p–ISSN: 2723 - 6609 e-ISSN: 2745-5254
Vol. 5, No. 11, November 2024 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4963
Increasing the Effectiveness and Efficiency of Local MSME
Consignment Cooperation with the Portal Vendor System
Fredy Rizaldi1*, Agus Munandar2
Universitas Esa Unggul, Indonesia
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: vendor portal
system, consignment
collaboration, local
MSME, effectiveness,
efficiency.
MSMEs have an important role in the Indonesian economy,
but they face challenges in adapting to the digital era and
establishing effective collaborations with retail companies.
This study aims to develop and evaluate a vendor portal
system that can overcome this challenge by increasing the
effectiveness and efficiency of consignment cooperation
between local MSMEs and retail companies. Using a
qualitative descriptive method, this study analyzes the
impact of the implementation of the vendor portal system on
the consignment business process, including operational
efficiency, transparency, and collaboration between the two
parties. The results show that the vendor portal system has
succeeded in improving operational efficiency, providing
real-time transparency of sales and inventory data, and
facilitating better communication between MSMEs and
retail companies. In addition, this system also supports the
government's program in encouraging MSMEs to "Go
Digital" and "Upgrade Class".
Introduction
Micro, Small, and Medium Enterprises (MSMEs) have a crucial role in the
Indonesian economy, contributing significantly to GDP and labor absorption. However,
the COVID-19 pandemic has had a very detrimental impact on the MSME sector, causing
many businesses to go out of business and reduce the contribution of MSMEs to GDP
(Sembiring, 2021).
To overcome the impact of the pandemic and encourage economic recovery, the
government has launched various policies, including the "Go Digital" and "Upgrade"
programs that aim to accelerate the digital transformation of MSMEs (Kominfo, 2022).
Meanwhile, the retail industry continues to experience rapid growth, driven by changing
consumer behavior that is increasingly accustomed to shopping online and offline. (Bahri,
2020). This opens up opportunities for MSMEs to expand market reach and increase sales
through collaboration with retail companies.
However, collaboration between MSMEs and retail companies often faces
obstacles, especially in terms of effectiveness, efficiency, and transparency of the
Vol. 5, No. 11, November 2024 http://jist.publikasiindonesia.id/
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4963
Increasing the Effectiveness and Efficiency of Local MSME
Consignment Cooperation with the Portal Vendor System
Fredy Rizaldi1*, Agus Munandar2
Universitas Esa Unggul, Indonesia
Email: [email protected]
*Correspondence
ABSTRACT
Keywords: vendor portal
system, consignment
collaboration, local
MSME, effectiveness,
efficiency.
MSMEs have an important role in the Indonesian economy,
but they face challenges in adapting to the digital era and
establishing effective collaborations with retail companies.
This study aims to develop and evaluate a vendor portal
system that can overcome this challenge by increasing the
effectiveness and efficiency of consignment cooperation
between local MSMEs and retail companies. Using a
qualitative descriptive method, this study analyzes the
impact of the implementation of the vendor portal system on
the consignment business process, including operational
efficiency, transparency, and collaboration between the two
parties. The results show that the vendor portal system has
succeeded in improving operational efficiency, providing
real-time transparency of sales and inventory data, and
facilitating better communication between MSMEs and
retail companies. In addition, this system also supports the
government's program in encouraging MSMEs to "Go
Digital" and "Upgrade Class".
Introduction
Micro, Small, and Medium Enterprises (MSMEs) have a crucial role in the
Indonesian economy, contributing significantly to GDP and labor absorption. However,
the COVID-19 pandemic has had a very detrimental impact on the MSME sector, causing
many businesses to go out of business and reduce the contribution of MSMEs to GDP
(Sembiring, 2021).
To overcome the impact of the pandemic and encourage economic recovery, the
government has launched various policies, including the "Go Digital" and "Upgrade"
programs that aim to accelerate the digital transformation of MSMEs (Kominfo, 2022).
Meanwhile, the retail industry continues to experience rapid growth, driven by changing
consumer behavior that is increasingly accustomed to shopping online and offline. (Bahri,
2020). This opens up opportunities for MSMEs to expand market reach and increase sales
through collaboration with retail companies.
However, collaboration between MSMEs and retail companies often faces
obstacles, especially in terms of effectiveness, efficiency, and transparency of the
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4964
transaction process. The lack of adequate digital platforms and integrated systems is the
main obstacle for MSMEs in maximizing the potential of this collaboration (Sebayang et
al., 2022).
MSMEs (Micro, Small, and Medium Enterprises) have a crucial role in the
Indonesian economy, contributing significantly to GDP and labor absorption. (Putra et
al., 2023). However, MSMEs often face challenges in accessing a wider market and
adapting to technological developments. The "Go Digital" and "Upgrade" programs
initiated by the government aim to overcome this challenge by encouraging MSMEs to
utilize digital technology in their business activities. (Kemenko Perekonomian, 2021).
The retail industry, on the other hand, continues to grow rapidly with the increasing
adoption of digital platforms by consumers. (Bahri, 2020) Collaboration between MSMEs
and retail companies through the consignment system offers mutually beneficial
opportunities. MSMEs can take advantage of the extensive distribution and marketing
network of retail companies, while retail companies can obtain unique and quality
products from MSMEs.
The purpose of this study is to design a vendor portal system that can increase the
effectiveness and efficiency of consignment cooperation between local MSMEs and retail
companies. In addition, this study aims to analyze the benefits obtained from the
implementation of the vendor portal system for local MSMEs and retail companies, as
well as identify challenges and solutions that may arise in its implementation. The results
of this study are expected to make a positive contribution to several parties. For local
MSMEs, this system is expected to increase effectiveness and efficiency in consignment
cooperation with retail companies, expand market reach, increase sales, strengthen
competitiveness, and provide more transparent results in consignment cooperation.
For retail companies, this system is expected to be able to increase efficiency in the
process of procurement and product curation, and potentially increase customer
satisfaction. Meanwhile, for the government, this portal vendor system can support the
"Go Digital" and "Upgrade" programs for MSMEs, help increase MSMEs' contribution
to GDP, and encourage national economic recovery.
Method
Type of Research
This study uses a qualitative descriptive approach to deeply understand the
phenomenon of consignment cooperation between local MSMEs and retail companies.
The qualitative approach was chosen because this research focuses on exploring the
meaning, experience, and perspective of the actors involved in this collaboration.
Data Collection Methods
In this study, data were collected through the following approaches:
1. Participant Observation: The researcher is directly involved in the consignment
cooperation process between local MSMEs and the retail company where the
researcher works. This observation was carried out to observe firsthand how the
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4964
transaction process. The lack of adequate digital platforms and integrated systems is the
main obstacle for MSMEs in maximizing the potential of this collaboration (Sebayang et
al., 2022).
MSMEs (Micro, Small, and Medium Enterprises) have a crucial role in the
Indonesian economy, contributing significantly to GDP and labor absorption. (Putra et
al., 2023). However, MSMEs often face challenges in accessing a wider market and
adapting to technological developments. The "Go Digital" and "Upgrade" programs
initiated by the government aim to overcome this challenge by encouraging MSMEs to
utilize digital technology in their business activities. (Kemenko Perekonomian, 2021).
The retail industry, on the other hand, continues to grow rapidly with the increasing
adoption of digital platforms by consumers. (Bahri, 2020) Collaboration between MSMEs
and retail companies through the consignment system offers mutually beneficial
opportunities. MSMEs can take advantage of the extensive distribution and marketing
network of retail companies, while retail companies can obtain unique and quality
products from MSMEs.
