An application of Lean for procurement process: A case study of ABC Company

The objective of this research is to improve efficiency in the procurement process of the ABC case
study and review the current purchasing process for designing a new procurement process by applying the
Lean concept to the analysis of problems and obstacles that arise in the work process. The research process begins with collecting data using focus group methods to model and map the current procurement process flow and analyze the waste that occurs in the process to improve the design of the new purchasing process by applying the Lean concept. The results of the research found that the new procurement process can eliminate non-value-added steps and waste in the process. as well as able to combine procedures to speed up and increase operational efficiency. The results were obtained from the application of the Lean concept to improve the ordering process in this study. The workflow can be reduced to 9 steps (formerly 16 steps) after the contract agreement between the case study company and the supplier has been entered. and can reduce the operating time to 88 minutes (from 4,354 minutes) or 97.97 percent.