EP Com Business Procurement

8/13/2019 EP Com Business Procurement

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e-procurementPresentation by

An overview of the process and Solution


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Presentation tour

E-CommerceE-Business , Evolution of Internet Business ModelsE-Procurement : Concepts and Scope

Electronic TenderingReverse AuctionLife Cycle of a tender & Security Issues

DefinitionBenefits


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E-Commerce Markets and Applications

Electronic Auctions

E-Banking

E-Searching

E-Marketing

E-Health Care

Education

Ticketing

E-News Papers

E-Shopping

Movies

Games

Internet


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What is E-Commerce

E-Commercecan be defined

as business activities conductedusing

electronic data transmissionvia

the Internet and WWW.


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Why E-Commerce Age of Competition

Business Strategy to cut down costs, whileimproving quality and increasing speed of deliveryof goods / services

Globalization of Economy Ability to sell goods and services all over the world

Proximity to Consumers, collection of Consumer dataSolution for Office Automation and Quick BusinessTransactionsMore and More people having access to Internet

Infrastructure, are turning to Internet as a one stopPlatform for Virtual TradingCapability to do MORE . Key business strategy to sell more at reducesexpenses


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Classification of E-Commerce

B2B Business to BusinessB2C Business to ConsumerC2B Consumer to BusinessC2C Consumer to Consumer


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C2C Consumer to Consumerorkut, shadi.com,click jobs.com etc.

C2B Consumer to BusinessIntermediatory .. shopping malls, online -tickets

B2C Business to Consumer

Buyer Centric ..Maruti, Hyundai Motors Ltd, Dell

B2B Business to BusinessSupplier Centric .. SAIL , NTPC , BHEL



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B2B Business to Business

Facilitates Inter-Organization interactions and

transactions

Requires 2 or more business entities interactingdirectly or through intermediatories

Supplier Centric : SAILBuyer Centric: Maruti, Hyundai Motors Ltd, DellIntermediatory: IndiaMart


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B2C Business to ConsumerOffers Consumers the Capability to Browse,

Select and Buy Merchandise

ONLINEfrom a variety of sellers and at better prices

Amazon.com and Fabmart.comare

E-Commerce Business portals


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C2B Consumer to BusinessForm of Electronic Commerce where a consumer has

a set of requirement specifications and specificprice for a commodity, service or item.

It is a responsibility of the Business Entity to matchrequirements to the best possible extent

Reduces Bargain time, increases flexibility andcreates ease at point of sale for both merchantand the consumer

Viz, .. Dell computers, ..


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C2C Consumer to ConsumerIs a activity that provides opportunity for trading of

products and / or services amongst consumerswho are connected to the internet

Classified Advertisements and auction of personalpossessions form the basis for the category

Viz,orkut, shadi.com, face book, linkedIN


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Benefits of E-CommerceReduced Manual ProcessingReduced OverheadsExpanded Markets

Available 24 hoursWide Geographical Reach

Faster ProcessingFaster inter Organization CommunicationQuick Placement of Orders

Reduces Cost of Physical StorefrontReduced Over-HeadsShowroom CostsExpensive Capital InvestmentsReduced Manpower CostsInexpensive Location Options


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Then, What is E-Business


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E-Business

E-Business is not just about is asuper-set of e_Commerce

E-Commerce transactions,it is about redefining business models, with the

aid of technology, to maximize customer Value

Continuous Optimization of a firms businessthrough digital technology


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SuppliersData

Reporting& Analysis

DataWarehousing

DataMining

Tech.-EnabledSelling

CustomerService

& Support

E-BillPresentn.

& Pmt.

ElectronicPayment

E-Procure

ment

FinancialEDI

SCM

FinancialModules

Employee Applications

Customers

E-Business Capabilities


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E-Business Mathematical Equation

WhereEC=E-CommerceBI=Business Intelligence

CRM=Customer Relationship ManagementSCM=Supply Chain ManagementERP=Enterprise Resource PLanning

EB = EC + BI + CM+ SCM + ERP


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The Building Blocks

High Availability

Merchant Account

Web SiteOr Hosting Account

TransactionSecurity

Search EngineOptimization

PaymentGatewayShopping Cart


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E-Procurement: What is it


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Strategic Use of Internet Technology


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Evolution of Business Applications

VisibilityAndComplex ity

Transac-tional

MRPMRP-II

ERP

SCM/APS

PortalsXgesE-Market-Places

Enterprise

Global

40s- 70s 80s 90s 2000->


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What Is e-Procurement?

e-Procurementis basedon the use of

Internet Technology

Electronic Tendering is conducting the traditional tendering process

in an electronic form,using the internet.


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E-Procurement

The Process of Connecting Employees andSuppliers

Via the Internet

Making it possible to streamline and automate

purchasing Across Departments; Business Units / BusinessDivisions


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What Is e-Procurement?

