Building A Sustainable Business Ecosystem: Analyzing The Implementation of PaDi UMKM at PT XYZ Procurement Division

Abstract

Background: Procurement of goods and services is a crucial activity in supporting a company's operational efficiency. At PT XYZ, the previously centralized process led to long lead times, bottlenecks in meeting business needs, and delayed vendor payments.
Purpose: This study aims to evaluate and measure the effectiveness of decentralization policies and implementation of the PaDi UMKM platform in the procurement process. It also analyzes the impact of these changes on the roles, responsibilities, and risks within the procurement structure.
Design/methodology/approach: This study used a mixed-methods approach. Value Stream Mapping compares lead times before and after decentralization, the RACI Matrix analyzes role changes, and FMEA identifies potential risks. Data were collected through observations, unstructured interviews, time motion studies, and internal document reviews.
Findings/Result: Decentralization reduced procurement time by 61% and improved low-value purchase efficiency. The RACI Matrix revealed a shift in responsibility for the Business User. FMEA showed a risk reduction, lowering the RPN from 648 to 4. The use of PaDi UMKM also enhances vendor involvement and process flow.
Conclusion: This study concludes that procurement decentralization, supported by digital platforms such as PaDi UMKM, effectively improves operational efficiency, clarifies organizational roles, and mitigates procurement risk. These findings offer practical insights for financial service companies seeking to optimize procurement strategies through structural and digital transformation.
Originality/value (State of the art): This study offers both practical and theoretical contributions by evaluating the implementation of procurement decentralization in a financial services company. It uniquely integrates the VSM, RACI Matrix, and FMEA to provide a comprehensive view of the process efficiency, role structure, and risk mitigation within a decentralized procurement framework.  

Keywords: procurement decentralization, failure mode and effects analysis, raci matrix, value stream mapping