The purpose of this study is to design a vendor portal system that can increase the
effectiveness and efficiency of consignment cooperation between local MSMEs and retail
companies. In addition, this study aims to analyze the benefits obtained from the
implementation of the vendor portal system for local MSMEs and retail companies, as
well as identify challenges and solutions that may arise in its implementation. The results
of this study are expected to make a positive contribution to several parties. For local
MSMEs, this system is expected to increase effectiveness and efficiency in consignment
cooperation with retail companies, expand market reach, increase sales, strengthen
competitiveness, and provide more transparent results in consignment cooperation.
For retail companies, this system is expected to be able to increase efficiency in the
process of procurement and product curation, and potentially increase customer
satisfaction. Meanwhile, for the government, this portal vendor system can support the
"Go Digital" and "Upgrade" programs for MSMEs, help increase MSMEs' contribution
to GDP, and encourage national economic recovery.
Method
Type of Research
This study uses a qualitative descriptive approach to deeply understand the
phenomenon of consignment cooperation between local MSMEs and retail companies.
The qualitative approach was chosen because this research focuses on exploring the
meaning, experience, and perspective of the actors involved in this collaboration.
Data Collection Methods
In this study, data were collected through the following approaches:
1. Participant Observation: The researcher is directly involved in the consignment
cooperation process between local MSMEs and the retail company where the
researcher works. This observation was carried out to observe firsthand how the
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4965
consignment process took place, and how the portal vendor system was used, as well
as to identify problems and potential improvements.
2. In-depth Interviews: Interviews were conducted with various parties involved in
consignment cooperation, including local MSME actors, and representatives from the
company's retail, accounting, and information technology divisions. This interview
aims to explore in-depth information about the experiences, perspectives, and needs of
each party related to the consignment system and the implementation of portal
vendors.
3. Literature Studies: Literature studies are conducted to collect secondary data relevant
to this study. The literature reviewed includes scientific articles, research reports, and
government publications related to MSMEs, the retail industry, consignment systems,
and information technology. This literature study aims to strengthen the theoretical
foundation of research and provide a broader context for the phenomenon being
studied.
Results and Discussion
MSME Development
The COVID-19 pandemic has had a significant impact on the Indonesian economy,
including the MSME sector. Many MSMEs have experienced a decline in sales and even
gone out of business due to social restrictions and a decrease in people's purchasing
power. (Marginingsih, 2021). However, MSMEs also show strong resilience in facing
crises, such as what happened in the 1997/1998 economic crisis.
The Indonesian government has taken steps to support the recovery of MSMEs,
including through the "Go Digital" and "Naik Kelas" programs (Kominfo, 2022). This
program aims to encourage MSMEs to take advantage of digital technology in running
their businesses so that they can increase competitiveness and expand market reach.
On the other hand, the retail industry continues to experience growth, driven by
changing consumer behavior that is increasingly accustomed to shopping online. This
creates opportunities for MSMEs to collaborate with retail companies in marketing their
products.
The Government of Indonesia has shown a strong commitment to supporting the
recovery and growth of MSMEs, especially during and after the COVID-19 pandemic.
Various assistance programs have been launched, including the National Economic
Recovery Program (PEN) which allocates most of its budget to strengthen the MSME
sector (KemenkeuRI.go.id, 2021). This support covers various aspects, ranging from
financing assistance such as KUR and BPUM, to training and mentoring programs to
increase the capacity of MSMEs.
Digitalization has become a key factor in increasing the competitiveness of
MSMEs. Although MSMEs contribute more than 60% to Indonesia's GDP, data from the
Ministry of Cooperatives and SMEs shows that the adoption of online platforms is still
limited (Dilogo et al., 2021). Therefore, encouraging MSMEs to "Go Digital" is crucial
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4965
consignment process took place, and how the portal vendor system was used, as well
as to identify problems and potential improvements.
2. In-depth Interviews: Interviews were conducted with various parties involved in
consignment cooperation, including local MSME actors, and representatives from the
company's retail, accounting, and information technology divisions. This interview
aims to explore in-depth information about the experiences, perspectives, and needs of
each party related to the consignment system and the implementation of portal
vendors.
3. Literature Studies: Literature studies are conducted to collect secondary data relevant
to this study. The literature reviewed includes scientific articles, research reports, and
government publications related to MSMEs, the retail industry, consignment systems,
and information technology. This literature study aims to strengthen the theoretical
foundation of research and provide a broader context for the phenomenon being
studied.
Results and Discussion
MSME Development
The COVID-19 pandemic has had a significant impact on the Indonesian economy,
including the MSME sector. Many MSMEs have experienced a decline in sales and even
gone out of business due to social restrictions and a decrease in people's purchasing
power. (Marginingsih, 2021). However, MSMEs also show strong resilience in facing
crises, such as what happened in the 1997/1998 economic crisis.
The Indonesian government has taken steps to support the recovery of MSMEs,
including through the "Go Digital" and "Naik Kelas" programs (Kominfo, 2022). This
program aims to encourage MSMEs to take advantage of digital technology in running
their businesses so that they can increase competitiveness and expand market reach.
On the other hand, the retail industry continues to experience growth, driven by
changing consumer behavior that is increasingly accustomed to shopping online. This
creates opportunities for MSMEs to collaborate with retail companies in marketing their
products.
The Government of Indonesia has shown a strong commitment to supporting the
recovery and growth of MSMEs, especially during and after the COVID-19 pandemic.
Various assistance programs have been launched, including the National Economic
Recovery Program (PEN) which allocates most of its budget to strengthen the MSME
sector (KemenkeuRI.go.id, 2021). This support covers various aspects, ranging from
financing assistance such as KUR and BPUM, to training and mentoring programs to
increase the capacity of MSMEs.
Digitalization has become a key factor in increasing the competitiveness of
MSMEs. Although MSMEs contribute more than 60% to Indonesia's GDP, data from the
Ministry of Cooperatives and SMEs shows that the adoption of online platforms is still
limited (Dilogo et al., 2021). Therefore, encouraging MSMEs to "Go Digital" is crucial
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4966
in facing increasingly fierce competition and meeting the demands of the ever-growing
market (Evangelista et al., 2023).
Latest Retail Industry Information
"Today's retail sector is an exciting place, with ever-changing consumer behavior
and evolving technology demanding brands to be agile, creative and forward-looking.
Some of the key trends impacting the industry, from social commerce to personalization,
to diversification in terms of markets, channels, and audiences, present significant
challenges for both existing and new brands – but these challenges are not worth the
opportunities on offer. Making the most of these opportunities will require retailers to
pursue an end-to-end omnichannel strategy that leverages real-time data. This is to
increase customer loyalty, lower costs, and improve marketing performance." (Hanspach
et al., 2024).
What is estimated globally, is in line with what is happening to the national retail
industry. Retail sales are expected to remain strong in August 2023 with a Real Sales
Index (IPR) of 204.4, showing a positive growth of 1.3% compared to the previous year.
This strong sales performance was driven by an increase in sales of the clothing subgroup,
as well as improvements in the motor vehicle fuel group and other household appliances.
(Bank Indonesia, 2023b).
Consumer optimism on economic conditions increased in December 2023
compared to the previous month, according to the Bank Indonesia Consumer Survey. The
Consumer Confidence Index (CPI) rose to 123.8 from 123.6 in the previous month. The
increase in the CPI was mainly due to the strengthening of the Current Economic
Conditions Index (IKE), especially in the Durable Goods Purchase Index. Nevertheless,
the Consumer Expectations Index (IEK) for economic conditions in the next 6 months
remains strong, supported by the Income Expectations Index. (Bank Indonesia, 2023a).
Consignment Sales in Several Retail Industries of Public Companies
Table 1
Contribution of Consignment Sales in Several Retail Industry Sectors
Based on Table 1 of the Contribution of Consignment Sales of Several Retail
Industry Sectors, ignoring the table in 2020, especially due to the correction of the
COVID-19 pandemic, shows the consistency of retail sales growth per year.
