Vendor management system improvement using PDCA and optimizing transporter vendor selection using fuzzy analytical hierarchy process

Abstract

Transportervendor is essential for a Fast-moving consumer goods factory to distribute processed palm oil and its derivatives to distributors, retailer and customers. The purpose of this research is to set a transporter vendor selection system based on the weighted criteria: price, reliability, flexibility and company qualification using the Fuzzy Analytical Hierarchy Process (FAHP) method. Followed by designing of Vendor management System (VMS) which will be used interactively by both the transporter vendor and the FMCG factory admin, so that the logistic process documentation is recorded properly. The FAHP selection results determined transporter C as the winner for the truck type of double colt diesel (CDD) and colt diesel ankle (CDE). And transporter G as the winner for the type of wing box truck (WB). Theproposed VMS application design which carried out using Plan-Do-Check-Action(PDCA), House of Quality (HOQ), and User Centered Design(UCD), which contains 22 functional requirements for admin and 15 functional requirements for the transporter.