9 Implementation of E-Procurement in Micro, Small and Medium Enterprises (MSMEs) in
Yogyakarta
Reni Listyawati1, Uum Helmina Chaerunisak2, Sri Lestari Yuli Prastyatini3 Universitas Sarjanawiyata Tamansiswa123
renilistyawati@ustjogja.ac.id
Received: 13th September 2023/ Accepted: 25th September 2023/Published online: 27th September 2023 ABSTRACT
Purpose-Community Service (Abdimas) activities carried out at the MSME "Dapoer Tania" aim to improve marketing methods by increasing the intensity of utilizing social media, increasing the capacity for product and packaging innovation, and implementing operational procedures for the e-procurement system by considering certain criteria for selection. digital supplier that produces a standardized and structured system at "Dapoer Tania"
Methods-Implementation of activities is carried out through several stages, namely field observation, training and mentoring. The first stage was collecting data using survey and interview methods. The survey was carried out through direct monitoring of the situation that actually occurred in the MSME "Dapoer Tania". This monitoring is carried out so that it can be described what needs need to be in the information system to be built. Next is the interview. Interviews were conducted through discussions with owners regarding obstacles, business processes and implementation of e-procurement systems and checking existing SOPs in MSMEs. The second stage is carried out after identifying the problems found in the first stage. The third stage is carried out after field observations and training are completed.
Results and discussions-Technological developments have brought convenience to services so that many companies are adopting e-procurement as a supply chain support to be able to adapt to market changes and to achieve business goals, such as operational efficiency, sustainability and profitability. Many companies are adopting e-procurement because of its ability to streamline supply chain networks. The emergence of e-procurement has created a higher profile for supply management as well as increased visibility to a company's top management. By adopting this technology, it has influenced organizational performance, both directly and indirectly. The results of this service also show that the marketing method training program by increasing intensity utilizing social media,
Conclusion-E-procurement brings transparency and effectiveness in the supply chain and makes a significant contribution to supply chain performance. In addition, e-procurement also allows companies to measure and monitor orders, such as processing time, order delivery time, and current status. Therefore, the implementation of e-procurement in MSMEs plays an important role and will have an impact on improving supply chain performance in MSMEs.
Keywords: Community service, E-Procurement, MSMEs, supply chain management
10 INTRODUCTION
MSMEs are one sector that plays an important role in the economic recovery process after the impact of the Covid-19 pandemic. In 2021-2022, it is recorded that MSMEs have contributed around 61% to national GDP and are able to absorb up to 97% of the total existing workforce and can collect up to 60%
of total investment. This is not only due to the impact of the pandemic which limits various activities, but also the impact of developments in information and communication technology. Of course, several MSME operators are also taking advantage of the growth in digital transactions for various activities, including marketing and digital procurement. Hence the term e-procurement, which defines the procurement of goods or services electronically, which is usually carried out via the internet (Olatunji & Adeniyi, 2021). Sourcing complexity in selecting reliable suppliers is a particular problem for SMEs. Therefore, the search for the best supplier requires careful consideration and precise calculations, especially digitally.
The advantages of e-procurement allow more flexibility in responding to volatile market changes. The rapid development of the electronic market has an impact on suppliers and buyers to buy and sell products online. Apart from that, he also mentioned the advantages of electronic procurement which include the elimination of geographical barriers and simplification of the procurement process. In implementing e- procurement, business people certainly have criteria for selecting suppliers starting from price, quality and service. According to Fernandes & Vieira, (2015) and Gunasekaran et al., (2009) also states that e- procurement helps save overall costs in the purchasing process and facilitates supply chain transparency in terms of product specifications, prices, contract details,
This Community Service activity was carried out at Micro, Small and Medium Enterprises (UMKM) in Yogyakarta by taking samples at "Dapoer Tania" which operates in the food sector such as rice bowls, yellow rice, rice boxes, processed chicken, crab, and various menus. other. The owner of the business is Rr. Violieta Annisa Titania / R.Ngt Mungki Retno Listriyani with business address Suryowijayan MJ 1/284 RT/RW : 014/002, Gedongkiwo, Mantrijeron, Yogyakarta. “Dapoer Tania” has an email foodtanianursya@gmail.com and several promotional accounts on Grab Food, Shopee, Go Food with the account name Nasi Kuning Tania and an Instagram account with the name @dapoer.tania.
Based on the results of surveys and interviews, it is known that various products are offered. At "Dapoer Tania", we can choose or ask for the toppings we want, we can also ask for the side dishes to be processed according to what we want. Prices for the products offered by "Dapoer Tania" start from IDR 7,000.00 to IDR 17,000.00, very suitable for the pockets of students and even all groups. With relatively cheap prices,
"Dapoer Tania" provides an opportunity for everyone to try its delicious and quality food menu at an affordable price. "Dapoer Tania" has the advantage of the products it sells at prices that can be reached by all groups, many varieties of yellow rice are offered, the taste is guaranteed and uses natural ingredients, there is a guarantee that if the taste is bad it can be replaced. From the power it has, “Dapoer. Tania "still maintains the selling price and taste of the product and continues to innovate so that people still like the product. The "Dapoer Tania" business also has the opportunity to dominate all groups, especially students.