Contribution of Consignment Sales to Several Open Retail CompaniesMiliar Rupiah
Kode Saham Nama Emiten Sales 2018 2019 2020 2021 2022 2023 Q3
LPPF Matahari Own Goods 6,661 6,559 3,094 3,407 3,708 2,830
Consigment 11,184 11,471 5,489 6,839 8,627 6,748
Total Sales 17,845 18,030 8,583 10,246 12,336 9,578
Growth 1.0% -52.4% 19.4% 20.4%
RALS Ramayana Own Goods 4,805 4,579 2,062 2,063 2,326 1,587
Consigment 3,734 3,941 1,820 2,112 2,626 2,123
Total Sales 8,539 8,520 3,882 4,176 4,953 3,710
Growth -0.2% -54.4% 7.6% 18.6%
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4966
in facing increasingly fierce competition and meeting the demands of the ever-growing
market (Evangelista et al., 2023).
Latest Retail Industry Information
"Today's retail sector is an exciting place, with ever-changing consumer behavior
and evolving technology demanding brands to be agile, creative and forward-looking.
Some of the key trends impacting the industry, from social commerce to personalization,
to diversification in terms of markets, channels, and audiences, present significant
challenges for both existing and new brands – but these challenges are not worth the
opportunities on offer. Making the most of these opportunities will require retailers to
pursue an end-to-end omnichannel strategy that leverages real-time data. This is to
increase customer loyalty, lower costs, and improve marketing performance." (Hanspach
et al., 2024).
What is estimated globally, is in line with what is happening to the national retail
industry. Retail sales are expected to remain strong in August 2023 with a Real Sales
Index (IPR) of 204.4, showing a positive growth of 1.3% compared to the previous year.
This strong sales performance was driven by an increase in sales of the clothing subgroup,
as well as improvements in the motor vehicle fuel group and other household appliances.
(Bank Indonesia, 2023b).
Consumer optimism on economic conditions increased in December 2023
compared to the previous month, according to the Bank Indonesia Consumer Survey. The
Consumer Confidence Index (CPI) rose to 123.8 from 123.6 in the previous month. The
increase in the CPI was mainly due to the strengthening of the Current Economic
Conditions Index (IKE), especially in the Durable Goods Purchase Index. Nevertheless,
the Consumer Expectations Index (IEK) for economic conditions in the next 6 months
remains strong, supported by the Income Expectations Index. (Bank Indonesia, 2023a).
Consignment Sales in Several Retail Industries of Public Companies
Table 1
Contribution of Consignment Sales in Several Retail Industry Sectors
Based on Table 1 of the Contribution of Consignment Sales of Several Retail
Industry Sectors, ignoring the table in 2020, especially due to the correction of the
COVID-19 pandemic, shows the consistency of retail sales growth per year.
Contribution of Consignment Sales to Several Open Retail CompaniesMiliar Rupiah
Kode Saham Nama Emiten Sales 2018 2019 2020 2021 2022 2023 Q3
LPPF Matahari Own Goods 6,661 6,559 3,094 3,407 3,708 2,830
Consigment 11,184 11,471 5,489 6,839 8,627 6,748
Total Sales 17,845 18,030 8,583 10,246 12,336 9,578
Growth 1.0% -52.4% 19.4% 20.4%
RALS Ramayana Own Goods 4,805 4,579 2,062 2,063 2,326 1,587
Consigment 3,734 3,941 1,820 2,112 2,626 2,123
Total Sales 8,539 8,520 3,882 4,176 4,953 3,710
Growth -0.2% -54.4% 7.6% 18.6%
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4967
1. PT Matahari Department Store Tbk (LPPF)
Figure 1
Solar Consignment Sales Contribution Chart
The contribution of consignment sales to Matahari shows the contribution of an
increase in proportion from 2018 (63%) to Q3 2023 (70%).
2. PT Ramayana Lestari Sentosa Tbk (RALS)
Figure 2
Graph of Ramayana Consignment Sales Contribution
The contribution of consignment sales shows the contribution of an increase in
proportion from 2018 (44%) to Q3 2023 (57%).
This increase shows that retail companies are increasingly aware of the potential of
consignment business models in increasing sales and expanding market reach. In
addition, this also reflects the increasing interest of MSMEs to collaborate with retail
companies through the consignment system.
In general, consignment sales systems offer several advantages for retail
companies. First, companies do not need to spend capital at the beginning to buy goods,
because the goods are entrusted by MSMEs. Second, the obligation to pay MSMEs only
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4967
1. PT Matahari Department Store Tbk (LPPF)
Figure 1
Solar Consignment Sales Contribution Chart
The contribution of consignment sales to Matahari shows the contribution of an
increase in proportion from 2018 (63%) to Q3 2023 (70%).
2. PT Ramayana Lestari Sentosa Tbk (RALS)
Figure 2
Graph of Ramayana Consignment Sales Contribution
The contribution of consignment sales shows the contribution of an increase in
proportion from 2018 (44%) to Q3 2023 (57%).
This increase shows that retail companies are increasingly aware of the potential of
consignment business models in increasing sales and expanding market reach. In
addition, this also reflects the increasing interest of MSMEs to collaborate with retail
companies through the consignment system.
In general, consignment sales systems offer several advantages for retail
companies. First, companies do not need to spend capital at the beginning to buy goods,
because the goods are entrusted by MSMEs. Second, the obligation to pay MSMEs only
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4968
arises after the goods are sold, so that the company has flexibility in managing cash flow.
Third, the company receives payments from customers first before sharing profits with
MSMEs. However, the consignment system also has disadvantages, especially lower
profit margins compared to the sale of goods purchased in disconnection.
Consignment sales is a sales method in which the owner of goods (called a
consignor), in this case, MSMEs, entrusts their merchandise to another party (called a
consinye), namely a retail company, to be sold. If the goods do not sell well within a
certain period, they will be returned to MSMEs (Jurnal Manajemen, 2019).
Collaboration between MSMEs and the Retail Industry: A Strategic Solution
The strength of national MSMEs, the growth of the retail industry both globally and
nationally, the high level of consumer confidence, and massive government support, have
created a strong momentum for Indonesia's economic growth. Collaboration between
MSMEs and the retail industry, especially through the consignment system, is one of the
strategic solutions to take advantage of this momentum.
Collaboration between MSMEs and retail companies not only provides economic
benefits for both parties but also has a dimension of social responsibility. The triple
bottom line concept emphasizes that companies need to consider the social and
environmental impacts of their business activities, apart from financial benefits (Faculty
of Business, Duta Wacana Christian University, Yogyakarta, 2016). By partnering with
local MSMEs, retail companies can demonstrate their commitment to social
responsibility, especially in terms of community economic empowerment
Background of the Implementation of the Portal Vendor System
The retail companies studied in this study previously experienced several obstacles
in the consignment sales system. These constraints are summarized in Table 2 below:
Table 2
System weakness information table before the implementation of the portal vendor systemLingkup Kondisi Sebelum implementasi System
Mitra UMKM →
Monitoring hasil penjualan produk Mitra
berdasarkan informasi Sales Assistant (SA)
secara catatan manual harian
Perhitungan Bisnis
(bagi hasil) →
Masih terdapat perselisihan bagi hasil antara
Mitra UMKM dan Perusahaan (Terutama dalam
perpajakan bagi mitra yang masih minim
pengetahuan tentang perpajakan)
Divisi Penjualan &
Merchandising →
Registrasi master data produk konsinyasi
dilakukan oleh tim merchandising karena masuk
ke dalam sistem yang dikelola oleh internal
perusahaan
Divisi Warehouse → Sistem penjualan tidak terhubung dengan saldo
persediaan
Divisi Accounting → Data Penjualan diolah secara terpisah antara
sistem penjualan dan laporan keuangan
Teknologi →
Sistem masih menerapkan "silo activiy" di mana
sistem pencatatan akuntansi terpisah
(Accounting software) dengan sistem penjualan
dan sistem persediaan
→ Belum memiliki sistem terintegrasi dengan E-
commerce
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4968
arises after the goods are sold, so that the company has flexibility in managing cash flow.