According to experiences ,it is established that , using an e-Procurement

solution to automate the acquisition of the goods andservices required to run the enterprise can lead to

dramatic economic benefits, such as:

5 to 15 percent drop in product costs 30 to 40 percent decrease in process costs 40 to 50 percent reduction in time required to

complete a purchase requisition cycle.


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E-procurement : What & How

ElectronicCatalog

Requi-sition

Process

Work-flow

Auto-Sourcing

OnlineTracking

Extranet

Intranet

Business UsersSearchCatalog

DesktopRecei-ving

Mat-ching& Pm

CreateRequest

InternalApproval

SourceAndOrder

TrackRequest

Re-ceiveGoods

Audit&Pay

ExtranetUpdateCatalog

ConfirmAvail

ConfirmCredit

Ack.Order

ShipNotice

Gen.Invoice

PostPmt.Trn

Suppliers


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comesfrom

E-Procurement.value

Expenditure .Analysis

OfItems procured

Tools/Technology

PolicyChanges

ProcessImprovement

Org.

Restruct .

StrategicSourcing


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Definition : E-Procurement

E-Procurement is using the Internet to operatethe transactional aspects

Ofrequisitioning,

authorizing,ordering,receipting

andpayment processes

for the required services or products.


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E-Procurement Services

All related purchase processes is doneelectronically such aseTendering ( Submit Collect Evaluatetenders )eCataloguing ( Upload Search )eOrdering ( Orders- Invoices)eAuctioning ( eMarketplace- Negotiations )


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Why Use e-Procurement?Cost Reduction

Every rupee saved in procurement goes directly toprofit margin

Price ReductionOn-line sourcing eliminates the middle mess, allowingsuppliers to bid more competitively

Time Reduction Average purchase and fulfillment cycle times arereduced

Pain ReductionBy leveraging Internet technology, organizations canreduce e-Business implementation costs, time andstandardization


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Approach to E-Procurement

Application Service Provider Model Service provider does the day to dayoperations on a

Per tender basisContract for a No of tenders in a fixed period

Volume of transaction basis

Buy Out Model Buyer hosts, runs and operates the system

Pilot project / Test Runs

Combining ETS-Dynamic Pricing (Reverse auction) solution.


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Key Requirements of the Solution

ConfidentialityRole and/or time based access to data held within the system

Authentication & Non Repudiation The system should be capable of identifying and authenticating user

entities to negate activity denials.Integrity

Ability to maintain the state of data flowing through the system fromsource to destination, and record exceptions.

SecurityShould be able to restrict unauthorised access to data and functions heldwithin the system during all stages of the tender lifecycle .


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Advantages to Buyer

Track annual purchase by Product,Division, Branch, etc.Single contractor/bidder database acrossOfficesSell document online - save on productioncost and courier cost.Save time, energy, efforts and money - E-procurement


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Benefits to Sellers

Never Miss a Tender - Anywhere/Anytime AccessNo need to subscribe dozens of paper All they need is to log on yourwebsite.com

Easy Search - Saves Time and Money

One time registration - for all departmentsComplete Information - Tender Notice, Project Details,DocumentsOnline Support/Assistance

Prompt handling of Clarifications

Past Tender ResultsE-procurement will promote IT among PSUs


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E-Procurement Benefits (#1/3)Greater simplification and transparency of proceduresReduced duplication of procurement functions andoffices.Greater transparency and accountability of decisionmaking

Benefits of scale due to consolidated purchasingUnified and user-friendly procurement systemEfficient, time and cost saving .Information that is readily available by all parties

involved, ensures any person making a decision, isalso accountable for any action taken.


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E-Procurement Benefits (#2/3)

Detailed specification has helped reducepurchase disputes. Analyze data more accurately.Consolidate all our common purchasetowards a centralized contract approach.

Accumulative orders strengthen bargainingpower.

Great business opportunities for suppliers.Strategic Entry Barrier for the Industry


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E-Procurement Benefits (#3/3)Strategic Benefits

Faster trading cycle Ability to adopt new business processessuch as Just-in-Time manufacturing techniques.

Ability to win new business or retain existing customersleading to improvements in business efficiency.

Operational benefits includeReduced costs - paper and postage bills cut - reduction inmoney tied up in stock - manual processing costs (e.g.associated with verification, keying and re-keying ofdocuments and the cost of manual filing systems).Improved cash flow

Opportunity benefits includeEnhanced image Competitive edgeImproved corporate trading relationships


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Tasks under taken during the pilot project stage

Defining Work Flow. Appointment of Service Provider.Defining Tendering Procedures.Defining Tender DocumentsDefining Auction Rules.Defining Tender Schedule.

