Implementation study of procurement plan consolidation to increase bargaining power of tenders and availability of long-term contracts: Case study on procurement of fabrication services at PT Petrokimia Gresik

Abstract

To increase competitive advantage in the commercial market, PT Petrokimia Gresik implements a single-door procurement system. With the existence of the single-door procurement system, every request for procurement of goods and services can be managed and evaluated centrally to ensure that the procurement object is obtained at a reasonable and consistent price. The service procurement mechanism has a more significant impact than the goods procurement mechanism because there is a new work unit, the Service Planning Section, which is in charge of managing and evaluating service procurement plans. One of the service procurement objects with the most dominant value and number of transactions is fabrication services. The Service Planning Section consolidates the plan for fabrication services procurement required by the User to accumulate procurement quantum to increase the bargaining power of tender due to higher demand volumes. In addition, the User, which so far does not have a long-term contract in the field of fabrication services, can also be added as contract user because before the Service Planning Section, the making of a long-term contract was only proposed independently by the User, which in the organization’s assignment did not have competency in service procurement strategy. The results of the research show that the price after negotiation decreased by 10.88% from the owner’s estimate, there was no deviation in the rate of fabrication services in each user, the availability of fabrication service contracts increased by 75% based on the number of users that could be served and increased by 40% based on the number of vendors that can be provided.