The Improvement of Procurement Process for Promotional Goods Using Value Stream Mapping and Multi-Criteria Decision Making
摘要
As one of the Fast-moving Consumer Goods (FMCG) companies operating in the cosmetics sector, a company must engage in promotional activities through print or social media and offer attractive package. To support competitive advantage in procurement process requires a careful yet effective selection of suppliers by implementing lean concepts. Value Stream Mapping (VSM) and improvement through the ECRS method will focus on efficiency without compromising process effectiveness by enhancing value-added operations and reducing waste. By reducing time wastage and simplifying the supplier selection process, production lead times become faster while maintaining the same level of value-added activities. To realize time waste reduction while ensuring effectiveness, a decision-making method is needed to accommodate subjective evaluations, unclear demands, and redundancy in bid requests and evaluation quantification. Therefore, this research applies Multi-Criteria Decision Making (MCDM) to identify the best supplier based on 8 criteria. The Best–worst Method (BWM) utilized to determine the weight of each criterion and sub-criterion, which will then be used to rank suppliers using the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). From the result of the determination of alternative ranking, it can be seen that the most fulfilling alternative is Alternative/Supplier 4 because it has the highest score of similarities.