INDONESIAN CONSTRUCTION SUPPLY CHAINS COST STRUCTURE AND FACTORS: A CASE STUDY OF TWO PROJECTS The construction industry consists of thousands of companies. A lot of problems in construction like increased construction costs, delays, conflicts and other, that can make inefficiency in construction industry. 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.The author uses an interview method to collect data on the cost structure, amount of expenditure for each component cost, and the factors can affect the component cost. Respondents consisted of project managers, engineering managers, operational managers, administrative managers, and procurement division in the 2 big construction project. The research found that the cost of purchasing was very significant in supply chains activity due to merely cost of material purchased. To the contrary, costs of transportation and inventory were trivial. From this finding, it can be concluded that efforts to reduce supply chains cost by reducing costs of inventory and transportation would not be effective. Factors that could influence the cost of supply chains, especially cost purchasing, therefore are very related to management of supply chains, such as procurement policy, material requirement planning, supplier qualification, selection process, contract, and supplier development.
Miranda Putri Agustin
1116040038
MB6B
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