Third, the company receives payments from customers first before sharing profits with
MSMEs. However, the consignment system also has disadvantages, especially lower
profit margins compared to the sale of goods purchased in disconnection.
Consignment sales is a sales method in which the owner of goods (called a
consignor), in this case, MSMEs, entrusts their merchandise to another party (called a
consinye), namely a retail company, to be sold. If the goods do not sell well within a
certain period, they will be returned to MSMEs (Jurnal Manajemen, 2019).
Collaboration between MSMEs and the Retail Industry: A Strategic Solution
The strength of national MSMEs, the growth of the retail industry both globally and
nationally, the high level of consumer confidence, and massive government support, have
created a strong momentum for Indonesia's economic growth. Collaboration between
MSMEs and the retail industry, especially through the consignment system, is one of the
strategic solutions to take advantage of this momentum.
Collaboration between MSMEs and retail companies not only provides economic
benefits for both parties but also has a dimension of social responsibility. The triple
bottom line concept emphasizes that companies need to consider the social and
environmental impacts of their business activities, apart from financial benefits (Faculty
of Business, Duta Wacana Christian University, Yogyakarta, 2016). By partnering with
local MSMEs, retail companies can demonstrate their commitment to social
responsibility, especially in terms of community economic empowerment
Background of the Implementation of the Portal Vendor System
The retail companies studied in this study previously experienced several obstacles
in the consignment sales system. These constraints are summarized in Table 2 below:
Table 2
System weakness information table before the implementation of the portal vendor systemLingkup Kondisi Sebelum implementasi System
Mitra UMKM →
Monitoring hasil penjualan produk Mitra
berdasarkan informasi Sales Assistant (SA)
secara catatan manual harian
Perhitungan Bisnis
(bagi hasil) →
Masih terdapat perselisihan bagi hasil antara
Mitra UMKM dan Perusahaan (Terutama dalam
perpajakan bagi mitra yang masih minim
pengetahuan tentang perpajakan)
Divisi Penjualan &
Merchandising →
Registrasi master data produk konsinyasi
dilakukan oleh tim merchandising karena masuk
ke dalam sistem yang dikelola oleh internal
perusahaan
Divisi Warehouse → Sistem penjualan tidak terhubung dengan saldo
persediaan
Divisi Accounting → Data Penjualan diolah secara terpisah antara
sistem penjualan dan laporan keuangan
Teknologi →
Sistem masih menerapkan "silo activiy" di mana
sistem pencatatan akuntansi terpisah
(Accounting software) dengan sistem penjualan
dan sistem persediaan
→ Belum memiliki sistem terintegrasi dengan E-
commerce
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4969
These obstacles cause inefficiency and ineffectiveness in the management of
consignment sales. This results in losses for the company, such as a lack of replenishment
of goods stock on goods with a fast sales turnover, data discrepancies, and dissatisfaction
of MSME partners. To overcome these obstacles, the company decided to implement ERP
in the retail industry which is integrated with a consignment sales collaboration system
known as the Vendor portal. ERP is a system that unites various business processes within
a company so that it can improve operational efficiency, facilitate communication
between departments, and facilitate access to important information (Heriningsih et al.,
2018). ERP, which stands for Enterprise Resource Planning, is the process of collecting
and organizing business data in an integrated manner through a series of interconnected
software. ERP software includes a variety of applications that automate business
functions such as production, sales reporting, accounting, and more (Sebayang et al.,
2022). By integrating ERP and vendor portals, it is hoped that management can be more
effective and efficient for consignment cooperation, as well as increase transparency and
collaboration between companies and MSME partners.
Portal Vendor System Implementation Team Structure
To implement the Vendor portal system, the company formed a special team called
the Task Force team which consists of the IT, accounting, and business handling teams.
The team is then divided into several subteams with different roles and responsibilities,
such as:
1. Project Sponsor & Steering Committee: Comprising the President and Directors from
related fields, this team is responsible for strategic decision-making and project
oversight.
2. Project Manager: A Company employee who is experienced in ERP implementation
and masters the Company's business processes from end to end, serves as a project
leader, and is responsible for the smooth execution of the project.
3. IT Support & Infrastructure: Prepare and analyze all IT infrastructure-related needs,
budgeting, and coordination with procurement needed for implementation.
4. Deployment Champion: A super user who describes business requirements by the
company's business process model, serving as a user representative in the system
implementation process.
In addition to the company's internal team, the company also involves external
parties, namely vendor developers and implementation consultants. Vendor developers
are in charge of building and designing systems based on common business processes and
making modifications based on business requirements in generally acceptable customs.
The implementation consultant is in charge of translating the business requirements,
and common business processes, and monitoring the project timeline of each party:
1. Enterprise: As described in Deployment Champion above;
2. Developer: An external party who builds, and designs a system based on common
business processes and makes modifications based on business requirements as long
as it does not deviate from the common business model
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4969
These obstacles cause inefficiency and ineffectiveness in the management of
consignment sales. This results in losses for the company, such as a lack of replenishment
of goods stock on goods with a fast sales turnover, data discrepancies, and dissatisfaction
of MSME partners. To overcome these obstacles, the company decided to implement ERP
in the retail industry which is integrated with a consignment sales collaboration system
known as the Vendor portal. ERP is a system that unites various business processes within
a company so that it can improve operational efficiency, facilitate communication
between departments, and facilitate access to important information (Heriningsih et al.,
2018). ERP, which stands for Enterprise Resource Planning, is the process of collecting
and organizing business data in an integrated manner through a series of interconnected
software. ERP software includes a variety of applications that automate business
functions such as production, sales reporting, accounting, and more (Sebayang et al.,
2022). By integrating ERP and vendor portals, it is hoped that management can be more
effective and efficient for consignment cooperation, as well as increase transparency and
collaboration between companies and MSME partners.
Portal Vendor System Implementation Team Structure
To implement the Vendor portal system, the company formed a special team called
the Task Force team which consists of the IT, accounting, and business handling teams.
The team is then divided into several subteams with different roles and responsibilities,
such as:
1. Project Sponsor & Steering Committee: Comprising the President and Directors from
related fields, this team is responsible for strategic decision-making and project
oversight.
2. Project Manager: A Company employee who is experienced in ERP implementation
and masters the Company's business processes from end to end, serves as a project
leader, and is responsible for the smooth execution of the project.
3. IT Support & Infrastructure: Prepare and analyze all IT infrastructure-related needs,
budgeting, and coordination with procurement needed for implementation.
4. Deployment Champion: A super user who describes business requirements by the
company's business process model, serving as a user representative in the system
implementation process.
In addition to the company's internal team, the company also involves external
parties, namely vendor developers and implementation consultants. Vendor developers
are in charge of building and designing systems based on common business processes and
making modifications based on business requirements in generally acceptable customs.
The implementation consultant is in charge of translating the business requirements,
and common business processes, and monitoring the project timeline of each party:
1. Enterprise: As described in Deployment Champion above;
2. Developer: An external party who builds, and designs a system based on common
business processes and makes modifications based on business requirements as long
as it does not deviate from the common business model
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4970
3. Implementation Consultant: An external party who translates business requirements,
and common business processes and monitors project timelines for each party.
