Abstract

Studies of Indonesian construction supply chains have been in the early stage. Previous studies have described very well the structures of construction project supply chains. Moreover, one of strategies that have been considered by construction companies for gaining a competitive advantage is to reduce the cost of their supply chains. The research's objective is to identify the cost structure of construction supply chains in Indonesia and factors that could influence it. By knowing these factors, construction companies are expected to be able to determine strategic efforts needed for reducing cost of their construction supply chains. Two construction projects operated by a large construction company were explored as case-studies. Rebar material was chosen for this supply chains study. It was found that the cost of purchasing was very significant. Meanwhile, costs of transportation and inventory were insignificant. It can be concluded that efforts to reduce supply chains cost by reducing costs of inventory and transportation would not be effective. Therefore, factors that could influence the cost of supply chains are related to management of supply chains, such as procurement policy, material requirement planning, supplier qualification, selection process, contract, and supplier development. Santrauka Ankstesniuose Indonezijos statybų tiekimo grandinių tyrimuose labai gerai apibūdintos statybos projektų tiekimo grandinių struktūros. Be to, viena iš strategijų, kurias statybų įmonės nagrinėjo kaip galimybę įgyti konkurencinį pranašumą, buvo išlaidų mažinimas tiekimo grandinėms. Šiuo tyrimu siekiama nustatyti Indonezijos statybų tiekimo grandinių išlaidų struktūrą ir jai įtaką galinčius daryti veiksnius. Žinodamos tokius veiksnius, statybų įmonės turėtų sugebėti nustatyti, kokios strategijos leistų sumažinti išlaidas statybų tiekimo grandinėms. Atvejui tirti pasirinkti du statybų projektai, kuriuos vykdė stambi statybos įmonė. Šiam tiekimo grandinių tyrimui pasirinkta armatūra. Nustatyta, kad pirkimo kaina buvo labai svarbi, o pristatymo ir inventorizacijos išlaidos svarbiomis nelaikytos. Galima daryti išvadą, kad bandymas apriboti išlaidas tiekimo grandinėms, mažinant inventorizacijos ir pristatymo išlaidas, nebūtų veiksmingas. Taigi išlaidoms, kurios skiriamos tiekimo grandinėms, įtaką galintys daryti veiksniai yra susiję su tiekimo grandinių valdymu: pirkimo politika, medžiagų poreikio planavimu, tiekėjų kvalifikacija, atrankos procesu, sutarties sudarymu ir tiekėjų tobulinimo programa.

Highlights

  • It is well acknowledged that construction is a highly “fragmented” industry

  • This type of cost structure is common in construction industry since construction projects are always concerned with managing resources for the construction operation in the field

  • In these project cases, more aggregative structure of the costs was not recognized either. This leads to the conclusion that the construction company had not developed proper cost accounts and, could not sufficiently control its project costs based on activities, physical elements of project, or any other attributes that will be needed to measure the project’s performance

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Summary

Introduction

It is well acknowledged that construction is a highly “fragmented” industry. One potential ways of improving the efficiency is by managing the construction supply chains. A supply chains is complex, dynamic, and involves the flow of information, materials, and funds, between different and independent stages. The appropriate management of these flows is required in order to respond to the clients’ expectations and keep supply chains costs at a satisfactory level. The Construction Industry Institute’s definition of supply chain management (SCM) is “the practice of a group of companies and individuals working collaboratively in a network of interrelated process structured to best satisfy end-customer needs while rewarding all members of the chains” (Tommelein et al 2003). Nowadays a company’s competitiveness depends on its supply chains (Christopher 1998)

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