Procurement Innovation Challenge Publication

Page 43

MOD E R N I Z I N G I N D I A’ S R A IL NETWO RK

TOP 15

Electronic procurement as a key step

Author: Pon Sivalingam, Deputy Chief Material Manager, Indian Railways Stores Service

‘ Increased flexibility and reduced crisis management

Organization: Indian Railways (Government) Theme: Using ICT to improve procurement systems Country: India

mean ongoing cost reductions across the whole organization ’ SU MMARY E-procurement is underpinning the Indian Government’s drive to

When India’s Government sought innovations to modernize its railway system, Indian Railways

develop the country’s rail network,

decided to switch from a paper-based procurement system to electronic tendering. It created

enabling modernizations such

automated systems to comply with industry benchmarks in data-driven approaches and

as electrification.

procurement ethics. These included electronic bidding, real-time performance monitoring, contract management tools and priority identification. It also developed a roll-out program to help users adapt from existing systems – vital in overcoming resistance to change. The new system has increased the effectiveness of the procurement process across India’s vast rail network, while cutting overall costs. Benefits include better lead-time and reorder calculation, identification of successful suppliers and transparency throughout the procurement process.

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