OPTIMIZING VENDOR SELECTION AND STANDARDIZATION IN EDC MACHINE SUPPLY CHAIN AT PT. XYZ

Abstract

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.