What is e-procurement? Why are governments interested?

Bridging connections with aerospace, transportation, utility and manufacturing companies can be a complex endeavor, especially for governments. 

Public authorities have continuously revised the way they procure goods in order to satisfy the needs of their constituents. Depending on how its economy is organized, a nation may need to provide water, electricity, transportation and health care for its citizens. 

Acquiring myriad resources requires strategic sourcing, a tactic a number of governments across the globe already employ. In light of the Digital Age, officials are beginning to migrate this approach to electronic formats. 

A computer-based procurement process 

Given the fact that enterprise resource planning - a staple solution for professionals concerned with supply chain management, material acquisition, financial forecasting and other business tasks - is delivered as software, it's only appropriate that sourcing follows suit.

Such a system enables organizations with various needs to sanction communications between departments and partners quite easily. In addition, it provides analysts with more information as to which suppliers deliver the best quality goods for the most affordable prices. Analytics, role assignments and other features are included in e-procurement deployments. 

Kenya's transition 

According to Capital FM, Kenyan President Uhuru Kenyatta recently implemented an e-procurement solution in order to promote transparency, accountability and appropriate use of public resources among officials. The leader maintained users will realize the following benefits of using the system: 

  • Supplier relationship management endeavors will be conducted more smoothly due to the ease of which information can be accessed
  • Financial authorities will have a better overview of all available funding, allowing them to deduce how capital can best be utilized
  • Youth, women and disabled citizens will receive preferential treatment when authorities carry out procurement endeavors
  • The nation will be better capable of holding suppliers accountable for their actions and scrutinizing their business practices. 

"Through the automation of public financial processes, the Integrated Financial Management Information System has provided an interlinked system of internal controls providing clear audit trails and identification of the originator of all transactions," said Kenyatta, as quoted by the source. 

Transportation woes 

One of the reasons why procurement is such a major concern in government is because many nations only have some many resources at their disposal. Developing nations usually deal with setbacks, as they're more vulnerable to economic fluctuations than their more established counterparts. An inaccurate view of the procurement process and vendor relationships could result in several instances that are detrimental to the welfare of citizens. 

FutureGov acknowledged how the city of Jakarta, Indonesia, is using e-procurement to improve its public transportation system. Incoming Governor Basuki Purnama Tjahaja acknowledged several vehicle malfunctions by TransJakarta, the city's public bus operator, have incited a need for more thorough assessments of city-vendor relationships. 

These instances aren't unheard of, either. Apparently, faults are a regular occurrence for TransJakarta, putting the 3.7 million people who use Jakarta's public transportation at risk. The metropolitan government has blamed sporadic automobile procurement and lackluster maintenance support for the problems. 

Solving the problem 

These are all signs of a poorly organized supplier relationship endeavor. It's apparent that Jakarta's officials lack the time and resources required to survey TransJakarta's operations and deduce where changes need to be made. That is why Jakarta City Transportation Council Chairman Edi Nursalam maintained comprehensive oversight of all sourcing activities is critical. 

"For this to happen we encourage policy agencies of Jakarta government to use the existing public sector e-procurement system to ensure transparency in the supply of goods and services," said Nursalam, as quoted by FutureGov. "The National Public Procurement Agency's e-catalogue system is the principal means to improve the current service failings of TransJakarta."

Bringing the RFP process and other elements of procurement into the electronic age is conducive to making the best possible use of all resources. 

Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours