Design for Vendor Profile Data Management Improvement Solution in Direct Material Procurement PT. X

Abstract

PT.X is a multinational company in Indonesia which is engaged in the consumer goods. This research was conducted in one of department that support the process in PT. X that is direct material (DIM) Procurement department. One of DIM Procurement’s role is to manage vendor’s document and data profile. The data is used by DIM user for purchase order process, payment process and other various process in PT. X. DIM Procurement expects a more efficient and effective work system, so DIM can manage every process and also to better serve DIM user. The problem identification results show there are four main problems that occurred in the process of vendor profile data management. The main problems such as vendor data review process is not running effectively, the process of delivering information is not effective, the long processing time of update profile data, and the process is not transparent. Root causes analysis is conducted using five whys analysis method and the results show there are 19 root causes that occurred in the process of vendor profile data management. Digitalization is the overall solution that can fix the process of managing vendor profile data. Digitalization will change the initial process of delivering information from using e- mail, now using an online portal system called DIM Vendor Profile Management. DIM Vendor Profile Management system will connect each parties who involved in the process and improve the process to becoming more effective, efficient, and transparent.
 Keywords: five whys analysis; root cause analysis; vendor profile management