Apply & Issue of Digital Certificates.Generating of Pass Words.Defining SERVER Timing & Clock.Hoisting of Tender Documents.Training to NTPC personnels

Training to Vendors. Allowing Downloads to Bidders.Submission of EMD (Off line)

Verifying of EMD Details.


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Tasks under taken during the pilot project stageSubmission of BIDs (On line)Opening of Bids (On Line) by TC, using Individual Digital

Certificates & Pass Words.Online Opening of Technical BidsOnline Evaluation of tech Bids.Online Technical Clarifications.

Arriving at Technical Loading (Off Line) .Incorporation of Loading LogicDefining BOD for Price BidsOnline Opening of Price Bids. Using Individual Digital Certificates& Pass Words.Defining Lowest Price & Rank OptionsDefining Alias Names for Reverse Auction.

Setting of REVERSE AUCTION Date.Conducting REVERSE AUCTION.Providing of item wise Break up by L1 BidderSigning of Contract Agreement.


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Generation of Enquiries Receiving of Bids Technical Technical clarifications Technical approval Commercial bidding

Closed Bidding Reverse Auction

Price bid opening (for closed bidding only) Finance approval with predefined workflow Letter of intent through the e-route Generation of PO PO consolidation Electronic send to vendors Acceptance of PO

e-Requisition, e-Tendering & e-Tracking togetherautomate the end to end procurement processes

Request Tender Receive Payment

AutomatedTransactionSteps

Indenting Clarifications Approvals Budget

tracking Request

tracking Reminders

e-Requisition

ProcurementProcess

e-Tendering e-Trackinge-ProcurementFunctionality

PR PO

Invoice

Materials in on the basis of PO Invoice QC Rejections Make payments based on PO, Invoice,

Goods Receipt Credit Authorization


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Registration Of Indent

Reciept of Indent

Proposal for Floating of Tender EnquirySELECTION OF VENDORS

Final TC Recommendation

Nomination Of TCfrom Indentor &

FinanceFloat Tender Enquiry

single or two part

Technical Evaluation by Indentor Querries from INDENTOR & Technical

Clarification to and from Bidder

COMMERCIAL Bid Opening

Vetting Of Draft PO/ LOA

Approval Of TC Recommendation

Preparation Of DraftPurchase Order/ LOA

Control / Registration Of Purchased Orders

EXISTING - TENDERING PROCESS

Selection of L1 Vendor Calling Of Vendor

TECHNICAL Bid Opening

Check for value/type of tender.

Finance Concurrencefor ST or LT > 15 lacs

Release of PO to Supplier


Reciept of Indent

Verification of Indent wrt Check

List

Float Tender Enquiry

Technical Evaluation by Indentor Querries from INDENTOR & Technical

Clarification to and from Bidder

Vetting Of Draft PO/ LOA

Preparation Of DraftPurchase Order/ LOA

Control / Registration Of Purchased Orders

SIMPLIFICATION IN REVERSE AUCTION

Reverse Auctionon the Internet for

discovering of L1 Vendor ( Only Techinically qualified

vendors to participate)

Techinal Bid Opening

Check for value/ type of

tender.


Seek Internal approvals within materialsSELECTION OF VENDORS

in case of LT

Indentor to SeekTechnical Clarification

from Bidder

Finance Concurrence

Indentor & Financeto nominate TC

member at the time of Administrative

approval

e-Tendering: end to end procurement processes flow

Processescovered

In

ElectronicTendering


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Reverse Auctionis

A process technique which allows prospectivebuyers to list any item(s) they wish to buy,and the sellers bid to provide the best price ,Suppliers Competing, can be from anywhere

in the worldjust need to have Internetaccess..

Reverse in natureBecause prospective sellersbid the price DOWN as they compete for thework and the Prices Spiral Down, the process

is More Consumer Oriented and is Mosteffective after Technical evaluation.


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TC meeting , note , proposal for technical approval, shortlisting of party for Price Bid Opening

On line - PRE-BIDTechnical Clarific ation

to & fromVendors

Final TC Recommendation

Approval for QR -

TC NominationIndentor & Finance

Release Tender throughe-procurement Portal

Technical Evaluation using onlineTechnical Bid Comparator

Approval Of TC Recommendation

Preparation of draft Purchase order / LOA andVetting of the same t

Control / Registration OfPurchase Order

Reverse Auction

Online Bid Submissions

ON-Line Technical Bid Opening

Check for Value /type of Tender

To release EMD for Unsuccessful bidders.Security Deposit from Successful bidders


in case OT

Clarifications by E-mail,messa ge chat boards

Approval for QR CommitteePreparation of QR

Nomination of QRCommittee and

Preparation of QR

Proposal for FloatingON_LINE Tender thro

e-procurement Portal

Auto opening of Price Bid & auto Generation of CS reportsOn-LINE Price bidding ( Dynamic) Using appropriate, rules defined

In tender do cument. REVERSE AUCTION.

