Business Process in Procurement

(BPP)

Universitas Bina Darma

Palembang
2020
 Purposes
• Memperkenalkan sistem pembelajaran BPP
– Mode Pembelajaran
– Komponen Penilaian
– Score Penilaian
– Sumber Materi Ajar
– Dll.
• Mengetahui lingkup mata kuliah BPP
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 2
 Agenda
Lecturer & Course
01 Unit lectures

Sources
02 Slides, Blogs, E-learning, Social Meida

Assessment & Rules

Table of 03 Activities and Components
Contents
Evaluation Score
04 Mark

Course Introduction
05 BPP Overview

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 3

 Lecturer Information
01 02
Associate Professor Editor & Reviewer
Computer Science &
Journals & Conferences
Information Systems

Coordinator Courses
Enterprise Systems 06 03 HCI, KMS, CRM (Coordinator)
Research Group SCM, SA&D, IS, DB, BPP, BP-
HCM, ERP, etc.
Consultant
Mentor
Academic, Research, Community
Publons, New Zealand
05 04

Leon A. Abdillah
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 4
 List of Courses Taught
Systems
Enterprise Research
01 Analysis &
Design
02 Systems 03 Methods

Human- Knowledge
Human Capital
04 Computer
Interaction
05 Management
Systems
06 Management

Algorithms,
Supply Chain Business
07 Programming,
Data Structures
08 Management 09 Process

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 5

 Unit Lectures
No Content No Content
1 Introduction 9 Order Monitoring
2 Procurement Life Cycle 10 Goods Receipt
3 Demand Determination 11 Invoice Verification
4 Source Determination 12 Payment Processing
5 Daily Exam 13 Tools Procurement
6 Supplier Selection 14 Public & International Procurement
7 Purchase Order Processing 15 Presentations
8 Mid Exam 16 Final Exam

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 6

 Learning Media & Sources
Moodle Blogs
Moodle  • blog.binadarma.ac.id/mleonaa
elearning.binadarma.ac.id  Teaching | Business Process
in Procurement
• leonabdillah.wordpress.com |
Teaching | Business Process in
Procurement

Facebook WhatsApp

BPP 2020-2021 Ganjil WhatsApp Group of BPP

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 7

 Assessment Components
Class Activities
Quiz & Presence
01 15%
Middle Exam
Mid Test
02 20%
Reports
Tasks & Presentation
03 25%
Final Exam
Final Test
04 40%
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 8
 Course Rules
01 Registered in KRS 04 Honest

02 Attendance >= 80% 05 Academic Rules

03 Discipline < 15 min late 06 Schedule

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 9

 Evaluation Score

5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

A A A A
B B B
C C C
D D D
E E E E E E E
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 10
 Procurement Overview
• Overview SCM & Logistics
• Procurement Definition?
• What does the discipline of Procurement?
• Why study Procurement?

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 11

 Background
• Today’s business environment is driven by the following (Keith, Vitasek, Manrodt &
Kling, 2016):
1. Globalization that is accelerating market interconnectedness.
2. A business environment challenged with increasing volatility and risk, including
international terrorism, sovereign debt defaults, natural disasters, and port slowdowns
caused by labor disputes and inadequate transportation infrastructure
3. An increasingly fast consumer-driven society that demands more agile and flexible supply
chains
4. The continued evolution of a service economy that is shifting to strategic, not just tactical,
outsourcing
5. A shift in purchasing skills and processes to create value, not simply procure goods and
services
6. The expansion and introduction of capabilities of cloud computing in procurement
activities

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 12

 Logistics
• Logistik adalah tugas mengelola 2 (dua) arus
utama(Harrison & Hoek, 2008):
1. Material flow barang fisik dari pemasok melalui
distribusipusat ke toko;
2. Information flow data permintaan dari pelanggan
akhir kembali ke pembelian dan ke pemasok, dan
data pasokan dari pemasok ke pengecer, sehingga
aliran material dapat direncanakan dan dikendalikan
secara akurat.

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 13

 SCM & Logistics
• Rantai pasokan (supply chain), yang juga disebut
sebagai jaringan logistik (logistics network),
terdiri dari pemasok, pusat manufaktur, gudang,
pusat distribusi, dan gerai ritel, serta bahan baku,
inventaris dalam proses, dan produk jadi yang
mengalir di antara fasilitas (Simchi-Levi, Kaminsky
& Simchi-Levi, 2004).
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 14
 Supply Chain
• A supply chain is a network of partners who
collectively convert a basic commodity
(upstream) into a finished product
(downstream) that is valued by end-
customers, and who manage returns at each
stage (Harrison & Hoek, 2008).

