Evaluation of the Procurement Process Regarding Delays in Goods Delivery After the Purchase Order (PO) Document is Released in Systems Applications and Products (SAP)

Abstract

Delays in the delivery of goods in the procurement process are a serious challenge for manufacturing industries, including PT X which is engaged in metal stamping and electronic component assembly. This study aims to identify the causes of delays and design improvement strategies to minimize their impact on the production process. Data was obtained through interviews and documentation from the SAP system with a mixed approach (quantitative and qualitative) with a mixed method type of sequential explanatory design, and analyzed using the DMAIC method. The results showed that delays in the delivery of goods after the issuance of a Purchase Order (PO) document in the SAP system were caused by a number of internal factors in the procurement process, such as the length of time for automatic Purchase Requisition (PR) generation, time-consuming approval processes, and external factors such as the readiness of vendor companies to produce goods and the obstruction of the goods distribution process due to natural factors. These delays have a negative impact on both parties. Delays in the delivery of goods in the procurement process are a serious challenge for manufacturing industries, including PT X which is engaged in metal stamping and electronic component assembly. This study aims to identify the causes of delays and design improvement strategies to minimize their impact on the production process. Data was obtained through interviews and documentation from the SAP system with a mixed approach (quantitative and qualitative) with a mixed method type of sequential explanatory design, and analyzed using the DMAIC method. The results showed that delays in the delivery of goods after the issuance of a Purchase Order (PO) document in the SAP system were caused by a number of internal factors in the procurement process, such as the length of time for automatic Purchase Requisition (PR) generation, time-consuming approval processes, and external factors such as the readiness of vendor companies to produce goods and the obstruction of the goods distribution process due to natural factors. These delays have a negative impact on both parties.