On-line Queries fromIndentor, Technical

Clarification to & FromVendors by e-mails , chat

boards

OFF LINEEMD Submissions

TERoff-line


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T d i d t d t fl


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Generation of Indentat User's End

Internal Approvalsof the Indent

Check for value/ type of tender.


Seek Internal approvals within materialsSELECTION OF VENDORS

& Procurement Process

FinanceConcurrence

Indentor & Finance tonominate TC member at

the time of Administrativeapproval

e- Procurement - Simplication of Process

ON-LINEe-Procurement

Process

Pre-Event

Event

1. Provide information on Electronic Tendering.2. Freeze Specification-a. Techinical b. Quality. c. Commercial.3. Create Tender Document.4. Pre-Bid Clarifications- ON- Line.5. Obtaining Technical cum Process Compliance statements from Suppliers for Tech, Evaluation.6. Decide Online Bidding Strategy.

1. Conduct the Online Bidding Event2. Generate and Submit the post Event reports.

1.Contract Sign Off with Identified Supplier as per Tender Document.

Post - Event

e-procurementPre-requisites

Off Line ActivityCollection of EMD.

Collection of Tender Fees.

1. Set up Software for Electronic Tendering. 2. Train Suppliers for On-line Bidding Process. 3. Train NTPC Officials for On-line Process.

Award Approval

as per DOP

P i l o t - Pr o j e c t - O n l i n e A c t i v i t y

P i l o t - Pr o j e c t - O f f l i n e A c t i v i t y

P i l o t - P r o j e c t - O f f l i n e A c t i v i t y

e-Tendering: end to end procurement processes flow


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Action to be initiated. Approval for Reverse Auction Approval for Pilot Project thru Service Provider Clearance from CVC Clearance from CVO Appointment of Service Provider for pilot Deployment of Processes/Work Flow

Educating And training users Launching of Pilot Project Revisiting the learning of PILOT Project

Planning for Roll Out.


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Using the e-Tendering ?

the PURCHASE DEPARTMENT can

Raise Indents as per the requirement Approve indents online Create and publish NIT Sell Tenders

Receive Bids Evaluate Tenders Award Contract / PO


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Using the e-Tendering ?the SUPPLIERS can

Receive notification of the relevant tenders

Purchase tenders document Submit Bids Online Track the status of their bids


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Tender Notification

BUILDING BLOCKS OFE-PROCUREMENT

Offer

Purchase Order

Order acceptance

Progress Status

Payment Status

Tech-Comm Evaluation

Document Status


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Alerts

Clarifications

Encryption

16 digitkey

Step 2

Step 1 Step 3

Step 4Step 5

PurchaseRequisition

RaiseTender

PublishTender

BiddingEvaluationAndAwarding

AlertsClarifications

Encryption16 digit key

Status Counter

The e-Tendering workflow


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Tender Requisitioning

Step 1 Step 3

Step 2

Step 4Step 5



Status Counter

Tender Requisitioning (Role Requisitioner)Specifying the Item

Selection of CategoryItemIntended UseQuantity

Setting Date and Time

Item Approval DateItem Required Date

Upload Relevant documentsStatus Counter


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Tender Raising (Role Approver) Approve / Reject Requisition

Raise TenderProject DetailsContact Details

Timelines

Tender FormatPre-Bid Meeting Details

Upload Relevant documents Status Counter

Raising the Tender

Step 2

Step 1 Step 3

Step 4Step 5



Status Counter


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Publish Tender (Role Dept. Head) Approve / Reject Tender Raised Publish Tender

Choose persons to be notified on publishChoose persons to open the TenderChoose the suppliers whowill bid

Upload documents Status Counter

Tender Publishing

Step 3

Step 2

Step 1

Step 4Step 5


Encryption

16 digit keyStatus Counter


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Bidding Search for tenders invited Clarifications Bid

EMD

Technical Bid

Commercial Bid

Bidding for the Tendering

Step 4

Step 3

Step 2

Step 1

Step 5



Status Counter


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Evaluation and Set Rank Persons invited to Open tender can view bids 16 digit key at time of opening. View and Evaluate Bids Set Rank for each Supplier

Choose Winner

Bid Evaluation and Ranking

Step 5

Step 2

Step 1 Step 3

Step 4



Status Counter

Tasks required to be under taken


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Tasks required to be under taken

Defining Work Flow. Appointment of Service Provider.

Defining Tendering Procedures.Defining Tender DocumentsDefining Auction Rules.Defining Tender Schedule.

Apply & Issue of Digital Certificates.Generating of Pass Words.Defining SERVER Timing & Clock.Hoisting of Tender Documents.Training to NTPC personnelsTraining to Vendors.

