Analysis of Vendor Performance

Oct 13, 2025 by thesweetdesigns.com 110 views

Introduction

PT. Wijaya Karya Beton is a leading company in the precast concrete industry, utilizing a production-based model to cater to the growing demands of the market. The company relies heavily on various raw materials, including cement, sand, split stone, and reinforcing materials such as PC bars, PC Wire, PC Strand, and Sambung Plate. The accuracy of shipping and material quality is crucial in the production process, as any incompatibility can result in customer complaints and increased production costs. Therefore, the selection of the right vendor becomes a vital aspect in maintaining smooth production and maximizing profits.

Background of the Study

The purpose of this study is to design a performance appraisal system for vendors that provide connecting plate materials, utilizing the Smart (Strategic Management Analysis and Reporting Technique) approach. This system aims to reduce delays and defective products in the procurement of materials, ultimately enhancing the overall efficiency of the production process. The Analytic Hierarchy Process (AHP) method is employed as a management tool in the procurement of materials to make this system a standard in the company.

Methodology

In designing a performance appraisal system, several dominant factors need to be considered, including quality, shipping, cost, responsiveness, and flexibility. This study demonstrates that quality has the highest weight with a percentage of 42.26%, followed by shipping (19.71%), costs (16.70%), responsiveness (12.53%), and flexibility (8.81%). Historical data from the vendor over the past three months provides an overview of the ability of each vendor to meet the order of PT. Wijaya Karya Beton, related to delays and defective products.

Analysis of Vendor Performance

From the analysis conducted, the Supplier of Sinar Maju Perkasa stands out as the best in terms of shipping, with a delay rate of only 13.81%. Conversely, Bohlindo shows the highest delay level, which is 26.36%. This is a significant finding, as consistency in timely delivery contributes directly to the smooth production. On the other hand, for defective products, Sinar Maju Perkasa also occupies the best position with a disability rate of only 11.63%, while Bohlindo recorded the highest number of 29.07%.

Importance of Historical Data Analysis

Effective vendor performance appraisal system is very important for companies such as PT. Wijaya Karya Beton, where orders-based production requires stability in material supply. Using the smart method allows management to have a clear framework in evaluating supplier performance. By exploring every factor, the company can identify areas that need improvement and at the same time provide feedback to suppliers.

Benefits of the Performance Appraisal System

The importance of historical data analysis cannot be underestimated. The data not only shows past performance, but also projects the possibility of challenges that will be faced in the future. Thus, management can make more informed decisions and reduce risks related to late delivery and product quality.

Impact on Production Chain

In the procurement of the connecting plate material, every decision taken has an impact on the entire production chain. A transparent and accountable system in vendor assessment not only improves supplier performance but also builds better relationships between companies and business partners. Success in establishing and upholding this performance appraisal standard has the potential to provide significant competitive benefits for PT. Wijaya Karya Concrete in an increasingly competitive industry.

Conclusion

Thus, the design of this performance appraisal system is not only for the internal interests of the company, but also to guarantee customer satisfaction and better operational sustainability. This is an important step towards improving product quality and efficiency in all operational aspects.

Recommendations

Based on the findings of this study, the following recommendations are made:

PT. Wijaya Karya Beton should implement the performance appraisal system for vendors that provide connecting plate materials, utilizing the Smart approach.
The company should use the Analytic Hierarchy Process (AHP) method as a management tool in the procurement of materials to make this system a standard in the company.
The dominant factors that need to be considered in designing a performance appraisal system, including quality, shipping, cost, responsiveness, and flexibility, should be given due attention.
Historical data from the vendor over the past three months should be analyzed to provide an overview of the ability of each vendor to meet the order of PT. Wijaya Karya Beton, related to delays and defective products.

By implementing these recommendations, PT. Wijaya Karya Beton can improve the efficiency of its production process, reduce delays and defective products, and ultimately enhance customer satisfaction and operational sustainability.

Q: What is the purpose of the performance appraisal system for vendors that provide connecting plate materials?

A: The purpose of the performance appraisal system is to reduce delays and defective products in the procurement of materials, ultimately enhancing the overall efficiency of the production process.

Q: What is the Smart approach used in the performance appraisal system?

A: The Smart approach is a Strategic Management Analysis and Reporting Technique used to evaluate supplier performance and make informed decisions.

Q: What are the dominant factors considered in designing a performance appraisal system?

A: The dominant factors considered in designing a performance appraisal system include quality, shipping, cost, responsiveness, and flexibility.

Q: What is the weightage of each factor in the performance appraisal system?

A: The weightage of each factor is as follows: quality (42.26%), shipping (19.71%), costs (16.70%), responsiveness (12.53%), and flexibility (8.81%).

Q: How does the performance appraisal system benefit PT. Wijaya Karya Beton?

A: The performance appraisal system benefits PT. Wijaya Karya Beton by improving supplier performance, reducing delays and defective products, and enhancing customer satisfaction and operational sustainability.

Q: What is the importance of historical data analysis in the performance appraisal system?

A: Historical data analysis is important in the performance appraisal system as it provides an overview of the ability of each vendor to meet the order of PT. Wijaya Karya Beton, related to delays and defective products.

Q: How does the performance appraisal system impact the production chain?

A: The performance appraisal system impacts the production chain by improving supplier performance, reducing delays and defective products, and enhancing customer satisfaction and operational sustainability.

Q: What are the recommendations made based on the findings of this study?

A: The recommendations made based on the findings of this study include implementing the performance appraisal system for vendors that provide connecting plate materials, utilizing the Smart approach, and using the Analytic Hierarchy Process (AHP) method as a management tool in the procurement of materials.

Q: What are the benefits of implementing the performance appraisal system?

A: The benefits of implementing the performance appraisal system include improving supplier performance, reducing delays and defective products, and enhancing customer satisfaction and operational sustainability.

Q: How can PT. Wijaya Karya Beton ensure the success of the performance appraisal system?

A: PT. Wijaya Karya Beton can ensure the success of the performance appraisal system by implementing the system consistently, providing feedback to suppliers, and continuously monitoring and evaluating supplier performance.

Q: What are the potential challenges in implementing the performance appraisal system?

A: The potential challenges in implementing the performance appraisal system include resistance to change from suppliers, lack of data and information, and difficulty in evaluating supplier performance.

Q: How can PT. Wijaya Karya Beton overcome the potential challenges in implementing the performance appraisal system?

A: PT. Wijaya Karya Beton can overcome the potential challenges in implementing the performance appraisal system by providing training and support to suppliers, collecting and analyzing data and information, and continuously monitoring and evaluating supplier performance.