The structure is formed as follows:
Figure 3
Joint Structure of the Company, Implementation and Developer
Stages of Portal Vendor System Implementation
Information systems are a combination of human activities, software, hardware,
communication networks, and data sources that are interconnected to collect, process, and
distribute information within an organization. (Pricilia & Firdaus, 2024). How to apply
consignment cooperation to Information System components:
1. People: Accountants, local MSME business actors, and retail business actors.
2. Procedures and instructions: The business process agreed upon in the collaboration of
this collaboration system from the initial stage of the goods ready to be sold by the
consignor to the distribution of the commission from the consignor to the consignor
when the goods have been sold.
3. Data: Sales transactions through POS (Point of Sales).
4. Software: A collaboration system through middleware built by API connections
between consignors by consignors.
5. Information technology infrastructure: computer, cloud servers, jaringan internet.
6. Internal Controls: A consignment cooperation agreement between a consignee and a
consignor.
The implementation of the Vendor portal system is carried out through several stages,
namely:
1. Preparation
1) Formation of Team Counterpart: This stage is carried out to form a team consisting
of representatives from various internal divisions of the company and external
parties.
2) Developer Vendor Procurement Process: This stage is carried out to select the right
developer vendor through a transparent and accountable procurement process.
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4970
3. Implementation Consultant: An external party who translates business requirements,
and common business processes and monitors project timelines for each party.
The structure is formed as follows:
Figure 3
Joint Structure of the Company, Implementation and Developer
Stages of Portal Vendor System Implementation
Information systems are a combination of human activities, software, hardware,
communication networks, and data sources that are interconnected to collect, process, and
distribute information within an organization. (Pricilia & Firdaus, 2024). How to apply
consignment cooperation to Information System components:
1. People: Accountants, local MSME business actors, and retail business actors.
2. Procedures and instructions: The business process agreed upon in the collaboration of
this collaboration system from the initial stage of the goods ready to be sold by the
consignor to the distribution of the commission from the consignor to the consignor
when the goods have been sold.
3. Data: Sales transactions through POS (Point of Sales).
4. Software: A collaboration system through middleware built by API connections
between consignors by consignors.
5. Information technology infrastructure: computer, cloud servers, jaringan internet.
6. Internal Controls: A consignment cooperation agreement between a consignee and a
consignor.
The implementation of the Vendor portal system is carried out through several stages,
namely:
1. Preparation
1) Formation of Team Counterpart: This stage is carried out to form a team consisting
of representatives from various internal divisions of the company and external
parties.
2) Developer Vendor Procurement Process: This stage is carried out to select the right
developer vendor through a transparent and accountable procurement process.
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4971
3) Preparation for project execution: This stage aims to ensure that all necessary
preparations have been made prior to the implementation of the project, such as IT
infrastructure, documentation, and training.
2. Design
1) Preparation of Business Requirement Document (BRD): This stage is carried out
to document the company's business needs related to the Vendor portal system.
2) Gap Analysis: This stage is carried out to analyze the gap between the company's
business needs and the common business processes available in the ERP.
3) Business Blueprint: This stage is carried out to design the Vendor portal system
design based on BRD and Gap Analysis.
4) Design IT Solution & IT Technical Documents: This stage is carried out to design
the IT solution and technical documents required to build the Vendor Portal
system.
5) IT infrastructure preparation: This stage is done to prepare the IT infrastructure
needed to support the port Vendor system
6) Custom Development: This stage is carried out to develop the Vendor portal
system according to the design that has been made.
3. Implementation & Data Migration
1) Data Migration: This stage is performed to move data from the legacy system to
the Vendor portal system.
2) Training The Trainers: This stage is carried out to train super users in using the
Vendor portal system.
3) Dry Run: This stage is done to test the Portal Vendor system as if it was already
running at the implementation stage before it was officially launched while making
quick improvements.
4) Go Live: This stage is carried out to officially launch the Vendor portal system.
4. Post-Implementation Support
1) Assistance & Maintenance: This stage is carried out to provide assistance to users
of the Vendor portal system and perform maintenance to ensure that the system
runs properly. This assistance is carried out by a support team from vendor
developers and implementation consultants. Maintenance carried out includes bug
fixes, software updates, and system adjustments to changing business needs.
2) Troubleshooting: This stage is carried out to resolve any obstacles or obstacles that
may occur when using the Vendor portal system. Users can report problems
through the provided troubleshooting portal. The support team will follow up on
the report and resolve the issue based on the Service Level Agreement.
3) Continuous Improvement: This stage is carried out to continuously improve the
performance of the Vendor portal system based on input from users and
technological developments. Continuous improvement is carried out through a
structured and systematic process, such as:
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4971
3) Preparation for project execution: This stage aims to ensure that all necessary
preparations have been made prior to the implementation of the project, such as IT
infrastructure, documentation, and training.
2. Design
1) Preparation of Business Requirement Document (BRD): This stage is carried out
to document the company's business needs related to the Vendor portal system.
2) Gap Analysis: This stage is carried out to analyze the gap between the company's
business needs and the common business processes available in the ERP.
3) Business Blueprint: This stage is carried out to design the Vendor portal system
design based on BRD and Gap Analysis.
4) Design IT Solution & IT Technical Documents: This stage is carried out to design
the IT solution and technical documents required to build the Vendor Portal
system.
5) IT infrastructure preparation: This stage is done to prepare the IT infrastructure
needed to support the port Vendor system
6) Custom Development: This stage is carried out to develop the Vendor portal
system according to the design that has been made.
3. Implementation & Data Migration
1) Data Migration: This stage is performed to move data from the legacy system to
the Vendor portal system.
2) Training The Trainers: This stage is carried out to train super users in using the
Vendor portal system.
3) Dry Run: This stage is done to test the Portal Vendor system as if it was already
running at the implementation stage before it was officially launched while making
quick improvements.
4) Go Live: This stage is carried out to officially launch the Vendor portal system.
4. Post-Implementation Support
1) Assistance & Maintenance: This stage is carried out to provide assistance to users
of the Vendor portal system and perform maintenance to ensure that the system
runs properly. This assistance is carried out by a support team from vendor
developers and implementation consultants. Maintenance carried out includes bug
fixes, software updates, and system adjustments to changing business needs.
2) Troubleshooting: This stage is carried out to resolve any obstacles or obstacles that
may occur when using the Vendor portal system. Users can report problems
through the provided troubleshooting portal. The support team will follow up on
the report and resolve the issue based on the Service Level Agreement.
3) Continuous Improvement: This stage is carried out to continuously improve the
performance of the Vendor portal system based on input from users and
technological developments. Continuous improvement is carried out through a
structured and systematic process, such as:
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4972
a) Feedback collection: Feedback from users can be collected through various
means, such as surveys, interviews, and focus group discussions and evaluation
of errors found after the store operates with the vendor portal system
b) Feedback analysis: The feedback collected is then analyzed to identify areas
that need to be improved on a priority basis
c) Solution development: Solutions to improve areas that need to be improved are
then developed.
d) Solution implementation: The developed solution is then implemented into the
Vendor portal system.
e) Evaluation: The implementation of the solution is then evaluated to ensure its
effectiveness.
Impact of the Implementation of the Portal Vendor System
The implementation of the Vendor portal system has had a positive impact on the
company, both internally and for MSME partners. These positive impacts include:
1. Increased effectiveness and efficiency of consignment sales management: The Vendor
portal system has helped companies improve the effectiveness and efficiency of
consignment sales management. This can be seen from several indicators, including:
1) Accelerate the time needed to process registration and price to delivery of
consignment products.
2) Improving the accuracy of consignment sales transaction data in real time.
3) Decrease in operational costs related to the management of consignment sales.
