The Development of Procurement Role as a Strategic Function in Public Hospital

Abstract

Public hospital is non-profit organizations provide health services to the community. One of them is Dr. Kariadi General Hospital (RSDK), the best public hospital in Central Java. Currently, RSDK already have independent procurement unit however, the role of the procurement unit in the business process is still not one that is strategically important. Research's primary goal is to assess the maturity level of procurement organizations to understand the characteristics need to be improved. The research design for data collection is survey research. The analysis method employed is the Supply Management Maturity Model proposed to measure the level of maturity. The measurement of the maturity level of the procurement function is based on 5 characteristics, namely procurement planning, organizational structure of purchasing, organizational processes, human resources and leading, and purchasing control. The results of the study show that maturity level at procurement unit of RSDK is on stage 2 or independent stage. This stage shows that procurement unit has adopts the latest purchasing techniques, but procurement strategy is not aligned with the organization strategy. Characteristics that have poor performance are purchasing control and human resources and leading. The finding of this study provide insight into the importance of increasing the maturity level of the procurement function in supporting the strategic role of procurement.