E-Procurement Experience in Korea : Implementation and Impact June 2012 Ho In Kang | Administrator...
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Transcript of E-Procurement Experience in Korea : Implementation and Impact June 2012 Ho In Kang | Administrator...
e-Procurement Experience in Korea :Implementation and Impact
June 2012
Ho In Kang | AdministratorPublic Procurement Service (PPS), the Republic of Korea
Contents
Ⅰ. Public Procurement in Korea
e-Procurement in Korea
Impact of e-Procurement
Future Goals
Ⅱ.
Ⅲ.
Ⅳ.
Public Procurement in KoreaPublic Procurement in Korea
Public Procurement Service (PPS)
The government’s central purchasing agency
Covers central govt. procurement above threshold
Public Procurement Total (2011) : USD 100 billion (10% of GDP)
Public Procurement Size
Local govt. and public enterprises may use PPS’s procurement services by request
Goods & Services
Construction Works
above $100,000
above $3,000,000
PPS$34 bnIndividual
Agencies$66 bn
4
Korea ON-line E-Procurement SystemKorea ON-line E-Procurement System
KONEPS (Korea On-line E-Procurement System)
Govt. e-Procurement system operated by PPS Transactions via KONEPS
Total Public Procurement
Public Procurement via KONEPS
e-Bay
Used by 44,000 public entities* and 228,000 suppliers
One of the largest e-Commerce systems in the world
* Figure accounts for most public entities, except 20 public enterprises that operate independent e-Procurement systems
$65.7 bn
e-Bay(2010)
$43 bn
$77 bn
55%
$56 bn
$92 bn
60%
$76 bn
$104 bn
73%
6
2004 2007 2010 e-Bay(2010)
e-Procurement in Koreae-Procurement in Korea
Single Window to Public ProcurementAll tender notices are published through KONEPS
End-to-end Functional CoverageKONEPS processes the entire procurement procedures through sub-systems: e-bidding, e-contracting, e-ordering from online shopping mall and e-payment
“KONEPS”
KoreaON-lineE-ProcurementSystem
“KONEPS”
KoreaON-lineE-ProcurementSystem
e-Payment
e-Bidding e-Contracting
Online
Shopping
Mall
e-Ordering
e-Bidding e-Contracting
Online
Shopping
Mall
e-Ordering
7
Before
Certification-Related agencies
Industry Associations
Ministry of Strategyand Finance
e-Procurement in Koreae-Procurement in Korea
Credit Rating Companies
Surety Companies
ConstructionAuthorities
National Tax Office
Bid
Supplier
Public Buyer
One Stop Service through Data IntegrationKONEPS exchanges data with 140 external info systems for supplier information, bid evaluation, bonds and payment, minimizing paper document submissions
8
Certification-Related agencies
Ministry of Strategyand Finance
ConstructionAuthorities
National Tax Office
Industry Associations
Credit Rating Company
Surety Companies
Korea Financial Telecommunications& Clearings Institute
Contract Delivery
After
One Stop Service through Data IntegrationKONEPS exchanges data with 140 external info systems for supplier information, bid evaluation, bonds and payment, minimizing paper document submissions
e-Procurement in Koreae-Procurement in Korea
e-Bid
KONEPS
Supplier
Public Buyer
8
EDI(e-Document Interchange)
EDI(e-Document Interchange)
e-Bidding
e-Payment
e-Bidding
e-Payment
[2000][2000]
[2001][2001]
KONEPSSingle Portale-Contracting
KONEPSSingle Portale-Contracting
[2002][2002]
Online Shopping Mall
Mobile Bidding
Online Shopping Mall
Mobile Bidding
[2003~present][2003~present]
KONEPS - Implementation and EvolutionKONEPS - Implementation and Evolution
Phased Transition to e-Procurement
9
Increased participation by SMEs
Impact of e-ProcurementImpact of e-Procurement
Increased Opportunities for SMEs
- 70,864 SMEs (2001) 147,186 SMEs(2003)
* Foreign procurement, construction mgt.
and superintendence not included
SMEs share in Online Shopping Mall Sales
SMEs’ registration for bid participation doubled since KONEPS (2002)
- 26.6% (2006) 61.5% (2008) 74.9% (2010)
$4.5 bn(55%)
$13.9 bn(75%)
$8.2 bn
$17.9 bn
2003 2010
SMEs’ Share in PPS-conducted procurement
PPS contracts for goods
Contracts awarded to SMEs
11
Catalyst for the growth of e-Commerce
Impact of e-ProcurementImpact of e-Procurement
Transition to e-Business
Early e-GP promoted the growth of e-Certification industry
- Strong full through effect in e-Commerce
Growth of e-Commerce in Korea
e-Certificates in Use1.1 m (2001) 8.7m (2003) 24.4m (2010)
- Internet banking, online stock trading and e-Shopping
2001 2006 2011
$119 bn
$999.6 bn
$413.6 bn
12
Impact of e-ProcurementImpact of e-Procurement
Increased Transparency
Real-time information disclosure
Objectivity in bid evaluation- Bid evaluation based on objective, validated data
Informed decision-making- Traceable prices and specifications
- Bidding results and contract details disclosed to the public on-line- Peer monitoring on fair results
- Reduced risks of biased decisions from information asymmetry
13
Impact of e-ProcurementImpact of e-Procurement
Transaction Cost Savings
KONEPS is saving transaction costs of USD 8 billion annually- Private Sector : USD 6.6 billion- Public Sector : USD 1.4 billion
Increased efficiency- Receiving bids, validating related docs. and selecting the winning bid
Before over 30 hrsless than 2 hrsAfter
- Reduction of 7.8 million pages of paper documents per year
$ 6.6 bn
Public Sector Private Sector
Transaction Cost Savings
$ 1.4 bn
14
Impact of e-ProcurementImpact of e-Procurement
International Recognitions
UN Public Service Award (2003), Global IT Excellence Award (2006), e-Asia Award (2007)
Adoption of KONEPS-based e-Procurement systems in developing countries
Mongolian e-GP System
(2012)
Mongolia
Tunisian e-GP System (began in 2012)
Tunisia
e-GP Feasibility Study (2012)
Algeria
e-GP Feasibility Study (2009)
15
Uzbekistan
e-GP Feasibility Study (2012)
Jordan
Future DirectionsFuture Directions
17
Exchange of expertise and best practices with the World
Exchange of expertise and best practices with the World
Continuing development of best practice models
Continuing development of best practice models
Total solution and platform for public procurement Total solution and platform for public procurement