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 15

 Logistics Network

(Simchi-Levi, Kaminsky & Simchi-Levi, 2004)

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 16
 SCM
• Supply Chain Management (SCM) fokus pada
mata rantai pasokan dari hulu ke hilir untuk
mencapai tingkat efisiensi dan efektivitas
perusahaan yang optimal dan maksimal.

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 17

 Supply Chain Network Context
•

(Harrison & Hoek, 2008)

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 18
 SCM & ERP
• Enterprise Resource Planning (ERP) menjadi simpul
integrasi semua proses bisnis enterprise modern (Abdillah,
2020).
• The ERP system for a manufacturing organization typically
encompasses SCM activities and manages the flow of
materials, information, and finances. Manufacturing ERP
systems follow a systematic process for developing a
production plan that draws on the information available in
the ERP system database (Stair & Reynolds, 2018).

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 19

 Enterprise Application Architecture
•

(O’Brien & Marakas, 2010)

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 20
 Procurement
• Procurement is a pro-active, strategic corporate
activity to ensure a continuing supply of goods
and services to enable world-class organisational
performance.
• Procurement manages supply chain risks through
the effective negotiation of contracts, cost and
price models, quality and other essential supply
characteristics.
(Lysons & Farrington, 2016)

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 21

 Procurement
• Refers to the raw materials, component parts,
and supplies bought from outside
organizations to support a company’s
operations

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 22

 Procurement
• Procurement refers to the purchasing of goods
and services that are required as inputs to the
primary activities.
• Procurement receives, approves, and
processes requests for goods and services
from the primary activities and coordinates
the purchase of those items.
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 23
 Value Chain Framework

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 24

 Purchasing
• Strategic sourcing comprises the process of planning
supply, selecting suppliers and contracting them in
order to establish the potential for supply.
• Operative procurement encompasses the ordering of
material and services, ensuring its delivery and, finally,
activating the payment, thus executing the order.
• Strategic sourcing and operative procurement together
represent purchasing. (Zijm, Klumpp, Heragu & Regattieri, 2019)
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 25
 Purchasing

(Zijm, Klumpp, Heragu & Regattieri, 2019)

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 26

 Why Study Procurement
• Mendukung tujuan dan sasaran organisasi
• Mengelola proses pembelian secara efektif dan
efisien
• Mengelola basis pasokan
• Mengembangkan hubungan yang kuat dengan
kelompok fungsional lainnya
• Mendukung kebutuhan operasional
29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 27
 Conclusion
• The Procurement discipline includes the study of:
– Logistics, Supply Chain Management
– Procurement
– Bisnis, Ekonomi, Manajemen, dan Sistem Informasi
• Procurement is worth studying because it aligns
both human capital and intellectual capital

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 28

 Homework
1. Prepare your SocialMedia ID (FaceBook)
2. Set a group discussion consist of 2-4 students for small class (<=20), 5-6
students for medium class (21-35), or 7-8 students for large class (>36)
3. Create an account in CloudPrepare your blog using WordPress
[yourname], create a PAGE/laman of “BPP” or “Business Process in
Procurement”.
4. Create a cloud repository (DropBox)
5. Develop your team project theme based on the information given from
several sources (journals, conference proceedings, books, or master
theses). You may use one of these sources: a) GOOGLE SCHOLAR
(http://scholar.google.com/) or b) MICROSOFT ACADEMIC SEARCH
(http://academic.research.microsoft.com/)

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 29

 Assignment
• Assignment 01
– Browse at least 5 (five) definitions of Procurement
(from Books, Journal Articles, etc.).
– Save your assignment in word as
• “BPP-2020-2021-01Ganjil-Class-01-Group/Name”
– Store it in DropBox, paste the URL from DropBox
into the submitted URL!