2. Increased transparency and collaboration between companies and MSME partners:
The Vendor portal system has increased transparency and collaboration between
companies and MSME partners. This can be seen from several indicators, such as:
1) The increase in the trust and satisfaction of MSME partners in the company with
an increase in the number of partners every period.
2) The sales monitoring process can be carried out by partners independently in real
time.
3) MSME partners can find out the simulation of the rights that will be obtained when
new consignment products are activated in the system so that if there is a
discrepancy, corrections can be made immediately.
4) Partners can control what sells and what doesn't so that product replacement can
be carried out faster
Challenges and solutions in the implementation of the portal vendor system
Although the implementation of the Vendor portal system has had a positive impact
on the company, there are still several challenges faced, including:
1. Change in mindset and work culture: The implementation of the Vendor portal system
requires a change in mindset and work culture from employees. Employees need to get
used to using the new system and need to adapt to the new business processes.
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4972
a) Feedback collection: Feedback from users can be collected through various
means, such as surveys, interviews, and focus group discussions and evaluation
of errors found after the store operates with the vendor portal system
b) Feedback analysis: The feedback collected is then analyzed to identify areas
that need to be improved on a priority basis
c) Solution development: Solutions to improve areas that need to be improved are
then developed.
d) Solution implementation: The developed solution is then implemented into the
Vendor portal system.
e) Evaluation: The implementation of the solution is then evaluated to ensure its
effectiveness.
Impact of the Implementation of the Portal Vendor System
The implementation of the Vendor portal system has had a positive impact on the
company, both internally and for MSME partners. These positive impacts include:
1. Increased effectiveness and efficiency of consignment sales management: The Vendor
portal system has helped companies improve the effectiveness and efficiency of
consignment sales management. This can be seen from several indicators, including:
1) Accelerate the time needed to process registration and price to delivery of
consignment products.
2) Improving the accuracy of consignment sales transaction data in real time.
3) Decrease in operational costs related to the management of consignment sales.
2. Increased transparency and collaboration between companies and MSME partners:
The Vendor portal system has increased transparency and collaboration between
companies and MSME partners. This can be seen from several indicators, such as:
1) The increase in the trust and satisfaction of MSME partners in the company with
an increase in the number of partners every period.
2) The sales monitoring process can be carried out by partners independently in real
time.
3) MSME partners can find out the simulation of the rights that will be obtained when
new consignment products are activated in the system so that if there is a
discrepancy, corrections can be made immediately.
4) Partners can control what sells and what doesn't so that product replacement can
be carried out faster
Challenges and solutions in the implementation of the portal vendor system
Although the implementation of the Vendor portal system has had a positive impact
on the company, there are still several challenges faced, including:
1. Change in mindset and work culture: The implementation of the Vendor portal system
requires a change in mindset and work culture from employees. Employees need to get
used to using the new system and need to adapt to the new business processes.
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4973
2. User skills and knowledge: Users of the Vendor portal system must have sufficient
skills and knowledge to use the system. Companies need to provide adequate training
for users.
3. Integration with other systems: The Vendor portal system needs to be integrated with
other systems in the company, such as accounting systems and inventory management
systems.
To overcome these challenges, companies need to implement several solutions,
including:
1. Conducting socialization and education: Companies need to socialize and educate
employees and MSME partners about the benefits and how to use the Vendor portal
system.
2. Provide adequate training: The company needs to provide adequate training for the
users of the Vendor portal system.
3. System integration: The company needs to integrate the Vendor portal system with
other systems in the company.
Based on the stages of the implementation process above, the following solutions
to system problems are prepared:
Table 3
Table of information analysis and solution of needs for system weaknesses before the
implementation of the Collaboration System
Data Flow Diagram (Dfd)
DFD is a visual representation that describes how information flows in a system or
process, including details about the inputs and outputs of each entity and the processesLingkup Analisa Kebutuhan Solusi Kebutuhan
Mitra UMKM → Diperlukan sistem terintegrasi kepada eksternal
untuk informasi hasil penjualan secara real time → Membangun middle-ware yang menghubungkan
kebutuhan informasi eksternal dan ERP
Perhitungan Bisnis
(bagi hasil) →
Diperlukan sistem informasi bagi eksternal dan
perusahaan untuk perhitungan simulasi komisi
dari produk yang dipasarkan sebelum terjadinya
penjualan (simulasi)
→
Membangun custom module yang dapat
mensimulasikan bagi hasil atas produk yang akan
dijual secara kontrak kerjasama
Divisi Penjualan &
Merchandising →
Diperlukan peran mitra konsinyasi yang ikut
terlibat dalam register produk sesuai
kebutuhannya untuk minimalisir fungsi klerikal di
perusahaan
→
Membangun custom module yang
menghubungkan register produk mitra dengan
validasi pada ERP oleh karyawan perusahaan
untuk efisiensi proses kerja perusahaan
Divisi Warehouse →
Diperlukan integrasi persediaan dan penjualan,
untuk mengetahui jumlah stok siap jual dan
tersedia di gudang
→
Membangun sistem penjualan dengan integrasi ke
jumlah stok milik mitra konsinyasi pada gudang
perusahaan
Divisi Accounting →
Diperlukan end to end process antara front End
(sales) sampai dengan back End (laporan
keuangan)
→ Membangun system terintegrasi antara POS
(Point of Sales ) dan ERP
Teknologi →
Diperlukan end to end process antara front End
(sales) sampai dengan back End (laporan
keuangan)
→ Membangun system terintegrasi antara POS dan
ERP
→ Diperlukan sistem terintegrasi Online to Offline
(O2O) → Membangun system terintegrasi antara POS dan
ERP dan online
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4973
2. User skills and knowledge: Users of the Vendor portal system must have sufficient
skills and knowledge to use the system. Companies need to provide adequate training
for users.
3. Integration with other systems: The Vendor portal system needs to be integrated with
other systems in the company, such as accounting systems and inventory management
systems.
To overcome these challenges, companies need to implement several solutions,
including:
1. Conducting socialization and education: Companies need to socialize and educate
employees and MSME partners about the benefits and how to use the Vendor portal
system.
2. Provide adequate training: The company needs to provide adequate training for the
users of the Vendor portal system.
3. System integration: The company needs to integrate the Vendor portal system with
other systems in the company.
Based on the stages of the implementation process above, the following solutions
to system problems are prepared:
Table 3
Table of information analysis and solution of needs for system weaknesses before the
implementation of the Collaboration System
Data Flow Diagram (Dfd)
DFD is a visual representation that describes how information flows in a system or
process, including details about the inputs and outputs of each entity and the processesLingkup Analisa Kebutuhan Solusi Kebutuhan
Mitra UMKM → Diperlukan sistem terintegrasi kepada eksternal
untuk informasi hasil penjualan secara real time → Membangun middle-ware yang menghubungkan
kebutuhan informasi eksternal dan ERP
Perhitungan Bisnis
(bagi hasil) →
Diperlukan sistem informasi bagi eksternal dan
perusahaan untuk perhitungan simulasi komisi
dari produk yang dipasarkan sebelum terjadinya
penjualan (simulasi)
→
Membangun custom module yang dapat
mensimulasikan bagi hasil atas produk yang akan
dijual secara kontrak kerjasama
Divisi Penjualan &
Merchandising →
Diperlukan peran mitra konsinyasi yang ikut
terlibat dalam register produk sesuai
kebutuhannya untuk minimalisir fungsi klerikal di
perusahaan
→
Membangun custom module yang
menghubungkan register produk mitra dengan
validasi pada ERP oleh karyawan perusahaan
untuk efisiensi proses kerja perusahaan
Divisi Warehouse →
Diperlukan integrasi persediaan dan penjualan,
untuk mengetahui jumlah stok siap jual dan
tersedia di gudang
→
Membangun sistem penjualan dengan integrasi ke
jumlah stok milik mitra konsinyasi pada gudang
perusahaan
Divisi Accounting →
Diperlukan end to end process antara front End
(sales) sampai dengan back End (laporan
keuangan)
→ Membangun system terintegrasi antara POS
(Point of Sales ) dan ERP
Teknologi →
Diperlukan end to end process antara front End
(sales) sampai dengan back End (laporan
keuangan)
→ Membangun system terintegrasi antara POS dan
ERP
→ Diperlukan sistem terintegrasi Online to Offline
(O2O) → Membangun system terintegrasi antara POS dan
ERP dan online
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4974
involved (Rizaldi & Munandar, 2024). Based on the process that the company has taken,
the author has compiled the DFD as follows:
Product Register
In the vendor portal system, the consignment sales process begins with the
registration of products to be sold by MSME consignment partners (or MSMEs). In this
case, MSMEs have carried out a consignment cooperation contract with the Company.