Allowing Downloads to Bidders.Submission of EMD (Off line)

Verifying of EMD Details.

T k i d b d k


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Tasks required to be under takenSubmission of BIDs (On line)Opening of Bids (On Line) by TC, using Individual Digital

Certificates & Pass Words.Online Opening of Technical BidsOnline Evaluation of tech Bids.Online Technical Clarifications.

Arriving at Technical Loading (Off Line) .Incorporation of Loading LogicDefining BOD for Price BidsOnline Opening of Price Bids. Using Individual Digital Certificates& Pass Words.Defining Lowest Price & Rank OptionsDefining Alias Names for Reverse Auction.

Setting of REVERSE AUCTION Date.Conducting REVERSE AUCTION.Providing of item wise Break up by L1 BidderSigning of Contract Agreement.

Screen shot of activity based


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Seq

NoNTPC Stage Vendor Stage Start Date & Time Expiry Date & Time

1 Release Tender - 19-10-2004 10:00 19-10-2004 19:15

2 - Tender Purchase 19-10-2004 19:16 08-11-2004 11:00

3 - Tender Download 19-10-2004 19:16 08-11-2004 11:00

4 - Bid Preparation 19-10-2004 19:16 09-11-2004 12:00

5 Close For Technical AndCommercial Bid - 09-11-2004 12:10 09-11-2004 15:00

6 Close For Price Bid - 09-11-2004 12:10 09-11-2004 15:00

7 - Bid Submission 09-11-2004 15:10 10-11-2004 14:00

8 Technical Bid Opening - 10-11-2004 14:30 02-12-2004 11:30

9Technical BidClarification - 02-12-2004 11:31 02-12-2004 12:30

10 Price Bid Opening - 02-12-2004 14:00 03-12-2004 17:30

11 Reverse Auction - 06-12-2004 11:00 06-12-2004 12:00

12 - Item Rate Form 07-12-2004 10:41 08-12-2004 16:00

13 View Item Rate Form - 08-12-2004 16:01 08-12-2004 18:00

14 Tender Award - 09-12-2004 10:00 17-12-2004 17:00

Date and Server TimingElectronic Tender cum Reverse Auction :

PC & Peripherals

BACK


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Pilot Project: The sealed bid stage mirrored NTPCs current

tendering process carried out online,

Electronic tenderdocument was prepared

by NTPC Vendors were allowed

to download the tenders

Tender issue

Technical and price bids were submittedonline

HCL, Acer, HP andIBM submitted the

bids

Bid submission

Comparative Excelreports were generatedfor the technical bids

Technical clarificationswere obtained in an on-line conference

Technical bid opening

HCL, HP and IBMqualified for this stage

Price bids wereopened for thesevendors

Price bid opening

Time planned for the process 62 days

Digital encryptionand certification

were used to ensuredata security

Actual process took 109calendar days instead of the planned 62 days because of

the cautious approachadopted during the pilot

REVERSE AUCTION


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Auction as we new it till recent times

Was

the one of the methods of selling goods and services.

Subsequent to introduction of e-procurement

AUCTION are now classified as

FORWA RD A UCTION&

REVERSE A UCTION

FORWARD A uct io n for se l l ing of Goods

Reverse Auct io n is one of the methods of buying Goods and Services.

REVERSE AUCTION


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BID TREND


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RESULTS OF REVERSE AUCTION Total number of bids received: 129

No of auto extensions applied: 67

Time of the first bid: 11:05:17

Time of the last bid: 14:57:16

No of vendors qualified to participate in RA : 3

Opening Price:(Lowest price received from commercial bid opening stage) 27509000

R1 Price rcvd after the RA: 20669000

Savings (in Rs / in %): 6840000 / 25%

Pilot Online Electronic Tender cum Reverse Auction :


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SeqNo NTPC Stage Vendor Stage Start Date & Time Expiry Date & Time

1 Release Tender - 19-10-2004 10:00 19-10-2004 19:15

2 - Tender Purchase 19-10-2004 19:16 08-11-2004 11:00

3 - Tender Download 19-10-2004 19:16 08-11-2004 11:00

4 - Bid Preparation 19-10-2004 19:16 09-11-2004 12:00

5 Close For Technical AndCommercial Bid - 09-11-2004 12:10 09-11-2004 15:00

6 Close For Price Bid - 09-11-2004 12:10 09-11-2004 15:00

7 - Bid Submission 09-11-2004 15:10 10-11-2004 14:00

8 Technical Bid Opening - 10-11-2004 14:30 02-12-2004 11:30

9 Technical BidClarification - 02-12-2004 11:31 02-12-2004 12:30

10 Price Bid Opening - 02-12-2004 14:00 03-12-2004 17:30

11 Reverse Auction - 06-12-2004 11:00 06-12-2004 12:00

12 - Item Rate Form 07-12-2004 10:41 08-12-2004 16:00

13 View Item Rate Form - 08-12-2004 16:01 08-12-2004 18:00

14 Tender Award - 09-12-2004 10:00 17-12-2004 17:00

PC & PeripheralsTender Reference number: 01/CMM/CMPG/R-4092_23

No of bids 129 No of extensions 67 Time of the first bid 11:05:17 Time of the last bid 14:57:16 No of vendors qualified 3to participate in Reverse Auction Opening Price 27509000(lowest price through commercial bid opening )

