Supply Chain Management Strategy for Recycled Materials to Support Sustainable Construction

Abstract

Sustainable construction as a construction method is a beginning to gain traction among Indonesian contractors, but with the dearth of research, knowledge, socialization and strategic support in this field, there are many obstacles towards en masse adoption in Indonesia: to be applied “effectively” and to become part of a “strategic method”. The concept of Sustainable Construction primarily emphasizes the wise use of resources (primarily natural resources), thereby systematically guaranteeing the fulfillment of future needs. However, the use of recycled materials is still hampered by the difficulty of field implementation; this is attested by the low scores attained in green building certification. This study will analyze the strategies needed to support sustainable construction in relation to supply chain management for materials, which have not been implemented well in Indonesia, whereas it has the highest impact in contributing to the effectiveness of sustainable construction. The aim of study is to analyze supply chain performance in materials of construction projects. The measurement used is the Supply Chain Operations Reference (SCOR) model with perfect order fulfillment and overall value at risk as a Key Performance Indicator (KPI). The result of the study is the percentage of material that could be used by the management of supply chain. Once the KPI is more fulfilled by perfect order fulfillment, the use of material is more complete to support sustainable construction.