Abstract

PT Usaha Gedung Mandiri is a construction company that focuses on services related to building needs, from construction to maintenance and operational requirements. The company has problems with the purchasing administration process, which is still manual. This creates uncertainty in the procurement process due to inconsistent vendor delivery times. Another issue that arises concerns the impact on the company's profits. One cause is the lack of a classification system for each item into multiple categories based on value and risk level. This can lead to an increase in inventory value and uncontrolled item turnover rates. Therefore, a strategy for classifying goods by value and risk level is needed, and it should also aim to develop an appropriate collaboration contract strategy with vendors. The Supply Positioning Model method will classify goods into four quadrants: routine, critical, bottleneck, and leverage based on grouping results from three aspects: profit impact with ABC Analysis, Supply Opportunity, and Inventory Risk. Then, a root cause analysis is conducted using the 5 Whys Diagram to determine appropriate recommendations to address the root problems in the procurement process.