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BENEFITS ACCRUED ON IMPLEMENTATION OF E-PROCUREMENT SYSTEM

BENEFITS ACCRUED ON IMPLEMENTATION OF E-PROCUREMENT SYSTEM. PREAMBLE. E-Procurement on IR is a part of e-governance initiative of GOI where public services are to be gradually shifted to electronic systems for transparency and effectiveness. IMPLEMENTATION OF E-PROCUREMENT ON N RLY.

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BENEFITS ACCRUED ON IMPLEMENTATION OF E-PROCUREMENT SYSTEM

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  1. BENEFITS ACCRUED ON IMPLEMENTATION OFE-PROCUREMENT SYSTEM

  2. PREAMBLE E-Procurement on IR is a part of e-governance initiative of GOI where public services are to be gradually shifted to electronic systems for transparency and effectiveness.

  3. IMPLEMENTATION OF E-PROCUREMENT ON N RLY.

  4. ACTIVITIES COVERED IN E-PROCUREMENT PROCESS • Uploading of NIT’s online • Uploading of tender documents with digital certificates of railway authorised person • Free access for downloading of tender documents from IREPS by vendors using authorised ID and password • Online bid submission digitally signed in encrypted form

  5. ACTIVITIES COVERED IN E-PROCUREMENT PROCESS • Digital tender opening without presence of vendors • Tabulation statement generated automatically • Compliance statement generated automatically • In due course, as learning gets stabilized, only tabulations will be printed and offers will not be printed. Purchase officers can view the offers electronically.

  6. BENEFITS OF E-PROCUREMENT

  7. TANGIBLE BENEFITS

  8. INCREASE IN PRODUCTIVITY • SAVING IN TIME • Instantaneous generation of tabulation statement. • Saving in average time for preparation of tabulation statements

  9. TABULATION STATEMENT TIME SAMPLE CALCULATIONS (in manual tenders)

  10. REDUCED PROCUREMENT COST • SAVINGS IN OVERHEAD COST FOR SUPPLIERS • In manual tendering approximately 50% tenders were personally dropped. Approx. half of them were outstation. • No tender dropping in e-tendering • Average saving per tender approx. Rs 4826/-.

  11. TENDER SUBMISSION COSTS SAMPLE CALCULATIONS (in manual tenders) (in Rs)

  12. TENDER SUBMISSION COSTS SAMPLE CALCULATIONS (in manual tenders) (in Rs)

  13. TENDER SUBMISSION COSTS SAMPLE CALCULATIONS (in manual tenders) (in Rs) IN RCF AVERAGE SUBMISSION COST PER TENDER IS Rs 9008/- approx

  14. REDUCED PROCUREMENT COST • SAVINGS FOR SUPPLIERS- TENDER SUBMISSION (Continued) • E-Tenders uploaded from 25/8/08- 31.3.09 are 3286 in NR & 714 in RCF • Roughly 50% offers in these tenders would have been dropped personally in manual tendering system • Approximately Rs 79,29,118/- saving of manpower costs for supplier (in 7 months). • Comparative figures for RCF are Rs 32,15,856/- • These savings will pass on to Railways

  15. REDUCED PROCUREMENT COST • SAVINGS FOR SUPPLIERS- TENDER OPENING • No vendor presence during e-tender opening • For advertised tenders approximately 75% tenders were personally represented in opening of conventional tenders. • Approx. half of them were outstation. • No personal representation in e-tendering.

  16. REDUCED PROCUREMENT COST • SAVINGS FOR SUPPLIERS- TENDER OPENING (Continued) • 295 nos of advertised tenders opened in NR through e-tendering w.e.f 25.8.2008 to 31.3.2009. (RCF 640 Nos) • Roughly 75% offers in these tenders would have been attended personally in manual tendering system • Average saving per tender approx. Rs 4826/-. • Estimated savings of Rs 10,67,752/- in 7 months. • Comparative figures for RCF are Rs 43,23,840/- • These savings will pass on to Railways

  17. TENDER DESPATCH TIME • SAVING OF TENDER DESPATCH TIME IN LIMITED & BULLETIN TENDERS SAVING OF 6-8 DAYS

  18. REDUCED PROCUREMENT COST • SAVINGS ON WEEKLY BULLETIN • Each bulletin costed Rs 25/- (cost of booklet). Distribution cost Rs 10/- extra (Postal costs) • Approximate no of copies 625 • Net Annual savings of Rs 11,37,500/- • These savings will pass on to railways

  19. REDUCED TECHNICAL SUITABILITY TIME SAVING OF 4 TO 5 DAYS

  20. REDUCTION IN ADVERTISEMENT COSTS AVERAGE REDUCTION OF Rs 10 Lakhs per month

  21. INTANGIBLE BENEFITS

  22. INCREASE IN PRODUCTIVITY • REDUCTION IN INFRUCTOUS WORK • In manual tendering hundreds of envelops were required to be opened, every quotation was machine numbered 2 times. • Tenders were examined, circled and signed • All this exercise is not required in e-tendering. • Preparation and sale of tender documents is totally eliminated.

  23. INCREASE IN EFFICIENCY • Elimination of manual processes reduces the scope for human errors & inaccuracies. • Curtailment in procurement time reduces the level of inventory requirement.

  24. TRANSPARENCY • E-Procurement helps in the decision-making process by keeping relevant information scientifically organized. • E-procurement system increases transparency and probity by keeping a traceable electronic record of transactions online.

  25. CONCLUSION • E-procurement system, integrated with an online MMIS shall in the long run lead the Indian Railways towards a completely transparent and paperless procurement system.

  26. THANK YOU

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