Prof. Mahendrawathi ER ST MSc PhD (in white) with the Abmas Team of the ITS Information Systems Department during training on the use of the Andal App for MSME owners.

ITS Campus, ITS News — Amidst rapid technological advancements, many Micro, Small, and Medium Enterprises (MSMEs) still rely on intuition to manage inventory. In response, the Community Service Team (Abmas) from the Information Systems Department of the Sepuluh Nopember Institute of Technology (ITS) developed the Andal App, a smart application for MSMEs to manage inventory more efficiently.

The head of the Abmas Team, Prof. Mahendrawathi ER ST MSc PhD, explained that inventory management based solely on intuition often creates two problems for MSMEs. First, businesses often run out of stock of items that are in high demand. Second, unsold goods accumulate, which risks expiring and holding up capital. “This is a classic problem in supply chain management theory,” said the woman, often known as Mahe.

He added that this issue is even more crucial because most MSMEs have limited capital. The accumulation of goods due to improper inventory management prevents capital from circulating optimally. “With limited capital, they often struggle to prioritize which items to purchase first,” explained the Denpasar-born lecturer.

One of the owners of the Khayun Shop MSME is trying out the Andal App application developed by the Abmas team from the ITS Information Systems Department.

Therefore, Mahe and his team created the Andal App to address this issue by implementing a simple inventory management method called ABC classification. This method allows MSMEs to identify items that contribute significantly to revenue and prioritize them for stock purchases. “We can differentiate, ‘Oh, this item is categorized as essential and must not run out,'” he said.

Mahe further explained that the application will group items into three main categories: A, B, and C. Category A represents priority items with the highest value, ensuring inventory levels are maintained. Category B contains medium-value items, while category C encompasses low-value items. Based on these categories, the application will provide ordering schedule recommendations to ensure MSMEs avoid inventory shortages or excesses.

However, Mahe stated that the biggest challenge in implementing this application is changing the habits of MSME owners who diligently record data. To address this, the application has been designed to be more flexible in recording inventory data. “We understand that shop owners are busy, so every transaction doesn’t have to be entered; it can be summarized and recorded just once at the end of the day,” explained the Professor of the ITS Information Systems Department.

Workshop on introducing the Andal App to MSMEs by Prof. Mahendrawathi ER ST MSc PhD (standing) at the Department of Information Systems, ITS

As a public awareness campaign, the Abmas team also held an introductory workshop on Andal App, attended by MSME owners in Surabaya on November 6th. Going forward, this innovation will continue to be developed and developed into an Android app available on the Play Store called SiStock. Currently, the app is in the trial phase, with 14 MSME owners providing feedback on its features and interface.

The Andal App is part of ITS’s contribution to supporting Sustainable Development Goals (SDGs) point 8 (Decent Work and Economic Growth), which aims to promote inclusive economic growth and create decent jobs. This innovation is also expected to help MSMEs improve efficiency and achieve better revenue. “With this app, it is hoped that shop owners can provide goods accurately in terms of type, quantity, and timing, thereby creating new added value,” Mahe concluded hopefully. (ITS Public Relations)

Reporter: ION19