Perpustakaan Digital ITB

Recently, Indonesia has renewed the Construction Service Law regarding the development of the construction industry, emphasizing the importance of the construction supply chain in supporting construction service performances. However, small-sized contractors cannot manage or even shorten their supply chain, due to the relatively low volume and frequency of work. In international practice, one of the answers to this problem is the Construction of Third-Party Logistics (TPL) – an external organization that performs all or part of a company’s logistics functions. Considering the characteristics of Indonesia’s construction supply chain, TPL service cannot be simply duplicated and utilized, as doing so may cause more harm than good. This research aims to shed light on the risks that need to be borne in establishing a Construction TPL service in Indonesia. A probabilistic risk analysis approach to construction logistic operations is proposed. Based on the hierarchical simulation model, risk factors can be analyzed at the operation level of logistic operations. Moreover, the Bayesian network is embedded into the simulation program to quantitatively calculate the probability of risk events in each simulation cycle, considering geographical restriction, planning risk, information-sharing, and management quality and their mutual dependence. Through running the simulation, contingency resources (time and budget) are determined and may provide a certain level of confidence for TPL providers to execute their logistics services successfully. Moreover, a comparative analysis between the two alternatives of TPL arrangement (terminal-based arrangement and checkpoint-based arrangement) shows that terminal-based arrangement has a higher resistance toward logistic risks.