Designing Green Procurement based on ERP for Leather Tanning Industry

A high population and livestock production in Garut is the beginning of the development leather tanning industry, And now the leather tanning industry is the largest sector industry in Indonesia. A Leather tanning industry has the potential to harm the environment. PT. Elco Indonesia Sejahtera is one of the Leather tanning industry in Garut. They do not have a system to support the activities and it is reported with a paper as documentation. This research will design a green procurement system to minimize hazardous waste.The green procurement system will able to monitor the material and the supplier by using KPI (Key Performance Indicator). To design this green procurement system is by implementing ERP (Enterprise Resource Planning) with SAP Activate method. The Result of this research is an ERP system that is to help all the procurement activity with a green system. And this system is integrated with production, sales and distribution, and reverse logistics. These are will help the industry to monitor the business process.