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PRESENTATION ON E-PROCUREMENT

PRESENTATION ON E-PROCUREMENT. BY Mrs. ARCHANA TALWAR SR. AO., MR. ARUN KR. CHAUDHARY SR. AO. & MR. RAVINDER KUMAR SR.AO.

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PRESENTATION ON E-PROCUREMENT

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  1. PRESENTATION ON E-PROCUREMENT BY Mrs. ARCHANA TALWAR SR. AO., MR. ARUN KR. CHAUDHARY SR. AO. & MR. RAVINDER KUMAR SR.AO.

  2. A three day training programme on e-Procurement conducted by the Administrative Staff College of India, Hyderabad from 30-6-14 to 2-07-14 was attended by the officers from HVPNL namely Mrs. ArchanaTalwar, Sr. AO/Budget, Mr. Arun Kr Chaudhary, Sr.AO/Vigilance and Mr. Ravinder Kumar Sr.AO/Tariff.

  3. Assumptions of A S C I about participants • Participants are Managers engaged in materials function or are IT managers entrusted with E-Procurement implementation. • Procurements in the participants’ organizations are handled through manual or computerized systems. • As Procurement Managers they have multiple responsibilities -Formulating and implementing procurement plans -Floating tenders, receiving offers, negotiations -Vendor development -Managing a team of professionals, employees as well as from outsourcing vendors

  4. What is E-PROCUREMENT • E-procurement (Supplier Exchange) is purchase and sale of supplies and services between business to business or business to consumer or business to government through the Internet. • The e-procurement value chain consists of indent management, e-tendering, e-Auctioning, vendor management, Purchase order integration, order status, ship notice, e-invoicing, e-payment and contract management etc.

  5. Why e-Procurement

  6. Before e-GP 3 Situation before eProcurement TIP OF THE ICEBERGTender scam busted in MCD officeTribune News Service New Delhi, August 19The Crime Branch of the Delhi Police today claimed to have unearthed a tender mafia racket in the Municipal Corporation of Delhi with the arrest of eight contractors and an employee of the corporation.

  7. Issues in Manual Mode of Procurement • Lack of standardization • Discrimination • Inadequate transparency • Physical platform facilitates cartels - suppresses competition including physical threats to bidders during filing of bids. • Pressures on dept. officials • Inordinate delays in tender finalization • Human interface – Manipulations, tampering, Subjective evaluation • Adverse Press coverage on Tender fracas

  8. A comparison • Manual Tendering is expensive whereas e-tendering has fixed costs and is economical • Manual Procurement has restricted monitoring whereas e-Procurement is anytime anywhere. • In manual tendering no work on holidays and after office hours whereas in e-procurement bidding is possible on holidays and after office hours. • Manual procurement prone to human errors whereas e-Procurement is automated and accurate. • In Manual procurement contents are not shareable whereas in e-procurement contents are shareable. • In Manual procurement wastage of space to store whereas in e-procurement lifelong storage in softcopy. • In manual procurement record is difficult to retrieve whereas in e-procurement it is one click access.

  9. Benefits of eProcurement • No bidding after due date and time. Contractors are not permitted to submit electronic bids after stipulated date and time of tender opening. • Bids can not be opened before due date and time. • Bids can only be opened by Authorized officials. • Reduces purchasing cost and improves efficiency • Standardized purchasing processes across the organization • Reduces administrative costs with better effectiveness • Single Stop Shop • Increases price transparency • Increases internal efficiency • Best value for money • Paper consumption is less and environment friendly.

  10. Some more benefits • Confidentiality, integrity and authenticity of all transactions and data • Enhanced citizen confidence. • Efficient procurement process and lower procurement cycle time. • Optimized inventory levels • Value-for-money • Enhanced decision-making capabilities through MIS. • Greater participation and competition among suppliers. • Use of digital signatures for E-Transections. • Use of Public Key Infrastructure (PKI) for data encryption/Decryption.

  11. BENEFITS TO THE ORGANIZATION • Completely automated process • Shortens Procurement cycle. • Economical and Environment friendly • Greater Transparency. • Work culture improvement in the Organization. • System aided Evaluation process • Minimize storage space • Organizational growth by change in perception • Ensure highest level of security.

  12. BENEFITS TO THE ORGANIZATION • The information regarding purchase order or acceptance letter and other post contract correspondence etc. is conveyed to the concerned contractors through e-mail. • The e-Procurement system is governed by digital security features as provided under Indian IT Act 2000. • No vendor can interact with the e-Procurement portal unless they possess a legally valid digital certificate from a licensed certifying authority. • Public Key Infrastructure (PKI) for data encryption/Decryption. • Time stamp by certifying Agency.