So the initial stage of product registration is carried out by MSMEs through portal
vendors. The vendor portal will provide notifications to the ERP on the application used
by the Sales/Merchandising Division (or MD). MD will check the suitability of the name
and article as well as the product group registered by MSMEs, after it is appropriate, the
product will be validated by MD, and MSMEs will know on the Vendor portal if the
product is ready to be given a price. If there is a discrepancy between the name and article
and the product group, then the MD will provide information to the MSMEs to replace
and have the authority to reject the ERP, automatically the Vendor portal provides this
notification. So that the registered product is not ready to be given a price.
Figure 4
DFD Product Register
Price Register
In the next stage after product registration is successfully carried out by MSMEs,
the product can be given a retail selling price by MSMEs. Important information at this
stage is, that when the partner gives a price on the product, based on the profit-sharing
agreement, the portal vendor provides a simulation of the rights that will be received by
MSMEs before the product is successfully sold. At this stage, it is important for MSMEs
to carefully examine the rights they will receive based on the price registered on the
system. If it turns out to be inappropriate, MSMEs can contact the MD to verify the
calculation method. MD can still revise the price before it is validated by MD. If the price
is appropriate, MSMEs can contact the MD to validate. After the MD performs
Validation, the product that has been given a price is ready to be registered to the
inventory system for the delivery of goods.
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4974
involved (Rizaldi & Munandar, 2024). Based on the process that the company has taken,
the author has compiled the DFD as follows:
Product Register
In the vendor portal system, the consignment sales process begins with the
registration of products to be sold by MSME consignment partners (or MSMEs). In this
case, MSMEs have carried out a consignment cooperation contract with the Company.
So the initial stage of product registration is carried out by MSMEs through portal
vendors. The vendor portal will provide notifications to the ERP on the application used
by the Sales/Merchandising Division (or MD). MD will check the suitability of the name
and article as well as the product group registered by MSMEs, after it is appropriate, the
product will be validated by MD, and MSMEs will know on the Vendor portal if the
product is ready to be given a price. If there is a discrepancy between the name and article
and the product group, then the MD will provide information to the MSMEs to replace
and have the authority to reject the ERP, automatically the Vendor portal provides this
notification. So that the registered product is not ready to be given a price.
Figure 4
DFD Product Register
Price Register
In the next stage after product registration is successfully carried out by MSMEs,
the product can be given a retail selling price by MSMEs. Important information at this
stage is, that when the partner gives a price on the product, based on the profit-sharing
agreement, the portal vendor provides a simulation of the rights that will be received by
MSMEs before the product is successfully sold. At this stage, it is important for MSMEs
to carefully examine the rights they will receive based on the price registered on the
system. If it turns out to be inappropriate, MSMEs can contact the MD to verify the
calculation method. MD can still revise the price before it is validated by MD. If the price
is appropriate, MSMEs can contact the MD to validate. After the MD performs
Validation, the product that has been given a price is ready to be registered to the
inventory system for the delivery of goods.
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4975
Figure 5
DFD Price Register
Product Shipment
Based on the agreement on the delivery schedule, MSMEs can deliver products that
will be sold at the Company's outlets, by previously registering the products to be
delivered systematically. This stage is called product shipment. Products that have been
validated in price will be registered by MSMEs to be sent systematically through the
vendor portal. On the Vendor portal, there is a goods delivery menu, the menu contains
columns that will be filled in with the product to be sent, and the number and location of
the outlet to be addressed. Product registration that has been completed in the Vendor
portal, will automatically issue the same Delivery Order (DO) number as the ERP in the
Warehouse Division (or called the Warehouse).
Based on the confirmation of the delivery schedule, the products sent by MSMEs
will be received by the Warehouse, for further verification of product quality suitability
so that they are not defective and ready to be displayed at the outlet. After the product is
suitable, the Warehouse will verify the conformity of the quantity received with that
recorded in the DO. If appropriate, then the product is ready to be sold on the ERP system,
if it is not by the Warehouse can change the quantity or completely reject the product sent
to DO.
In this case, the product registration process until it enters the ERP system is ready
for sale.
Figure 6
DFD Product Shipment
When there is a process of forming partner rights due to the realization of the sale
of consignment partners, the end-to-end DFD is formed as follows:
The consumer transaction process for the purchase of consignment products to the
payment of rights to partners.
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4975
Figure 5
DFD Price Register
Product Shipment
Based on the agreement on the delivery schedule, MSMEs can deliver products that
will be sold at the Company's outlets, by previously registering the products to be
delivered systematically. This stage is called product shipment. Products that have been
validated in price will be registered by MSMEs to be sent systematically through the
vendor portal. On the Vendor portal, there is a goods delivery menu, the menu contains
columns that will be filled in with the product to be sent, and the number and location of
the outlet to be addressed. Product registration that has been completed in the Vendor
portal, will automatically issue the same Delivery Order (DO) number as the ERP in the
Warehouse Division (or called the Warehouse).
Based on the confirmation of the delivery schedule, the products sent by MSMEs
will be received by the Warehouse, for further verification of product quality suitability
so that they are not defective and ready to be displayed at the outlet. After the product is
suitable, the Warehouse will verify the conformity of the quantity received with that
recorded in the DO. If appropriate, then the product is ready to be sold on the ERP system,
if it is not by the Warehouse can change the quantity or completely reject the product sent
to DO.
In this case, the product registration process until it enters the ERP system is ready
for sale.
Figure 6
DFD Product Shipment
When there is a process of forming partner rights due to the realization of the sale
of consignment partners, the end-to-end DFD is formed as follows:
The consumer transaction process for the purchase of consignment products to the
payment of rights to partners.
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4976
Figure 7
DFD processes consumer transactions on the purchase of consignment products up to the
payment of rights to partners
The information listed in the Data Flow Diagram in Figure 3.5 describes the
following process.
1. Payment by consumer diagram:
1) This diagram explains the data transformation of the payment process carried out
by consumers in register payment information, which is stored in the form of a
POS system, generating payment information, consignment products sold;
2) The POS system forwards information to the ERP system, resulting in sales
information and Cost of Goods Sold (COGS) that are formed at a certain time for
MSME partner products sold. The Company records HPP as a debt transaction that
has not been collected from the partner due to the partner's rights that arise;
3) The ERP system passes the information to the Vendor portal system, thus
generating information for partners regarding their rights that arise at a given time
based on POS sales at a particular outlet.
2. Real-Time Calculation Diagram: This diagram explains the transformation of data
from the ERP system on sales at the POS into financial report information at a certain
time. This process is calculated in real time at the time of registration payment.
3. Revenue Sharing Calculation Diagram: This diagram explains the transformation of
data from the ERP System on sales at the POS into unbilled debt information for
MSME partners at a certain time.
