Analysis of Purchasing Efficiency Through Goods and Services Procurement Procedures in the Purchasing Division of PT XYZ

Abstract

PT XYZ is a company engaged in the manufacturing, assembly, and testing of electronic modules and components for the global automotive industry. To support the smooth running of its operational activities, an efficient procurement process for goods and services is essential. Based on data from the XYZ Pre-PR Tracking, there are serious issues in the efficiency of the procurement process. The percentage of items that experience delays is quite high, very slow with a category above 15 working days, far exceeding the target time of 7 working days. These delays have the potential to disrupt the company's operational continuity. The purpose of this study is to analyze the efficiency of the goods and services procurement procedures and to identify the factors that influence this efficiency. This research uses a qualitative descriptive method supported by a Value Stream Mapping (VSM) approach. The findings of this study indicate that most of the time in the procurement process is spent on activities that do not provide direct value to the efficiency of the procurement process especially on the manual approval request process which is less efficient, and should be simplified through system digitization.