R1 Price rcvd after the RA 20669000 Saving (in Rs / in %)

6840000/25%

BACK


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Key Requirements of the Solution

ConfidentialityRole and/or time based access to data held within the system

Authentication & Non Repudiation The system should be capable of identifying and authenticating user entities tonegate activity denials.

Integrity Ability to maintain the state of data flowing through the system from source todestination, and record exceptions.

SecurityShould be able to restrict unauthorised access to data and functions held within

the system during all stages of the tender lifecycle .


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Benefits to Buyer

Track annual purchase by Product, Division, Branch, etc.Single contractor/bidder database across OfficesBlack listed contractor database

No frauds

Sell document online - save on production cost andcourier cost.Save time, energy, efforts and money - E-procurement


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Benefits to Customers

Never Miss a Tender - Anywhere/Anytime AccessNo need to subscribe dozens of paper All they need is to log on yourwebsite.com

Easy Search - Saves Time and MoneyOne time registration - for all departmentsComplete Information - Tender Notice, Project Details,DocumentsOnline Support/Assistance

Prompt handling of Clarifications

Past Tender ResultsE-procurement will promote IT among PSUs


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LONG TERM STRATEGY - .Contd.

Vendor Training as a Continuous process.

Vendor readiness to be ascertained before roll-out Focussed approach for vendor training

Vendor capability and willingness to respond to E-Procurement System.

Digital Certificates to be applied in advance by the Vendors

Alternate methods for EMD Handlingintegration with e-Payment to be explored.

Integration with OLIMFAS

Infrastructure readiness at each location


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To ensure smooth roll out of e-procurement, full time implementationteams should be formed at corporate and regional levels

Team L eaderHead (C&M)

Functional M embers

C&M (4)Regional IT (1 )

Implementation Team

Site Teams

ImplementationChampions

ED (CC&M), ED (Regions)

Monitoring

Coordination Monitoring

Site 1

Team L eaderStation Head

Functi onal Team HoD - C&M

HoD - IT

Team L eaderGM - CM

Functional M embersCorporate Materials (4)

Corporate IT (1)Corporate Finance (1)

Site 2


F unctional Team HoD - C&M

HoD - IT

Site n


F unctional Team HoD - C&M

HoD - IT

Regional Teams (6)

Corporate Team (7)


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Life Cycle of a Tender

Step1:

Preparation &

Approval

Step2:Announcement Step4: Bidding Step5: Analysis

Step6:

Evaluation

& Awarding

SpecificationState

AnnouncementState

ClarificationState

ResponseState

Analysisstate

EvaluationState

Step3:

Clarifications

Electronic cum Manual process

Online /Electronic

process


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Life Cycle of a Tender in ERP/SAP

Step1:

CreateRequisition

ME 51

Step2:

Release ofRequisition

ME 54

Step4:

ReleaseRFQ

ME 45

Step5:MaintainRFQ

ME 47

Step6:

PriceAnalysis

ME 49

Step7:

CreatePO

ME 21

Step8:

ReleasePO

ME 28

Step2:

CreateRFQ

ME 54


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Integration of Tender for ERP

Document states in the life cycle of the tender

Step1:

T CodeStep2:

ME 51N

Step4:

ME 47

Step5:

ME49

Step6:

ME21N

SpecificationState

Purchase

RequisitionRFP/ST/OT/LT

Quotation

Maintenance

Price

ComparisonPO

Step3:

ME 41Step7:

Receipts

Electronic Tendering Process


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Step1:

CreateRequisition

ME 51

Step2:


ME 54

Step4:

ReleaseRFQ

ME 45

Step5:MaintainRFQ

ME 47

Step6:

PriceAnalysis

ME 49

Step7:

CreatePO

ME 21

Step8:

ReleasePO

ME 28

Step2:

CreateRFQ

ME 54

eTendering

CumReverse Auction


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Step1:

CreateRequisition

ME 51

Step2:


ME 54

Step4:

ReleaseRFQ

ME 45

Step5:MaintainRFQ

ME 47

Step6:

PriceAnalysis

ME 49

Step7:

CreatePO

ME 21

Step8:

ReleasePO

ME 28

Step2:

CreateRFQ

ME 54

eTendering

CumReverse Auction

Technology for pulling the data from ME-51 and pushing to ME-21to be detailed out.


