E-Procurement System Analysis Using the Analytic Hierarchy Process (AHP) Method at Mining Contractor Company

Departement of Industrial Engineering, Faculty of Engineering, Bina Nusantara University, 11480 Kemanggisan, Jakarta, Indonesia

Abstract

Supplier selection is very important in ensuring supply chain activities can run well. This study aims to determine the factors that are taken into consideration in supplier selection, as well as the effectiveness of following the procurement process through the e-procurement system with the Analytic Hierarchy Process (AHP) method in mining contractor companies. The data collection technique used was a questionnaire to 25 worker respondents. The data processing method with the AHP method is to calculate the matrix consistency ratio and the hierarchy consistency ratio. This research is focused on suppliers of Information Technology product providers by considering 4 supplier criteria factors, namely price, quality, delivery time and warranty. The AHP analysis that has been carried out is then applied to the E-Procurement system. The AHP analysis produces a weighting value for each criterion with the criteria codes K1, K2, K3 and K4. This weighting value will be applied in the E-procurement system to determine the best supplier. From the results of E-procurement there are 4 suppliers involved in this selection that match the 4 criteria factors. For the level of effectiveness of the application of goods procurement through the e-procurement process and AHP in mining contractor companies, it is very good so that from this process we can find out the best suppliers and deserve to be suppliers. The results obtained from the four suppliers who have the best criteria based on all criteria with a value of 1.001.