  13. BENEFITS TO SUPPLIERS/CONTRACTORS • Anytime and anywhere bidding. Contractors can participate and submit online offers in e-Tenders directly from the website. • Fair, Free, Fearless and Transparent participation for vendors. • No dependence on Newspapers, Couriers, banks etc. all tender notices are published on organization/Govt. website from where tender documents can be downloaded by the contractors directly. • No administrative hassles. • All activities can be carried out from any computer. The offers are submitted electronically with Digital signatures.

  14. BENEFITS TO SUPPLIERS/CONTRACTORS • Economical due to saving on Travelling cost. • Reduces efforts & cost of bidding. • No tenders can be missed because of distance and multiple tenders at different places. • Can submit bid on last minute. • The tenderers can see the tabulation statement of all offers after opening of advertised tenders and also the status of their tenders. • The security money can be deposited electronically.

  15. Key e-Procurement areas • e‐Tendering, • e‐Auction or Reverse Auction, • e‐Catalogue/Purchasing, • e-Market Place

  16. WHAT IS E-TENDERING • E-Tendering is a process of carrying out entire Tendering Cycle Online, including submission of Price Bid to harness Efficiency, Economy and Speed of Internet. • In other words, the E-tendering process means transformation from a traditional Tendering System to an online process making huge advances in Efficiency, Transparency, Data Storage and Retrieval Systems.

  17. E-Auctions are of two types – e-RA -- Reverse Auctions this is used for the Buying/Purchasing process e-FA -- Forward Auctions this is used for the Selling/Marketing process. A variation of this process is used for the Buying process where there are discounts to be incremented so that the rate contract can be entered into at the maximum discount on the list price of the manufacturer.

  18. General Requirements of e-Procurement System • Addresses the Requirement Of GFR: For public procurement of goods, services, works compliance with GFR rules, processes, roles are mandatory requirements and system shall be designed as per workflow with adequate security measures. • Confidentiality and Integrity Information: As the platform transacts confidential procurement data and is exposed to several security threats, it requires employing combination of security technologies and security best practices. • Addresses CVC Guidelines: Should meet guidelines issued from time to time by CVC. • System Adaptability and Customization: Should have templates to adapt bidding methodologies.

  19. Software packages for E-Procurement • Ariba ( now acquired by SAP) • Emptoris • Oracle • Perfect Commerce • My SAP SRM • SAS SRM • Vertical Net

  20. Current Scenario of e-Procurement in States

  21. indicative List of PSUs implementing e-GP systems

  22. Indicative List of PSUs implementing e-GP systems E-Tendering module includes Vendor registration and Indent management modules

  23. Riskofe-ProcurementSystems • Security -Compromise through potential weaknesses in the system • Availability -The need for services to be `on’ all the time • Authentication - Masquerading identity or repudiation of message • Access -To ensure users only have access to the functions required to do their jobs • Audit Trail -Recording of who did what and when at various key stages of the purchasing process • Liability -Through employment or legal contractual obligations • Survival: E-procurement service is rapidly growing multiple standards. Both suppliers and buyers are uncertain of which service provider will survive or become obsolete.

  24. Computer Fraud Breach by external party - Virus affecting the system - Denial of service - Intellectual property Internal abuse and misuse External attack by various parties whether corporate espionage or terrorists Email viruses such as NIMDA which have capability of crippling systems Flooding a computer’s internet connection with requests to disrupt traffic flow Misappropriation or release of intellectual property

  25. Remedial measures • We should remember that it’s important to make sure that the procurement solution we are using is efficient, can support the entire supplier network and is easy to use for both us and our suppliers. Keeping these things in mind when choosing or evaluating a procurement solution can be an important step on our path to reaching more savings in our procurement. • Before the implementation of e-procurement, the organization must first clearly define the business problems its e-procurement solution is intended to address. Furthermore, before an e-procurement solution can be deployed, the department must undergo thorough procurement process reengineering

  26. Department should encourage using new e-procurement technologies through intensive training and educational sessions with end-users. • e-procurement needs to be integrated into the heart of a Department’s IT infrastructure. This would also solve the problem of directing a lot of resources for the planning and execution of e-procurement implementation.

  27. Thank You BY SMT. ARCHANA TALWAR SR.AO, MR. ARUN KR. CHAUDHARY, SR.AO & MR. RAVINDER KUMAR SR.AO.

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