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Scope of Procurement Services

SupplierValidation

TrainingSupport

DynamicTrade Engine

SupplierDiscovery

Benefits

Comprehensive offline/online process

Complete enablement services

Post auction validation/fulfillment support

FulfillmentServices

RFQDesign

OpportunityAnalysis

Key Concepts in E-Procurement


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Key Concepts in E-ProcurementInternetExtranetPortal

VPNSecurity and EncryptionFirewallsElectronic Payment Systems

VANEDIService ProvidersRosetta netWebs Services and XML

What is industry looking for?


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What is industry looking for?TrustNo over-promiseLower cost of doing businessInter-operability and standardisationSpeed of paymentIncrease in turnoverReal business development opportunitiesCheap maintenance

Be a stakeholderSimplicity


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Architectural Framework


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Architectural Framework

Legal and Public Policy FrameworkPublic Key, Identification and

Authentication Infrastructure

Business Service InfrastructureDirectories, Search Engines etc

Secure Payment ProtocolsOnline Payment Infrastructure

Security and Encryption Technology

Network Protocol StandardsNetwork Infrastructure (Internet )

I n f o r m a t

i o n

D i s t r i b u

t i o n a n d

M e s s a g

i n g

T e c h n o l o g

i e s

( H T T P , S M T P , I M A P e

t c )

N / w M u

l t i m e

d i a C o n

t e n

t p u

b l i s h i n g

t e c h n o

l o g

i e s

( H T M L , X M L

, J A V A

,

G r a p

h i c s ,

V i d e o

T o o

l s e

t c )

E-Commerce ApplicationsCatalog based retailing, Marketing and Advertising, Bankingand Investment, Auctions, Home Shopping, Procurement


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e-procurement @ NTPC

your

questions

please


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Security Aspect Security Challenges

Detecting whether document is Tampered or not

Identifying a person in the faceless world of Internet

Non Repudiation

Document Secrecy

Bidding should not be allowed after due date and time

Bids cannot be opened before due date and time

Bids can only be opened by authorized officers


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Security AspectDigital Certificate

Digital Signature

Secure Socket Layer (SSL)

Hash Algorithm / MD5 (Data Encryption)Digital Encryption

Role Base Access

Time Based Access

Time Stamping

Biometrics

Security Audit

Digital Certificates


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Digital Certificates

VendorRequest for Digital

Certificates By ProvidingDetails

Certifying Authority (CA)

TCS/ Safe Script/NIC etc..

Sub CA/RA

Authenticates and Notifies

Confidentiality

Integrity

Authentication

Non-repudiation


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Digital Certificate

Digital Certificate is yourInternet PassportDigital Certificate come with1 / 2 Years validityCan be procured easily, inless than 8 Hours

List of licensed CertifyingAgency (CA) TCS N Code (GNFC) Safescrypt MTNL NIC


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Digital Signature

apple1Sign

MIIFbQYJKoZIhvcNAQcCoIIFXjCCBVoCAQExCzAJBgUrDgMCGgUAMAsGCSqGSIb3DQEHAaCCBG4wggRqMIIDUqADAgECAgoRC14bAAAAAAAQMA0GCSqGSIb3DQEBBQUAMBUxEzARBgNVBAMTCkJyYWluYmVuY2gwHhcNMDUwMjA4MDgzNTAzWhcNMDYwMjA4MDg0NTAzWjCBmTELMAkGA1UEBhMCSU4xEDAOBgNVBAgTB0d1amFyYXQxEjAQBgNVBAcTCUFobWVkYWJhZDEMMAoGA1UEChMDRTEwMREwDwYDVQQLEwhTb2Z0d2FyZTEf

MB0GA1UEAxMWU29mdHdhcmUgQWRtaW5pc3RyYXRvcjEiMCAGCSqGSIb3DQEJARYTdGVzdEB0ZW5kZXJjaXR5LmNvbTCBnzANBgkqhkiG9w0BAQEFAAOBjQAwgYkCgYEA

Subject : Software Administrator Issuer : Brainbench Thumbprint : F17002737EEA8920F212E4095125524EA37B85CAValid From : 2/8/2005 2:05:03 PMValid To : 2/8/2006 2:15:03 PM

Verify

apple1


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Hash Algorithm / MD5Recommended in Information Technology ACT 2000

Hash Algorithm is irreversible i.e. from MD5 one cannot know the

original text

Detects even the slightest change in the document128-bit hash can have 3.4 x 10 38 possible values

