Construction Supply Chains for Strategic Materials of Building Contractors in the Greater Bandung Areas

Abstract

Building contractors in the Greater Bandung areas has been facing challenges due to the economic growth of in the tourism sector. Private buildings such as residential, hotel and apartment have been developed to support the growth. Building contractors should have some strategies in doing their busi-ness, one of the important strategies is purchasing strategy in construction materials. However, to manage the purchasing efficiently and effectively, the supply chain of strategic construction materials should be mastered by each contractor. Therefore, a study on the supply chain of strategic materials of the building projects in the Greater Bandung areas is needed. The paper dis-cusses a study to identify the construction supply chain of building contrac-tors, i.e., the structure and behaviour of the supply chain, in the Greater Bandung areas, Indonesia. The study uses a survey method to 17 building contractors in the Greater Bandung areas as a start point to further look for the suppliers of their strategic construction materials and their supply chain’s structure and behaviour. The coverage of the structure of the construction supply chain is its channels, number suppliers involved for each strategic material and suppliers’ capacities. The behaviour includes the relationships between suppliers and how they set up the prices. Another result from the study explain the practices of material and purchasing management by the building contractors in the area of Greater Bandung.