Design of digital automation system for service provider selection in PT XYZ

The procurement system at PT XYZ faces several issues such as low process efficiency, lack of transparency, and non-objective decision-making.In the implementation of procurement activities, PT XYZ utilizes technology and follows best practices by designing, building, and implementing an e-procurement application.E-procurement was implemented in 2015; however, its usage at PT XYZ has not been fully optimized to date.The evaluation of bids from providers is still done manually, resulting in longer decision-making times and subjectivity in the selection of procurement winners.This research aims to design a digitalization process for selecting service provider winners.It is expected to assist all stakeholders in the service provider selection process through automation, reducing the risk of errors caused by the current manual data checking and entry processes.Moreover, it aims to make the selection process more objective, leading to the procurement of service providers with good quality and pricing.The digitalization design in this research begins with an analysis of the current system model and conditions, followed by designing improvements to the business process and the decision-making process for the selection of service providers.Subsequently, the development of digitalization design includes identifying the documents to be digitized, identifying data from each digitized document, designing the digitization format of the documents, and the digitization process for these documents.Next is the design of the information system and the digitalization prototype devices to realize the previously created digitization design.The automation in selecting winners based on the digitalization of service provider selection utilizes Optical Character Recognition (OCR) tools.The result of this research is a prototype for the digitization of the selection of service providers at PT XYZ.Testing the digitization prototype was conducted using real data from the service procurement process at PT XYZ to evaluate the system's performance in executing all commands requested by the system users.The test results indicate that the designed digitization is capable of executing all procedures used in the service provider selection process.The digitization design has undergone verification, validation, and testing processes, making it ready for implementation to support the selection of service providers for PT XYZ.This system can reduce the risk of errors in supplier data input and enhance the speed and accuracy of document verification, as well as the selection of service provider winners.