Analysis of E-Procurement Implementation in Effectiveness Procurement of Goods and Services: (Case Study at PT. KERETA API INDONESIA (PERSERO))

International Journal of Entrepreneurship and Business Management Vol.1 , No.2 , 2022 pp. 153-168 e-ISSN: 2808-716X Analysis of E-Procurement Implementation in Effectiveness Procurement of Goods and Services (Case Study at PT. KERETA API INDONESIA (PERSERO)) 1,2, Ratih Hendayani 1, Putri Aulia Fariha Fauzi2 Telecommunication and Informatics Business Management, Faculty of Economics and Business, Telkom University 1 2 ; DOI: https://doi.org/10.54099/ijebm.v1i2.368 ARTICLE INFO Article history: Received: 16 November 2022 Revised: 29 November 2022 accepted:30 November 2022 Keywords: Procurement of Goods, Electronic Procurement, Procurement of Services, and Effectiveness ABSTRACT The use of technology in the business industry in Indonesia provides opportunities for encouraging the industry to optimize technological developments that are getting better. The industry releases new technology to compete with its competitors. One of the strategies that can be implemented to optimize the supply chain is through the procurement of goods and services (PGS). This technology support allows companies to carry out PGS processes electronically. The research objective of this study is to determine how the relationship system specification, implementation management, governance structure, total acquisition cost, and organization characteristics to eprocurement effectiveness in implementation at PT. Kereta Api Indonesia (Persero). The analysis technique used is descriptive analysis with a quantitative method of multivariate analysis using SEM ( Structural Equation Modeling ), namely Partial Least Square (PLS) with SmartPLS software. The result of this study shows that the variables which have no effect are system specifications with implementation management, implementation management with changes in government structures, changes in government structures with e-procurement effectiveness, organizational characteristics, implementation management can mediate specification system with governance structure, implementation management can mediate specification system with total acquisition cost, implementation management can mediate specification system with organizational characteristics, government structure can mediate implementation management, and organizational characteristics can mediate implementation management with e-procurement effectiveness at PT. Kereta Api Indonesia (Persero). This research recommends PT. Kereta Api Indonesia (Persero) to continue to improve and maintain the eprocurement system so that it can continue to improve systems that facilitate relationships between companies and vendors. This work is licensed under a Creative Commons Attribution- Non Commercial 4.0 International License. INTRODUCTION © 2022 ADPEBI Publications. All Rights Reserved. 153 Ratih Hendayani & Putri Aulia Fariha Fauzi; Analysis of E-Procurement Implementation... Transportation is one of the supports for the community in their daily activities. The development of transportation slowly continues to evolve from time to time starting from the form of transportation, features, and use of fuel. The development of transportation is running fast because it is entering the era of industrialization with increasing transportation innovations starting from the application of transportation using a steam engine for rail and ship transportation, then followed by the invention of engines using fuel and electricity transportation (Probowo, 2020). The development of transportation which continues to grow can encourage economic activity and development. Users of the land, sea and air transportation from 2015 to 2019 continue to increase. The number of motor vehicle users has increased quite significantly, namely 6.13 percent per year (2019 Land Transportation Statistics, 2020). Departures using airplane transportation for overseas destinations have increased in 2019 by 4.53 percent compared to 2018 (Air Transportation Statistics 2019, 2020). In addition, the use of sea transportation experienced an increase in departures in 2019 by 15.89 percent compared to 2018 (Sea Transportation Statistics 2019, 2020). The cause of the rapid use of transportation is that people need mobility that is efficient, practical, and inexpensive. Public transportation is a way that people use to get appropriate transportation needs. One of the public transportation used by the community is the train. Railway transportation is one of the most effective forms of mass transportation, consisting of locomotives and carriages. Several countries are trying to make maximum use of the means of transportation with the main transportation, namely land transportation both within cities, between cities, and between countries. Currently, transportation is experiencing developments that support in terms of effectiveness and efficiency by using technology, where one of the land transportation companies continues to grow both infrastructure and facilities are trains. The development of railroad companies was followed by the application of electronic systems such as e-ticketing, e-boarding, e-kiosk, e-library, eprocurement, e-recuirement, and others. The existence of this electronic system can facilitate internal and external mobility of companies, especially train users (KAI Company Profile, 2021). In the growth of technology, it is not only individuals who want to fulfill the need for the technology but companies, both private and government, also need technology in the company's operations. Currently, technology is an incline in the progress of a company because the technology that combines computers with telecommunications has become one of the revolutions in the field of information systems (Ervina, 2019). One of the information systems that is starting to evolve and be used by companies is the procurement system for goods and services (Hartono, 2012). A good system of procurement of goods and services is the most important thing to give birth to the principles and objectives of the procurement of goods and services that are effective, efficient, transparent, open, competitive, fair, and accountable (Putera, 2015). There are problems when carrying out the process of procurement of goods and services such as problems in the process of preparing for the procurement of goods and services starting from the Provisional Estimated Price (PEP) which is not following market prices, there is no clear documentation, incomplete document filling, and there are additions costs which can become legal issues (Administrator, 2016). According to Daryaatmaka (2019), the Goods and Services Procurement System can be more effective in terms of time and company efforts by implementing an e-procurement system. In addition, electronic systems in the Procurement of Goods and Services can also facilitate the management of information technology services such as facilitating the analysis of reports on the procurement of goods and services, saving company op (...truncated)