final ppt e-proc

8/3/2019 Final Ppt E-proc

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e-procurement of goodsand services

Group-8Sharmistha sarkhelEkta gargMeet dhediaPramugdha anand

Surojit mukherjee


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IntroductionE-Procurement means procurement of goods and services

online using the internet.

Beauty oftodays Internet Applications is that they are much

more scalable, to the size of any business.

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.


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Content

Intranet

UserProfile

WorkflowApproval

Internet

OnlineTracking

EnablePayment

Receiving

Reporting

Complete e-Procurement cycle

360 Degreesof Potential

Savings

Content

Requisition

Process


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Objectives of e-Procurement Reduce cycle times of procurement.

Increase supplier access to ensure wider participation.

Reduce costs of procurement through competitive bidding and

Reverse Auctioning.

Remove cartelisation by supplier groups (Reverse Auctioning).

Increase visibility for effective decision making.

Increase transparency.

Almost complete elimination of paperwork, for speedy and efficient

functioning


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How e-Procurement worksThe buying process usually starts with selecting your supplier .

Selecting the best supplier globally.

For purchase order requests, it can be automated and linked to the selected

products.

The purchase order processing and submission to the supplier, can be

completed over the Web.

Follow-up , tracking of the orders, including the fulfillment, delivery, receipt

and payment, can be done through Web applications,


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Features of an e-ProcurementPlatformE-procurement platforms have a full range of features.

Research

Manage vendors

Create authorizations/approval routing

Request quotes and bids

Make purchases

Check order status

Handle receivables


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Features of an e-ProcurementPlatform contd.Important sell-side capabilities that will attract vendors include:

Manage buyers

Manage catalogs

Promote products and services

Respond to quotes and bids

.

Accept orders


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Technology Solutions Use of new tools and applications.

Require one ore more servers.

Needs to be reliable, scalable, secure, accessible and manageable.

Permanent and high-speed Internet connection.

Protected from unwanted visitors.

Setup controlled and safe network through Virtual Private Network

Access and participate to E-market places relevant to your area of business.


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Choosing the Right e-Procurement PartnerEssential characteristics for an e-procurement partner include:

B2B knowledge Proven track record

Successful business model. Plan for growth and support

of e-procurement solution.

Willingness to make e-procurement

platform successful B2B marketplace interaction

Superior customer service Broad value-added services

Strong partnerships


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Benefits of e-ProcurementBenefits to Buyers

Reduction in Procurement & Contracts cycle time.

Cost Reduction.

Efficient & streamlined Procurement Processes.

New Supplier Discovery.

Close Monitoring of Activities/ Vendor Performance.

Rich MIS and Analytics.

New Improved Image.

Standardized formats and Uniform tendering practices.


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Benefits to Suppliers

Increased visibility/ Less artificial barriers.

Increased business opportunities.

Greater degree of transparency.

Cycle time reduction in participation and award of

Contract.

Supplier Enablement and Ease of Participation.


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Modes of e-ProcurementElectronic procurement activities could be effected by:-

e-Tendering

e-AuctioningReverse Auctions

e-Catalogue based buying/e-Ordering


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E-tendering


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e-Tendering System encompasses:The creation of and approval of purchase requisitions.

Publication of Invitation to Tender (ITT).

Expression of interest (EOI).

EOI management.

Pre-qualification and selection of vendors.

Publication of tender documents.

Bid submission.

Opening bids and bid evaluation.

Placement of contract within a secure environment.


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e-Auctioning/reverse auction?The traditional auction is a Forward Auction It normally involves

a seller offering an item for sale. Thus price is driven up.

In a Reverse auction, multiple sellers of a product vie for the

business of a single buyer therefore the price is driven down.

There are 3-4 flavours of reverse auction are called as,

English Auction

Dutch Auction

Sealed Bid Auction etc.


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E-auctioning/reverse auction


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Applicability of Online ReverseAuctionsReverse auction works best when

Items have well defined specifications and universally

accepted standards.

Established qualified base of vendors.

Suitable for High value, large volume goods.

Periodic rate contracts for above item types.

Often used along with Tendering for efficient price discovery .

Applicable for Technically Pre-qualified/ short listed vendors

only.