Because one of the business owners is a student, this business has the opportunity to dominate student consumers. The products sold are practical and light, especially for breakfast, so they are suitable for students. On the other hand, the "Dapoer Tania" business is known to have several problems, including, first, product marketing promotion has not been maximized, product packaging is still ordinary, and sometimes there are differences of opinion or thoughts because this business is a family business so differences of thought or opinions are bound to exist. . Promotion by utilizing technology is one of the digitalization processes in the "Dapoer Tania" culinary business that has been carried out. Starting from using social media as a promotional or marketing medium, transaction methods without spending cash, ordering and delivery methods, to business management methods. Based on its weaknesses, "Dapoer Tania" will further develop and improve its products, such as by innovating its packaging, "Dapoer Tania"
will even build a special place for its business. Second, many competitors sell similar products, because this
11 product is a basic ingredient, and rising prices of ingredients increase capital. From the threats it faces, make it a challenge for competitors to be better at dealing with prices that sometimes soar high and have to innovate more than their competitors. Third, the e-procurement system is not yet running well, so standard operational procedures are needed to make it easier for "Dapoer Tania" to implement it.
Referring to the problem, the solution offered is 1) improving marketing methods by increasing the intensity of using social media. 2) increasing product and packaging innovation capacity. 3) implementing operational procedures for the e-procurement system by considering certain criteria for selecting digital suppliers which results in a standardized and structured system in "Dapoer Tania". The expected output target is that MSME partners are able to implement a standardized and structured e-procurement system into their business.
Benefits for partnersactivity after activity is known from the emergence of e-procurement has created a higher profile for supply management as well as increased visibility to a company's top management. By adopting this system, it has influenced organizational performance, both directly and indirectly. This e- procurement brings transparency and effectiveness in the supply chain and makes a significant contribution to supply chain performance. Apart from that, e-procurement also allows companies to measure and monitor product quality, delivery, service, price, responsiveness, reputation and guarantee. Therefore, the implementation of e-procurement in MSMEs plays an important role and will have an impact on improving the performance of MSMEs. When “Dapoer.
METHOD
The targets of this servant to the community (AKM) activity are the owners and employees of
"Dapoer Tania". Implementation of activities is carried out through several stages, namely field observation, training and mentoring. The first stage was collecting data using survey and interview methods. The survey was carried out through direct monitoring of the situation that actually occurred in the MSME "Dapoer Tania". This monitoring is carried out so that it can be described what needs need to be in the information system to be built. Next is the interview. Interviews were conducted through discussions with owners regarding obstacles, business processes and implementation of e-procurement systems and checking existing SOPs in MSMEs. The second stage is carried out after identifying the problems found in the first stage.
Table 1. Problems and Solutions offered
Problem Solution Expected
output 1. Product marketing promotion has not been
maximized, product packaging is still ordinary, and sometimes there are differences opinions or thoughts because this business is a family business so there are bound to be differences in thoughts or opinions. Promotion by utilizing technology is one of the digitalization processes in the
"Dapoer Tania" culinary business that has been carried out. Starting from using social media as a promotional or marketing medium, transaction methods without spending cash, ordering and delivery methods, to business management
1. Improve marketing methods by
increase intensity Whichutilize social media.
1. Partners become Canimplement method marketing via social media.
12 methods. From the weaknesses it has,
"Dapoer Tania" will further develop and improve its products, such as by innovating its packaging, even “Dapoer Tania” will build a special place for her business.
2. Many competitors sell similar products, because this product is a basic material, and rising prices of materials increase capital.
2. Increased capacity for product and packaging innovation.
2. Partners understand and understand how to innovate products and product packaging to make them attractive customer.
3. The e-procurement system is not yet running well, so standard operational procedures are needed to make it easier for
"Dapoer Tania" to implement it.
3. Implement operational
procedures for the e-procurement system by
considering certain criteria for
selecting digital suppliers which results in a standardized and structured system in "Dapoer Tania"
3. MSME partners are able to implement a standardized and structured e-
procurement system into their business.
When "Dapoer.Tania"
can implement the e- procurement process well and consistently, administrative processes can be carried out more quickly, accurately and cheap.
