EVALUATING SAP IMPLEMENTATION AS A SUPPLY CHAIN MANAGEMENT SYSTEM AT PT ADHI KARYA: A CASE STUDY OF PROCUREMENT EFFICIENCY IN CONSTRUCTION PROJECTS

Abstract

Procurement activities play a critical role in determining the success of construction projects in terms of time, cost, and quality performance. PT Adhi Karya (Persero) Tbk. has implemented SAP as part of its supply chain digitalization strategy, particularly through the Material Management (MM) and Project System (PS) modules. However, in practice, several procurement activities are still conducted manually and remain insufficiently integrated, especially in tendering and contract issuance processes. This study aims to evaluate the effectiveness of SAP implementation in supporting procurement efficiency and quality within construction projects at PT Adhi Karya. A descriptive quantitative approach was employed, utilizing primary data collected through questionnaires and secondary data derived from procurement cycle time records in 2025. The results indicate that most procurement processes require more than 10 days from the e-Auction stage to contract issuance, which significantly exceeds the international benchmark of an ideal cycle time of ≤5 days. These findings reveal gaps in system integration that may adversely affect procurement efficiency. The study recommends strengthening the integration between SAP and the e-Procurement platform, as well as accelerating the digitalization of post-auction procurement stages to enhance overall procurement performance.