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The Case for a Generic e-Procurement Model

The Case for a Generic e-Procurement Model. J Satyanarayana 7 th June, 2004. Agenda. Overview of public procurement Requisites of Electronic Public Procurement A Generic e-Procurement Model Next Steps. Dimensions of Public Procurement. Large Volume ~ Rs 3,00,000 crores annually

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The Case for a Generic e-Procurement Model

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  1. The Case for aGenerice-Procurement Model J Satyanarayana 7th June, 2004

  2. Agenda • Overview of public procurement • Requisites of Electronic Public Procurement • A Generic e-Procurement Model • Next Steps

  3. Dimensions of Public Procurement • Large Volume • ~ Rs 3,00,000 crores annually • Great diversity • Goods, Services & Works • Widely dispersed • Central, State & Local Governments • Central & State PSUs • Statutory Bodies • Local Authorities • Radical reforms needed …to enhance • Transparency • Speed • Efficiency

  4. Range of Procurement Services • Indent Generation & Approval • Indenting • Procurement Process • Tenders, Auctions, Reverse Auctions, Rate Contract, Catalogue Buying • Demand Aggregation • Bid Evaluation • Award & Purchase Order • Supply Management • Quality Management • Inventory Management • Payments Management • MIS & EIS

  5. Categorization of Procurements • By Category of Goods & Services • Goods • Services • Civil Contracts • By Nature of Procurement • eTenders • Rate Contract & Catalogue Buying • Auctions, Reverse Auctions • LCB, NCB, ICB • By size / Volume of procurement • High Value, low volume • Low value, High Volume • By Portfolio of services needed • Requisition, Bid Process • Evaluation, Award, PO • Supply, Quality check, Inventory Management • Payment, Accounting, Audit • MIS, EIS

  6. Procurement process Matrix

  7. Business Models

  8. A Generic e-Procurement Model

  9. Requisites of the model • Neutral to Technology or product • Creates a multi-player, multi-technology environment • Gives a choice of service providers • to the buying departments • to the suppliers • Scalable, secure, interoperable • Promotes • Competition • Cost-effectiveness • Value-added services • Leads to procurement reform

  10. Process Requirements of Model

  11. Business Requirements of Model • Different Revenue Models to suit different categories of procurement processes • % of value of procurement • Transaction-based • Slabs to accommodate volume discounts • Permit different PPP models • Licensing • ASP • JV • Mechanism in place to enforce rigid SLAs • Rapid growth of eGP market

  12. e-Procurement Technology Model BUYERS XML HG LG XML XML e-Procurement Exchange XML XML LS HS XML XML XML LW HW Gateway XML Suppliers

  13. Next Steps

  14. Suggested course of action • Commission a comprehensive study • Identify a partner • for creation of National eGP Infrastructure • Create a Core Governance Group for eGP • Bring in a comprehensive legislation on eGP

  15. Scope of the comprehensive study(1) • Study of 6 different procurement models • Study of different procurement processes • Study of international best practices • Service definitions • BPR • Normalization of procurement practices • Design of technology model • Procurement model • Gateway & exchange • Common registration & Single-Sign-On • Metadata standards • Security, Digital Certification • Delivery Channels

  16. Scope of the comprehensive study(2) • Design of a Business Model • PPP Model(s) • Revenue Model • Principles for enrolment in Exchange • Org Model & Governance Structure • Design of Change Management Plan • Process Reform • HR Management • Legal Changes • Organizational Reform • Conduct of POC • Design of RFP • Bid Process Management

  17. Thank You ceo@nisg.org

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