Strategic Framework Supply Chain through Kraljic Purchasing Portfolio in O&M Power Plant Company

Abstract

This paper aims to determine a flexible and extensible model (strategic framework) in classifying the needs of materials/services as a procurement guideline for the company’s operating and maintenance service providers (O&M) power plants. PT PJB Services is a service provider of O&M which leads the market by managing power plants scattered across various islands facing problems related to the delay supply of spare parts. One of the efforts that can be done is to increase the efficiency of the procurement process by determining the model to identify important supply chains. This Model was obtained by the analysis of purchase portfolio using the Kraljics matrix. The design is based on a spare part position in the Kraljic portfolio Matrix consisting of a dimension of risk procurement and impact profit. The application of this model enables the determination of the critical company in the high lead time problem and the provider of materials/services involved. Analysis of critical needs position (including the suppliers involved) in the Kraljic matrix allows can be defined some strategies that may be applied to the lead time reduction.