BENEFITS ACCRUED ON IMPLEMENTATION OF E-PROCUREMENT SYSTEM
description
Transcript of BENEFITS ACCRUED ON IMPLEMENTATION OF E-PROCUREMENT SYSTEM
BENEFITS ACCRUED ON
IMPLEMENTATION OFE-PROCUREMENT SYSTEM
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.
PREAMBLE
IMPLEMENTATION OF E-PROCUREMENT ON N RLY.
Phase Date of Implementation
Details
I July 05 Pilot project implemented using Application Service Provider Model (ASP). M/s HCL was the selected ASP during this phase
II Aug 08 M/s CRIS set up centralized Data Center using Railways own website i.e. ireps.gov.in
III Nov 08 In NR 100% e-tendering commenced. 3716 tenders uploaded upto 30.4.09
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
• 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.
ACTIVITIES COVERED IN E-PROCUREMENT PROCESS
BENEFITS OF E-PROCUREMENT
TANGIBLE BENEFITS
INCREASE IN PRODUCTIVITY
• SAVING IN TIME
• Instantaneous generation of tabulation statement.
• Saving in average time for preparation of tabulation statements
Conventional system EP system Saving
NR 23 days 1 day 22 days
TABULATION STATEMENT TIME
Section
Tender No
Item Opened on
Tabulation vetted on
Days
P05 4005080429
3 Phase A/c crank 23.9.08 31.10.08 38
P06 4006081799
MS Round 20mm 5.5.08 17.5.08 12
P08 4008086513
Signalling cable 30 core
20.8.08 22.9.08 32
P08 4008086571
Signalling cable 6 Core
15.9.08 17.10.08 32
P09 4009080045
Aluminium paint 23.9.08 13.10.08 20
P19 4019082483
A-9 Automatic Brake valve
10.6.08 16.6.08 6
Average 23.3
SAMPLE CALCULATIONS (in manual tenders)
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/-.
TENDER SUBMISSION COSTS
Tender No No of offers
Location of firms
Approx. Travel costs
Approx staying costs
Emoluments (proportionate)
1103084543 4 Delhi-3,
Mum-1
Nil
422/-
Nil
500/-
200/- *3
800/-
1101091514 3 Bhopal-1,
Delhi- 1,
Lko-1
279/-
Nil
222/-
500/-
Nil
500/-
400/-
200/-
400/-
1101091592 5 Mum-1,
Dadra-1,
Lko-2,
Delhi-1,
422/-
375/-
222/- *2
Nil
500/-
500/-
500/- *2
Nil
800/-
800/-
400/- *2
200/-
1102095972 8 Delhi-7,
Varanasi-1
Nil
306/-
Nil
500/-
200/- *7
400/-
(in Rs)SAMPLE CALCULATIONS (in manual tenders)
TENDER SUBMISSION COSTS
Tender No No of offers
Location of firms
Approx. Travel costs
Approx staying costs
Emoluments (proportionate)
1105093254 4 Chennai-1
Mumbai-1
Vadodara-1
Delhi-1
528/-
422/-
355/-
Nil
500/-
500/-
500/-
Nil
1200/-
800/-
800/-
200/-
1107091063 1 Kanpur 194/- 500/- 400/-
4108097011 20 Jaipur-2
Delhi-12
Noida-1
Gorakhpur-1
Alwar-1
Vadodara-1
Hyderabad-1
175/-*2
Nil
Nil
312/-
140/-
355/-
437/-
500/-*2
Nil
Nil
500/-
500/-
500/-
500/-
400/-*2
200/-*12
200*12
400/-
400/-
800/-
1200/-
SAMPLE CALCULATIONS (in manual tenders) (in Rs)
Tender No No of offers
Location of firms
Approx. Travel costs
Approx staying costs
Emoluments (proportionate)
4107091086 5 Kolkata-4
Mumbai-1
426/-*4
422/-
500/- *4
500/-
800/- *4
800/-
1111093504 4 Kolkata-1
Delhi-1
Jalandhar-1
Ludhiana-1
426/-
Nil
165/-
168/-
500/-
Nil
500/-
500/-
800/-
200/-
400/-
400/-
AVG/Tender 6 938/- 1444/- 2444/-
AVERAGE TENDER SUBMISSION COST PER TENDER 4826/-
TENDER SUBMISSION COSTSSAMPLE CALCULATIONS (in manual tenders) (in Rs)
IN RCF AVERAGE SUBMISSION COST PER TENDER IS Rs 9008/- approx
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
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.
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
TENDER DESPATCH TIME
• SAVING OF TENDER DESPATCH TIME IN LIMITED & BULLETIN TENDERS
Tender Mode
Dispatch Time
Receipt by Vendor
Total
Manual 2/3 days 5/6 days 7-9 days
E-tender 1 day Same day 1 day
SAVING OF 6-8 DAYS
• 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
REDUCED PROCUREMENT COST
REDUCED TECHNICAL SUITABILITY TIME
TENDER MODE AVERAGE TIME
MANUAL 5-10 Days
E-TENDER 1-5 Days
SAVING OF 4 TO 5 DAYS
REDUCTION IN ADVERTISEMENT COSTS
Period Total advertising expenditure (Rs)
Average monthly expenditure (Rs)
May08 -Aug 08
(pre ireps period)
1,31,31,473 32,82,868
Sept08- March 09
(post ireps period)
1,56,07,889 22,29,698
AVERAGE REDUCTION OF Rs 10 Lakhs per month
INTANGIBLE BENEFITS
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.
INCREASE IN EFFICIENCY
• Elimination of manual processes reduces the scope for human errors & inaccuracies.
• Curtailment in procurement time reduces the level of inventory requirement.
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.
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.
THANK YOU