340,282,366,920,938,463,463,374,607,431,768,211,456 possible

hashes


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Tamper Detection

MD5 Hash

Text Box Apple1

Calculate MD5 Hash

31BD0BB0406E2CAAA88CC37A95C9668A

Digital Encryption


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apple1Sign

MIIDjQYJKoZIhvcNAQcCoIIDfjCCA3oCAQExCzAJBgUrDgMCGgUAMBkGCSqGSIb3DQEHAaAMBAphAHAAcABsAGUAoIICPTCCAjkwggGmoAMCAQICEB6jnyB/EKmER8G0uTheLwQwCQYFKw4DAh0FADBQMRYwFAYDVQQDEw1BZG1pbmlzdHJhdG9yMQwwCgYDV HEwNFRlMxKDAmB NVBAsTH0VGU BGaWxlIEVuY3J5cHR b24 2V dGlmaWNh

Encrypt

MIILJQYJKoZIhvcNAQcDoIILFjCCCxICAQAxgf4wgfsCAQAwZDBQMRYwFAYDVQQDEw1BZG1pbmlzdHJhdG9yMQwwCgYDVQQHEwNFRlMxKDAmBgNVBAsTH0VGUyBGaWxlIEVuY3J5cHRpb24gQ2VydGlmaWNhdGUCEB6jnyB/EKmER8G0uTheLwQwDQYJKoZIhvcNAQEBBQAEgYCsiBMu6ImSpjUZj+dkVmhhuB6WCnaE2cVEESl3Q4XRlBMb3v/d

Decrypt

MIIDjQYJKoZIhvcNAQcCoIIDfjCCA3oCAQExCzAJBgUrDgMCGgUAMBkGCSqGSIb3DQEHAaAMBAphAHAAcABsAGUAoIICPTCCAjkwggGmoAMCAQICEB6jnyB/EKmER8G0uTheLwQwCQYFKw4DAh0FADBQMRYwFAYDVQQDEw1BZG1pbmlzdHJhdG9yMQwwCgYDV HEwNFRlMxKDAmB NVBAsTH0VGU BGaWxlIEVuY3J5cHR b24 2V dGlmaWNh

Verify

apple1


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B t B E h


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B-to-B Exchange

At its most basic, a B2B exchange (also called amarketplace or hub) is a website where manycompanies can buy from and sell to each otherusing a common technology platform.

Many exchanges also offer additional services,such as payment or logistics services that helpmembers complete a transaction.

Exchanges may also support communityactivities, like distributing industry news,sponsoring online discussions and providingresearch on customer demand or industryforecasts for components and raw materials.

E Marketplace


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E-Marketplace

An Online Trading HubWhere Buyers and sellersExchange Goods, ServicesAnd information

Streamlines commerce processes of buyer and seller

Provides Internet-based procurement System to Buyer Creates Shared network of Commerce services Enables Aggregated purchasing Enables new methods of sourcing and trade


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Example from utilities Sector


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Example from utilities Sector Rapidpartsmart.com : On-line Parts Search Engine for

Electric Utilities Visitors can search for engineered parts

within their own plants; or In affiliated plants; In vendor / supplier catalogs At other dotcom sites;

Parts that are preferred, alternate, or no longermanufactured

Subscribing partners can locate, buy or sell parts 24 hrs aday, 7 days a week

Utilizes plug-ins that integrate search functions withCMMS, ERP systems

Choices of On-line Exchanges


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Choices of On line Exchanges Independent Trading Exchanges (ITX)

For Commodity; non-strategic directand indirect

Consortium /Private Trading Exchanges For non-commodity, low volume

direct and indirect goods and services Consortium /Private Trading Exchanges

with traditional EDI For strategic, high-volume direct and

indirect purchases

Trends in e Procurement


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Trends in e-Procurement

Private Exchanges will increase (SAP ispushing technology, AMR)

Extranets will stay Consolidation in Consortium and

Independent exchanges Web-based Collaborative Logistics Web-based Collaboration in product /

component design

Savings through e-procurement


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Savings through e procurement- Improve Business Practices

reduce the number of suppliers, select preferredsuppliers and enforce on- contract buying withthem;

gather data about total spending by purchasecommodity type and supplier and use theinformation to negotiate price reductions;

improve process efficiency by eliminating multiplebuying centers, systems and staff;

improve turnaround time by clear procurementstructure, policies, roles & responsibilities; and

transit smoothly into the redesigned Procurement

function and implement according to plan.

Savings From e procurement


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Savings From e-procurement

Total indirect spending is typically 30% ofrevenue Approx 30% of indirect spending is suitable

for contract buying Contract compliance savings achievable (5%

of eligible indirect) Supplier consolidation savings achievable

(50% of compliance) Process Savings (10% of consolidation

savings) Total savings (approx 8% of eligible indirect /

2.5% total indirect spend)