Optimizing Vendor Selection and Standardization in EDC Machine Supply Chain

Abstract

The main problems faced by the organization are undelivered SLA performance, non-standard quality between vendors in different areas nationally, and no standard in outsourcing of certain selected vendors. This study aims to optimize the vendor selection and standardization process in the EDC machine supply chain process at PT. XYZ, by utilizing the IT Governance approach using COBIT 2019. By using a research methodology with qualitative and quantitative approaches, this study analyzes the gap between Vendor Governance by utilizing the main domains of COBIT 2019, especially in APO10 (Managed Vendors), DSS01 (Managed Operations), and MEA01 (Monitoring Performance). This process includes mapping Enterprise Goal to Alignment Goal and selecting the relevance domain to be used, and measuring the process Capability Level using Level 0-5. The results of the study show that more of several key activities in the APO10, DSS01 and MEA01 domains are still at capability levels 2 and 3, indicating that some activities are not well documented consistently in some areas. Therefore, the novelty of this research is conveyed by making a performance assessment based on Simple Weighted Average (SAW) as part of the Multi Criteria Decision Making (MCDM) model, performance scorecard, vendor evaluation and vendor rationalization simulation to enforce efficiency and improve service quality.This study purpose to optimize process vendor selection and standardization at supply chain process of EDC machines at PT. XYZ, by utilize IT Governance approach using COBIT 2019. Main problem that being face by organization are undelivered SLA performance, non standard quality between vendor in separate area nationwide, and there is no standard in selected specific vendor outsourcing. Using research methodology using qualitative and quantitative approach, this study analyze gap between Vendor Governance by utilize key domains of COBIT 2019, especially at APO10 (Managed Vendors), DSS01 (Managed Operations), and MEA01 (Monitoring Performance). This process including Enterprise Goal mapping to Alignment Goal and choosing relevance domain to be used, and measure Capability Level of process using Level 0-5. This evaluation being conduct by Executive Vice President (EVP), Vice President (VP) and Assistant Vice President (AVP) of EDC Services team in contextual with operational process. This research show that more of several key activities at domain APO10, DSS01 and MEA01 still at level of capabilities of 2 and 3, showing that several activities not well documented consistently across several areas. Therefore recommendation being deliver by creating performance scoring based on Simple Weighted Average (SAW) as part of Multi Criteria Decision Making (MCDM) model, performance score card, vendor evaluation and simulation of vendor rationalization to enforce efficiency and increasing service quality. This study have given direct contribution at PT. XYZ in order to design and develop Governance Vendor Management that more structured and approachable to increase transparency and consistency that align with Organization Strategic. Not only that, this study showing how EGIT framework can be implemented to handle real world case in managing distribution of I&T asset.