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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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