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 30

 References
Abdillah, L. A. (2017). Business Modeling - Supply Chain Management Computer Science for Education. Palembang: Bina Darma
University.
Abdillah, L. A. (2018). Supply Chain Management Computer Science and Information Systems. Palembang: Universitas Bina Darma.
Abdillah, L. A. (2020). Model Sistem Umum Perusahaan (Enterprise General Systems Model). In Sistem Informasi Managemen
(Management Information Systems). Medan: Yayasan Kita Menulis.
Ahmed, A. (2014). The SAP Materials Management Handbook. Boca Raton, FL, USA: CRC Press (Taylor & Francis Group).
Baily, P., Farmer, D., Crocker, B., Jessop, D., & Jones, D. (2015). Procurement Principles and Management (11th ed.). Harlow, U.K.:
Pearson Education Limited.
Baltzan, P. (2019). Business Driven Information Systems (6th ed.). New York, USA: McGraw-Hill Education.
CIPS. (2020). Procurement and Supply Cycle. Retrieved October 6, 2020, from https://www.cips.org/knowledge/procurement-
topics-and-skills/procurement-and-supply-cycle/
Davis, R. A. (2016). Demand-Driven Inventory Optimization and Replenishment (2nd ed.). New Jersey, USA: John Wiley & Sons, Inc.
Harrison, A., & Hoek, R. Van. (2008). Logistics Management and Strategy: Competing through the supply chain (3rd ed.). Essex,
England: Prentice Hall (Pearson Education Limited).
Keith, B., Vitasek, K., Manrodt, K., & Kling, J. (2016). Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing
Business Models for Modern Procurement. https://doi.org/10.1057/9781137552204

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 31

Khaled, A. A., Paul, S. K., Chakraborty, R. K., & Ayuby, S. (2011). Selection of Suppliers through Different Multi-Criteria Decision
Making Techniques. Global Journal of Management and Business Research, 11(4), 1–12. Retrieved from
http://journalofbusiness.org/index.php/GJMBR/article/view/479
Lysons, K., & Farrington, B. (2016). Procurement and Supply Chain Management (9th ed.). Harlow, U.K.: Pearson Education
Limited.
Mukherjee, K. (2017). Supplier Selection: An MCDA-Based Approach. In J. Kacprzyk (Ed.), Studies in Systems, Decision and Control.
New Delhi, India: Springer (India) Pvt. Ltd.
Murphy, K. (2017). What is the Procurement Management Process? Retrieved from
https://www.purchasecontrol.com/blog/procurement-process-cycle/
Murphy, K. (2020). Invoice Verification Process And How To Improve It. Retrieved from
https://www.purchasecontrol.com/blog/invoice-verification-process/
Musaad O, A. S., Zhuo, Z., Siyal, Z. A., Shaikh, G. M., Ali Shah, S. A., Solangi, Y. A., & Musaad O, A. O. (2020). An integrated multi-
criteria decision support framework for the selection of suppliers in small and medium enterprises based on green
innovation ability. Processes, 8(4). https://doi.org/10.3390/PR8040418
O’Brien, J. A., & Marakas, G. M. (2010). Introduction to Information Systems (15th ed.). New York, USA: McGraw-Hill Companies,
Inc.

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 32

O’Brien, J. (2014). Supplier Relationship Management: Unlocking the hidden value in your supply base. London, UK: Kogan Page
Limited.
Razak M., A. (2017). SAP Invoice Verification. Retrieved from https://erproof.com/mm/free-training/sap-invoice-verification/
SAP AG. (2006). SAP01 : Fundamentals. Walldorf, Germany: SAP AG.
Simchi-Levi, D., Kaminsky, P., & Simchi-Levi, E. (2004). Managing the Supply Chain: The Definitive Guide for the Business
Professional. New York, USA: McGraw-Hill Companies, Inc.
Schoenherr, T. (2019). The Evolution of Electronic Procurement. Cham, Switzerland: Springer International Publishing AG.
Stadtler, H., & Kilger, C. (Eds.). (2008). Supply Chain Management and Advanced Planning: Concepts, Models, Software, and Case
Studies (4th ed.). https://doi.org/10.1007/978-3-662-04215-1
Stair, R. M., & Reynolds, G. W. (2018). Principles of Information Systems (13th ed.). Boston, MA, USA: Cengage Learning.
Valacich, J., & Schneider, C. (2018). Information Systems Today : Managing in the Digital World (8th ed.). New York, USA: Pearson
Education, Inc.
Weigel, U., & Ruecker, M. (2017). The Strategic Procurement Practice Guide: Know-how, Tools and Techniques for Global Buyers.
Cham, Switzerland: Springer International Publishing AG.
Zijm, H., Klumpp, M., Heragu, S., & Regattieri, A. (2019). Operations, Logistics and Supply Chain Management.
https://doi.org/10.1007/978-3-319-92447-2_3

29/09/2020 Leon Abdillah - BPP - 01 Introduction to BPP 33