RESULTS AND DISCUSSION
In the first stage, the service team identified the business processes that had been carried out by
"Dapoer Tania". Identify problems starting from marketing methods, existing product innovation, and e- procurement implementation. This AKM is carried out by focusing on MSME e-procurement implementation activities by identifying criteria for determining suppliers electronically including product quality, delivery, service, price, responsiveness, reputation and guarantee. At this stage, the information needs of "Dapoer Tania" were also identified. Information needs in this service activity are limited to the company's internal needs to obtain information related to electronic procurement of goods and services.
In the second stage, capacity building activities were carried out regarding product innovation and product packaging, market strengthening, and product marketing methods. The training was carried out by introducing strategies and benefits obtained from implementing the e-procurement system in MSMEs.
In the third stage, assistance is provided in creating SOPs in the company which leads to an e- procurement system and the introduction of an e-procurement system. Assistance is provided so that owners and employees know how to implement systems in MSME companies in a standardized and structured manner. Next, an evaluation is carried out to determine the success of this activity which can be seen from the following indicators:
1. Implementation of a training program for MSME e-procurement implementation activities by
13 identifying criteria
2. Implementation of assistance in creating MSME SOPs
Making Standard Operating Procedures (SOP) in "Dapoer Tania" produces Standard Operating Procedures (SOP) for stock control activities and product sales. Stock control SOPs consist of goods procurement SOPs, goods receipt SOPs, and goods disbursement SOPs. Standard Operating Procedure (SOP) is created using a flowchart format and hierarchical steps to make it easier for users to understand the content and workflow of the Standard Operating Procedure (SOP). However, because "Dapoer Tania"
has a very simple organizational structure, the creation of a Standard Operating Procedure (SOP) for stock control and product sales is adjusted to the company's conditions. Therefore, in this Standard Operating Procedure (SOP), the parties involved are the Owner, sales administration department, Warehouse Department, and CSO.
14
Owner Warehouse Suppliers
Start
TellWarehouse section that there will be goods entering the
warehouse
A
Travel document Note
& P.O Credit
Signing the news program
2 1Note Travel document Credit
& P.O
B
Prepare a room as a storage place for incoming goods.
Receive goods with travel documents and Travel P.O
document
& P.O
Match the quantity and specifications of goods with travel documents
& POand check the quality
Order matched and YES good quality?
NO
Travel documentCreate credit notes
& POs for shortages/
error/damage
Note goods
Credit
Create event minutes goods receipt
A according to the condition of the goods
and save it as an archive
Record goods transactionsenter inventory records
Arrange items received neatlyproduct groups
and specifications
Sending goodsorder along with travel
letter and PO Travel
document
& P.O
B
1Note Travel document
& P.O Credit
Finished
Start
Purchase orders
Order in accorda
Purchase orders
YE S
Purchase orders NO
Finishe d Purchase
orders Place orders for goods
by sending purchase orders to suppliers Sign the goods order list
(purchase order) Check the list of
goods orders (purchase orders) from the Warehouse
Department
Create a list of goods orders (purchase orders).
Checking stock of goods through the inventory
database.
Ask the Warehouse Department to correct the purchase
order
Figure 1 Flowchart of SOP for Procurement of Goods
Figure 2 Flowchart of Goods Receipt SOP
15 Figure 3 Flowchart of SOP for Releasing Goods
3. MSMEs are able to implement an e-procurement system. When "Dapoer.Tania"
can implement the e-procurement process well and consistently, administrative processes can be carried out more quickly, accurately and cheaply.
CONCLUSION
E-procurementor e-procurement and Supply Chain Innovation has enabled more flexibility in responding to market changes and improving the performance of companies' supply chains.
"Dapoer.Tania" includes e-procurement, this is because almost all processes use electronic systems, especially in procurement. E-procurement has had a positive impact on "Dapoer.Tania" because it makes it easier to market the products offered. Although there are always challenges, one of which is the large number of competitors who have the same product. However, this is used as motivation for
"Dapoer.Tania" to continue to innovate. Apart from that, good use of e-procurement can be an advantage for the business to be able to compete with others.
REFERENCES
Fernandes, T., & Vieira, V. (2015). Public e-procurement impacts in small- and medium-enterprises. International Journal of Procurement Management, 8(5), 587–607.
Gunasekaran, A., McGaughey, R. E., Ngai, E. W. T., & Rai, B. K. (2009). E-Procurement adoption in the Southcoast SMEs. International Journal of Production Economics , 122(1), 161–175.
Olatunji, S. O., & Adeniyi, O. (2021). Perspectives on The Benefits of Eprocurement to the Nigerian Construction Industry. In Journal of Contemporary Research in the Built Environment (Vol. 5).
Sign the DO
Check DO
Return the DO to the Warehouse Department for repair Hand over the goods to the courier
OwnerWarehouse Section Start Create DO based on order recap DO NO DO DO DO it already Correct?
Record goods release transactions in stock records in accordance with DO YE S Finishe dDO