4. Billing Process Diagram: This diagram explains the transformation of data from the
ERP System on sales at the POS into information on rights that can be billed by MSME
partners at a certain time to be issued in the form of invoices.
5. Billing Diagram: This diagram describes the transformation of data from unbilled
debts to MSME partner debts after the collection process by the MSME partner and
accounting verification.
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4976
Figure 7
DFD processes consumer transactions on the purchase of consignment products up to the
payment of rights to partners
The information listed in the Data Flow Diagram in Figure 3.5 describes the
following process.
1. Payment by consumer diagram:
1) This diagram explains the data transformation of the payment process carried out
by consumers in register payment information, which is stored in the form of a
POS system, generating payment information, consignment products sold;
2) The POS system forwards information to the ERP system, resulting in sales
information and Cost of Goods Sold (COGS) that are formed at a certain time for
MSME partner products sold. The Company records HPP as a debt transaction that
has not been collected from the partner due to the partner's rights that arise;
3) The ERP system passes the information to the Vendor portal system, thus
generating information for partners regarding their rights that arise at a given time
based on POS sales at a particular outlet.
2. Real-Time Calculation Diagram: This diagram explains the transformation of data
from the ERP system on sales at the POS into financial report information at a certain
time. This process is calculated in real time at the time of registration payment.
3. Revenue Sharing Calculation Diagram: This diagram explains the transformation of
data from the ERP System on sales at the POS into unbilled debt information for
MSME partners at a certain time.
4. Billing Process Diagram: This diagram explains the transformation of data from the
ERP System on sales at the POS into information on rights that can be billed by MSME
partners at a certain time to be issued in the form of invoices.
5. Billing Diagram: This diagram describes the transformation of data from unbilled
debts to MSME partner debts after the collection process by the MSME partner and
accounting verification.
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4977
6. Payment Process Diagram to Partners: This diagram explains the transformation of
MSME partners' debt data after going through the payment register process and
payments to MSME partners turn into a list of invoices that have been paid. This
information reconciles the ERP system and the Vendor portal system. At this stage,
MSME partners need to check the status of invoices that have been billed with the
realization of the payments they have received.
Flowcharts
Based on information on the business process made by the company and the
documentation flow, the following is an overview of the business process (Level)
Resolution owned by the company:
Figure 8
Flowcharts overview of business processes (High Level) Company Consultation
Conclusion
The conclusion of this study illustrates that the development of the retail industry
has triggered the creativity of information system solutions that simplify business
processes, increase administrative efficiency and resources, and provide information
disclosure to stakeholders quickly.
This study finds that the implementation of the consignment sales collaboration
system has succeeded in increasing the effectiveness and efficiency of consignment sales
management companies, increasing transparency and collaboration between companies
and MSME partners, and increasing consignment sales turnover.
The implementation of the consignment sales collaboration system has made a
positive contribution to the company in improving the effectiveness and efficiency of
consignment sales management, increasing transparency and collaboration between the
company and MSME partners, and increasing the turnover of consignment sales.
Therefore, the implementation of a consignment sales collaboration system can be
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4977
6. Payment Process Diagram to Partners: This diagram explains the transformation of
MSME partners' debt data after going through the payment register process and
payments to MSME partners turn into a list of invoices that have been paid. This
information reconciles the ERP system and the Vendor portal system. At this stage,
MSME partners need to check the status of invoices that have been billed with the
realization of the payments they have received.
Flowcharts
Based on information on the business process made by the company and the
documentation flow, the following is an overview of the business process (Level)
Resolution owned by the company:
Figure 8
Flowcharts overview of business processes (High Level) Company Consultation
Conclusion
The conclusion of this study illustrates that the development of the retail industry
has triggered the creativity of information system solutions that simplify business
processes, increase administrative efficiency and resources, and provide information
disclosure to stakeholders quickly.
This study finds that the implementation of the consignment sales collaboration
system has succeeded in increasing the effectiveness and efficiency of consignment sales
management companies, increasing transparency and collaboration between companies
and MSME partners, and increasing consignment sales turnover.
The implementation of the consignment sales collaboration system has made a
positive contribution to the company in improving the effectiveness and efficiency of
consignment sales management, increasing transparency and collaboration between the
company and MSME partners, and increasing the turnover of consignment sales.
Therefore, the implementation of a consignment sales collaboration system can be
Fredy Rizaldi, Agus Munandar
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4978
recommended for retail companies that want to improve the performance of consignment
cooperation with MSME partners.
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4978
recommended for retail companies that want to improve the performance of consignment
cooperation with MSME partners.
Increasing the Effectiveness and Efficiency of Local MSME Consignment Cooperation with the
Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4979
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Portal Vendor System
Indonesian Journal of Social Technology, Vol. 5, No. 11, November 2024 4979
Bibliography
Bahri, R. S. (2020). Kajian Literature Strategi Ritel Omnichannel Sebagai
Pengembangan Dari Strategi Ritel Multichannel Pada Industri Ritel. Journal of
Accounting and Business Studies, 5(2). https://doi.org/10.61769/.v5i2.483
Dilogo, I. H., Aditianingsih, D., Sugiarto, A., Burhan, E., Damayanti, T., Sitompul, P.
A., Mariana, N., Antarianto, R. D., Liem, I. K., & Kispa, T. (2021). Umbilical cord
mesenchymal stromal cells as critical COVID-19 adjuvant therapy: a randomized
controlled trial. Stem Cells Translational Medicine, 10(9), 1279–1287.
Evangeulista, G., Agustin, A., Putra, G. P. E., Pramesti, D. T., & Madiistriyatno, H.
(2023). Strategi UMKM dalam menghadapi digitalisasi. Oikos Nomos: Jurnal
Kajian Ekonomi Dan Bisnis, 16(1), 33–42.
https://doi.org/10.37479/jkeb.v16i1.20799
Hanspach, P., Sapi, G., & Wieting, M. (2024). Algorithms in the marketplace: An
empirical analysis of automated pricing in e-commerce. Available at SSRN
3945137.
Heriningsih, S., Rusherlistyani, R., & Sudaryati, D. (2018). PbM PEMBANGUNAN
KAWASAN GO GREEN PADA DESA JAGALAN KECAMATAN BANGUTAPAN
KABUPATEN BANTUL.
Marginingsih, R. (2021). Program pemulihan ekonomi nasional sebagai kebijakan
penanggulangan dampak pandemi Covid-19 pada sektor UMKM. Jurnal
Khatulistiwa Informatika, 8(2), 110–116.
Pricilia, R., & Firdaus, R. (2024). PERAN SISTEM INFORMASI MANAJEMEN
DALAM ORGANISASI YANG BERDAYA SAING. Jurnal Intelek Insan
Cendikia, 1(4), 1031–1038.
Putra, K. N., Amelia, V. R., Widyaningsih, D. S., Mentari, T., & Alexandro, R. (2023).
Mengungkap Makna Akuntansi Pada UMKM di Kota Palangka Raya. Economics
Journal, 4(1), 95–101.
Rizaldi, F., & Munandar, A. (2024). Increasing The Effectiveness And Efficiency Of
Local Msme Consignment Cooperation With The Vendor System. EKOMBIS
REVIEW: Jurnal Ilmiah Ekonomi Dan Bisnis, 12(4), 3675–3690.
Sebayang, B., Marthino, E., Lim, M. A., Raymond, R., Ferdianto, R., Rovina, R., Gestu,
R. L., Cuandra, F., & Zai, I. (2022). Pengaruh Manajemen Rantai Pasok dan
Prediksi Alasan Re-engineering Enterprise Resource Planning pada PT. Frisian
Flag Indonesia. Jurnal Penelitian Inovatif, 2(1), 197–208.