Designing Green Procurement System Based On Enterprise Resources Planning For The Rubber Processing Industry

Abstract

The rubber processing industry is one of the manufacturing industries that pay attention to every activity on its production process that occurs during rubber processing. The work done in the production process at manufacturing, such as the rubber processing industry, produces waste that harms the environment. Therefore, it is necessary to monitor business activities. In this study focuses on designing application based on Enterprise Resource Planning (ERP) by running a green procurement system therein. Green procurement provides solutions to the selection of materials and services that can minimize the impact on the environment and provide benefits for the company. In implementing of green procurement system, ISO 14000 standardization data to determine the green supplier and the green material attributes data are needed to use for the Key Performance Indicator (KPI) report. The ERP-based application can generate report Key Performance Indicator (KPI) for green materials and green suppliers to help the company to monitor business processes in green procurement. However, the process of measuring the percentage of green materials and green suppliers is out of the scope of the discussion in this study, because this study only provides designing an application to implement green procurement. The selection of application based on Enterprise Resources Planning (ERP) is due to an ERP system that can add and also update data and information without duplication so that it can improve employee efficiency in monitoring business process activities with data integration in application based on Enterprise Resources Planning (ERP). The design of this application is tailored to the user requirements for green procurement that focus on the ability of the application system to provide purchase requisition, request for quotation, supplier selection, purchase order and integrating data such as payment of materials with the finance division, integrating data material that enters warehouse with the warehouse division. In addition, the aim of this study is to have an information system in monitoring business process activities carried out during the procurement process in the rubber processing industry using the Key Performance Indicator report, to assist in the management of procurement business processes using Enterprise Resource Planning (ERP) system.