Identifying Critical Delay Risks in Internal Corporate Procurement Through Business Process Mapping: A Case Study of Air Compressor System Projects

Abstract

Internal corporate procurement plays an essential role in supporting project delivery performance, particularly in complex industrial systems involving multiple functional units, technical requirements, and global supply chain coordination. However, the procurement of air compressor systems remains vulnerable to delivery delays arising from uncertainties related to technical specifications, approval procedures, production capacity, component availability, and international logistics. This study aimed to analyze the existing business process structure for the internal procurement of air compressor systems at PT X and to identify potential risks at each stage of the procurement process that could contribute to delivery delays and contractual penalties. The study employed a qualitative case study design. Data were collected through document analysis, procurement project records from 2021–2024, direct observations, and in-depth interviews with personnel involved in project management, engineering, procurement, factory coordination, and logistics. The data were analyzed using business process mapping and qualitative risk identification based on the principles of ISO 31000 and the Project Management Body of Knowledge (PMBOK). The findings revealed that the procurement process comprised five major stages: technical planning and specification, internal approval, factory order placement, production and subvendor management, and logistics and delivery. Five major delay risks were identified: specification changes, approval delays, delayed factory order placement, subvendor component delays, and customs clearance and shipping disruptions. These risks increased procurement lead times and adversely affected project delivery performance. The study concluded that greater process standardization, stronger cross-functional coordination, and structured risk control mechanisms were necessary to minimize procurement delays and improve project delivery reliability.