Improving the Efficiency of Raw Material Purchasing Planning in The Procurement Section, Logistics Department. Case Study: An Automotive Parts Manufacturer in Amata City Chonburi Industrial Estate, Chonburi Province

Abstract

The research aimed to achieve two objectives: 1) to analyze the process of raw material purchasing planning and 2) to enhance its efficiency of raw material purchasing planning. The investigation revealed discrepancies between the recorded raw material inventory in the SAP system and the actual count. That led to errors in raw material purchasing planning, resulting in insufficient raw materials for production, causing the production line to halt. To address this issue, the researchers collected data on the purchasing planning process before implementing improvements over two months. It was discovered that the production line had to stop 15 times due to raw material shortages. Subsequently, the researchers utilized Microsoft Excel to monitor raw material quantities and track their movement. It allowed for better oversight of inventory levels and enabled proactive measures to address potential shortages. As a result of implementing the Microsoft Excel program, the number of production line stoppages due to raw material shortages decreased from 15 times to 3 times, representing an 80% reduction. This improvement can effectively mitigate the problem of inadequate raw materials for production and enhance the efficiency of raw material procurement planning for parts.