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Government Supplies Department

Learn about the development of G2B applications and key statistics for procurement in 1999. Explore the IT systems maintained by the Government Supplies Department for efficient procurement processes.

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Government Supplies Department

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  1. Government Supplies Department Electronic tendering and beyond: Further development of G2B applications Presentation to IIAC by Stanley Wong Deputy Director of Government Supplies

  2. Government Supplies Department • Purchasing agent for government departments and non-government public bodies (including Hospital Authority) acquiring high value goods and services • Store and deliver common user items

  3. Key Procurement Statistics 1999 • Total value of purchases : HK$6,794 million (US$873 million) • Registered suppliers : 4,864 • Tender invitations issued : 44,680 • Tender offers received : 9,711 • Contracts awarded :4,124

  4. Key Procurement Statistics 1999 • Major categories of purchases • computer equipment and software : HK$2,513 million (US$324 million)37% • pharmaceuticals : HK$1,288 million(US$166 million)19% • aircraft and spares: HK$737 million (US$95 million)11% • hospital and medical equipment : HK$413 million(US$53 million)6% • telecommunications equipment and spares: HK$272 million(US$35 million) 4%

  5. Key Procurement Statistics 1999 • Major categories of purchases • scientific, analytical and laboratory equipment and consumables : HK$190 million (US$25 million)3% • medical consumables : HK$164 million(US$21 million)2% • photographic and audio/video equipment and consumables : HK$146 million(US$19 million) 2% • other categories : HK$1,071 million(US$138 million) 16%

  6. Key Procurement Statistics 1999 • Purchased products were manufactured in 38 different countries or administrative regions • Less than 2% of products originated in Hong Kong • Approx. 90% of tenders submitted by branches/agents in Hong Kong

  7. IT Systems Being Maintained • Two mid-range based computer systems • Goods On-line Ordering, Distribution, Stock Management and Accounting Network System (GOODSMAN) • Procurement Management System Upgrade (PMSU) • One web-based system • Electronic Tendering System (ETS)

  8. GOODSMAN • The system supports • 2 LANs with 43 and 15 workstations at GSD Headquarters and GLC • 285 remote terminal users • Major functions of the system provided to remote terminal users include • On-line ordering • On-line Enquiry • The system was enhanced in June 1999 by a barcode function which • Improves the efficiency of warehouse operation • Improves the accuracy of stock verification, picking and goods receipt functions

  9. PMSU • Supports more than 100 user licenses installation and Chinese character processing • Electronic Data Interchange (EDI) ready • Internet ready with web enabled version available • Enables GSD to enhance tender processing, the evaluation of offers, order/contract monitoring and supplier performance monitoring • Establishes an on-line linkage between remote clients and GSD Procurement Division to facilitate information interchange

  10. Electronic Tendering System • Services provided by electronic means to subscribers • registration of suppliers • notification of tenders • issue of tender documents • receiving and responding to enquiries • submission of tender offers • notification of contract award • Suppliers have choice between manual system and electronic tendering system

  11. No. of subscribers 403 Operating Statistics (as at 22 September 2000)

  12. No. of tenders issued through ETS (total value HK$669 million) 526 Operating Statistics (as at 22 September 2000)

  13. No. of tender documents downloaded 2,666 Operating Statistics (as at 22 September 2000)

  14. No. of offers received 355 Operating Statistics (as at 22 September 2000)

  15. Operating Statistics (as at 22 September 2000) Percentage of e-tenders out of all tenders issued 72% of total number of tenders 75% of total value of tenders

  16. Privacy Authenticity Total Security Solution Integrity Non-repudiation Security Considerations Application Security Framework

  17. Points to note • Technical infrastructure, including security features, have worked satisfactorily • Take up rate slow but rising steadily • Suppliers may need to redesign their business processes

  18. Supplier GSD System Supplier Supplier Supplier other public sector purchasers Supplier Supplier GSD System Supplier private sector purchasers Supplier Supplier Supplier Future developments • Can lead to wider system linking suppliers with many different public sector and private sector organizations initial system extended system

  19. Future Developments • Enhancement to GOODSMAN • To support international barcodes • To support web-based ordering of common-user items • To accept EDI interface with Hospital Authority • Enhancement to PMSU • To provide online interface with Pharmaceutical Supplies System of Hospital Authority in EDI format • To cope with ETS enhancement to support CTB tenders and eCert • To cope with GOODSMAN enhancement to support international barcodes • Enhancement to ETS • Extension of ETS to tenders with value above HK$10 million • Other parts of public sector may also use electronic tendering

  20. Wider applications of e-commerce • Electronic marketplace • For low value purchases • Purchasers display their requirements and potential suppliers respond with their offers • Electronic products catalogues • range of available products and prices displayed in purchasing organization’s product catalogue • suppliers maintain the content of their page of product catalogue, provide updates to product features and prices • end-users select from catalogue the product brand that is available in the most favourable terms

  21. How will the Internet change Government Procurement? • Suppliers can offer more comprehensive packaging of related products and services with flexibility to adapt to unexpected changes • Increases power of the purchaser vis à vis the supplier • more comprehensive product search and analysis to find best available offer • your alternative supplier is just a mouse-click away • Government procurement may become truly international • suppliers may seek access to a wider range of government markets

  22. How will the Internet change Government Procurement? • Possibilities for government purchasers • governments may eventually need to follow the trend to Internet trading • procurement rules may need to be modified to take account of the changing environment • purchasers should retain flexibility to adapt to rapid changes in product features, prices and package deals

  23. Information Systems Strategy Study (ISSS) AIM ?

  24. Information Systems Strategy Study (ISSS) • To assess the information technology development potential • To quantify the IT requirements of GSD in the next 5 years • To assess the following IS opportunities in arriving at a portfolio of strategic applications: • To enhance the GOODSMAN system • To enhance the PMSU system • To enhance the relevant PC-based applications of • Allocation Stores Ledger Posting System (ASLPS) • Feasibility study on computerization of inventory and uniform records maintained in departmental supplies section

  25. Information Systems Strategy Study (ISSS) • To explore on the following IT opportunity: • Contract Management (using Internet technology) • Auto-replenishment of stock by suppliers • Business improvement opportunities with the use of IT with a view to enhancing productivity, reducing costs, and improving customer service • Electronic Payment (with GSD contractors) • Electronic Tendering and Electronic Procurement for other bureaux/departments

  26. Conclusions • Successful migration to e-Commerce requires: • User maturity • An advanced, stable technological infrastructure • Procurement rules may need to be modified to take account of the changing environment

  27. END

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