Systems (DITS), such as SmartStock Builder, addressing the absence of construction-specific system development frameworks. The proposed SDLC framework encompasses problem identification, user requirements analysis, system design, development, testing, implementation, and post-deployment maintenance. Comparative process analysis provides theoretical support for potential reductions of up to 30% in inventory errors and 30% in operational costs through the adoption of digital technologies, including barcodes, QR codes, RFID, and cloud-based platforms for real-time monitoring. The implementation of DITS enhances inventory accuracy, improves communication through centralised data access, enables real-time material tracking, and reduces operational inefficiencies. Overall, the framework supports the transition from manual inventory practices to automated, data-driven systems that enable more informed, proactive resource management in construction projects.