E-Procurement: Process, Objectives and Benefits

E-Procurement Process

E-Procurement means procurement of goods and services online using the internet. Ideally, it covers the full ‘life cycle of procurement. The intention is to automate, possibly, the entire procurement process, along with tender bid submission and payments by suppliers, in an online web-based real-time environment. E-Procurement could resolve many of the constraints/delays of traditional procurement

  • Tender notices are up-loaded and available on web-site
  • Firms to get registered at portal free of cost
  • Bidders/Indenters to obtain Digital Signature Certificates (DSC) from any certified agency
  • The tender offers are submitted on-line
  • Tenders are opened on-line.

All accompanying documents are scanned and submitted on-line after certification by digital signature.

Differences between manual procurement and electronic procurement

Manual Tendering System

• Longer Procurement Cycle

• Expensive

• Paper Based Procurement

• Restricted Mobility

• No work on Holidays

• Prone to Human errors

• Physical Security

• Wastage of space to store bids

• Not easily retrievable

Electronic tendering (e-procurement)

• Shorter Procurement Cycle

• Economical – Fixed Cost

• economical friendly

• anytime , anywhere

• any time

• very less chance of error

• Fool proof Security

• Lifelong storage on CD

• Easily Retrievable, one click access

Objectives of e-procurement

  • Transparency: Introduce the maximum extent of transparency in public procurement by making the required information available in the internet.
  • Cost Savings through higher competition: A result of wider publicity to Government procurement opportunities.
  • Cost savings through demand aggregation: the ability to aggregate Government departments’ demand to leverage buying power with then supply market.
  • Reduced inventory costs: Improved planning and management of inventory leading to lower levels of inventory.
  • Internal arbitrage: Ensuring consistency in goods and services costs at the best price across all departments at item level.
  • Consistent and sustainable contractor development: Enabling pre-qualified vendors the opportunity to access other government departments.

Transactional effectiveness: Eliminating or automating nonvalue adding steps within the procurement to enable efficient and effective processes.

Benefits of e-procurement

Benefits to the tendering authority

  • Completely Automated Process
  • Shortens Procurement Cycle
  • Economical and Environment Friendly
  • Greater Transparency
  • Improvement in work culture in the departments
  • System aided Evaluation process
  • Minimize Human errors
  • Minimal Storage Space
  • Lesser hassle of communication and administration

Benefits to suppliers

  • Anytime & Anywhere Bidding
  • Fair, Free and Fearless participation for vendors
  • No dependence on Newspaper, Courier
  • Zero Administrative hassles
  • Can carry out all activities from any compute
  • Economical – saving on Traveling cost
  • Reduces efforts & cost of bidding
  • No tenders can be missed because of distance
  • Can submit bid on last minute

E-procurement module

E-Procurement module is the complete e-tendering process starting from online publishing of Tender, Enquiries, Online bid submission by the bidders, online bid opening, Online bid evaluation, and publication of award of contract on Portal. Digital Signature Certificate is mandatory for e-Procurement module.

Complete Cycle of e-Procurement Module

  1. Creating a tender
  2. Publishing tender
  3. Bid submission
  4. Technical bid opening
  5. Technical bid evaluation
  6. Financial bid opening
  7. Financial bid evaluation
  8. Award of contract

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