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E-0rdering/catalogue


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e-Catalogue based Buying/e-orderingIt is the obvious prevalent mode for small procurements by

individuals.

It has many obvious advantages, particularly if such an Online

Procurement Hub (Portal) is created for use of government

agencies.

Such a Hub would hold and manage electronic supplier-catalogues

of goods & services, with minimum possible prices affordable by

them.


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Secure transactions would be enabled by the Hub and

exchanged electronically between buying agencies and

suppliers.

Though success of such a venture mainly depends upon a large

enough size of participants like: -

1. It is superior to buyer & suppliers establishing direct link.

2. Suppliers need to maintain / update only on e-catalogue on the Hub and

establish only one interface to sell to many buyers.

3. It could be highly useful for all the routine small item purchase of

government agencies and even be used for bigger items.


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It has been in operations since 1960s and have been expanding rapidly.

It was first electronic based payment system.

An electronic fund transfer is a financial application of EDI.

To use EFT to clear payments and settle accounts.

A landmark came in this direction with the development of digitalcurrency10.

The nature of digital currency or electronic money mirrors that of papermoney as a means of payment.

As such, digital currency payment systems have the same advantages aspaper currency .

E-PAYMENT


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E-payment


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TYPES OF E-PAYMENT


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Companies shifted to e-procurement

FORD

E-PROCUREMENT TECHNOLOGIES PVT. LTD

IBM

LABINAL

DGS&D


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E-PROCUREMENT IN

DGS&D


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Directorate General of Supplies & Disposals

(DGS&D)

Presently under Ministry of Commerce & Industry, Govt. of India.

Inducted engineers through UPSC in Group-A cadres of Indian Supply Service (ISS) and

Indian Inspection Service (IIS) in 1961.

Purchase directorates (14) organized commodity wise to facilitate maintenance of data,

market intelligence, technological advancement in product and processes.

Quality Assurance offices located near users and industry to facilitate quick response and

interaction.

Technical and multi-disciplinary workforce expert professional field of Public Procurement.


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DGS&D- ROLEDGS&D is presently engaged in diversified activities like

Facilitates over 10,000 bidders including 2600 DGS&D registered suppliers.

Pre-despatch inspection against DGS&D contracts and direct orders on request.

Formulate procurement policies and procedures.

Cargo clearance at major ports.

Provide consultancy in the procurement management.

Nodal agency to provide and implement e-procurement platform.

Provides single point contact for vendors and Govt users for procurement of

commonly used Goods.


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POTENTIAL LIST OF SERVICES BY

DGS&D Registration of firms

Pre-bid conference

Framing technical particulars

Tendering/Bidding and bid evaluation

Award of Contracts/ Rate Contracts/Supply Orders

Inspection, delivery and receipts of Goods

Payments

Quality audit

MIS reporting

Vigilance


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E-PROCUREMENT WEB BASED

FRAMEWORK INDGS&D

E-INVITATION

E-BIDDING

E-EVALUATION

E- PAYMENTS


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List of 7 Certifying authorities

Safescript Ltd, Chennai

NIC, New Delhi

Institute for Development and Research in Banking Technology,

Hyderabad(IDRBT).

TCS, Mumbai.

MTNL, Delhi.

Customs and Central Excise, New Delhi.

N Code Solutions (Division of Gujarat Narmada Valley Fertilizer


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DGS&D as leader in e-procurement

DGS&D started use of Computers in their procurement activities in 1992.

With the IT Act 2000,DGS&D first time successfully achieved the e-biddingand placed in-house

e-module in operation in 2002-03.

from 2006, DGS&D has switched over to e-procurement

DGS&D has been nominated to cater to the implementation of e-procurement in all Central/State Governments

DGS&D has a fully functional and tested e-platform providing end to endsolution for e-procurement.

DGS&D has already received many requests for e-procurement platform.

MOUs have been/being signed for using DGS&D e-procurement platformwith NCT for Commonwealth games, Indian Navy etc.


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CONCLUSION

Requires dedicated planning and some investments.

It help to better manage suppliers

Reduces procurement costs.

It helps to manage changes in company culture,

organization and processes.

E-Procurement will improve your overall businessperformance.

It can benefit business of all sizes.


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Thank you

final ppt e-proc

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