e-Procurement Programme

Ms. Debbie Yau

(Business Transformation)

Office of the Government Chief Information Officer

24 July 2012

1

Background

• the Office of the Government

Chief Information Officer

(OGCIO)

• the Environmental Protection

Department (EPD)

• the Immigration Department

(IMMD)

A Pilot e-Procurement Programme was implemented in three departments

Covers departmental purchases of goods

and non-construction services not

exceeding $1.43 million

2

Objectives

Enhance efficiency and cost effectiveness of procurement

Improve quality and accessibility of procurement information

Encourage e-commerce in the supplier community

3

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

Procurement

Portal

(Internal)

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

4

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

Procurement

Portal

(Internal)

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

E-Catalogue

a web-based facility for pilot departments to

- identify potential suppliers for a required product or service and to prepare the shopping list

- identify GLD/SOA contract items

5

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

Procurement

Portal

(Internal)

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

6

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

Procurement

Portal

(Internal)

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

E-Sourcing

to support pilot departments to prepare and issue the invitation for quotations or proposals, and

for suppliers to submit their responses online

7

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

Procurement

Portal (Internal)

8

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

Procurement

Portal (Internal)

9

e-Procurement Initiatives

Preparation For Payment

Funding Commitment

Requisition

Ordering, Delivery, Acceptance

Internal Workflow System

Government

usersSuppliers

E-Sourcing

Preparation of supplier

invitation list

Receipt of quotations

Evaluation, Recommendation

E-Catalogue

Supplier products

GLD/SOA

contract items

Procurement

Portal

(External)

News, Events

Apply for Inclusion

Company Profile

Product Catalogue

Procurement

Documents

Procurement

Information,

News, Events

Procurement

Documents

Procurement

Portal (Internal)

10

Internal Procurement Workflow

(1)Create

Requisition

(4)Evaluate / Approve

Acceptance

(7)Certify

Receipt

(6)Issue

PurchaseOrder

(2)Issue

Invitation

(3)Receive

Quotations

“End-to-End” Electronic Procurement Workflow in e-Procurement System

Electronic

Submission

(Quotation)

Governmentusers

Purchase

Order

Suppliers

(5)Vet /ApproveAcceptance

11

Internal Procurement Workflow

(1)Create

Requisition

(4)Evaluate / Approve

Acceptance

(7)Certify

Receipt

(6)Issue

PurchaseOrder

(2)Issue

Invitation

(3)Receive

Quotations

“End-to-End” Electronic Procurement Workflow in e-Procurement System

Electronic

Submission

(Quotation)

Governmentusers

Purchase

Order

Suppliers

(5)Vet /ApproveAcceptance

Internal Workflow System

to streamline and automate the entire procurement process from initiating a requisition, confirming availability of funds, placing a purchase order, confirming delivery and acceptance, and to providing updated payment information to the Government’s financial system

12

Functions Highlights for Departmental Users

Access procurement information and

guidelines

Source potential suppliers from the

system

Invite suppliers to offer quotations

Receive offers electronically through

system

Issue purchase orders

Allow senior officers to review the process

Facilitate green procurement

Facilitate aggregate buying

Procurement Report

Governance and control 13

e-Services for Suppliers

* Supplier Inclusion

* Account Activation

* Profile Maintenance

* Account Management

* E-catalogue

* Receive online invitation

* E-submission

* Download purchase order

14

15

Pilot Programme Review

Rollout of e-Procurement to 3

pilot departments was fully completed in

February 2011

Pilot ProgrammeReview conducted

Opinions and suggestions from internal users and suppliers through surveys and focus

group

Tangible and intangible benefits confirmed

Feedback

from

suppliers

was very

positive

16

Benefits to the Government

• Reduce paper consumption

and storage space

• Expand supplier base

• Promote green

procurement –sharing procurement

information amongst B/Ds

through the procurement

portal

• Improve efficiency and

effectiveness

• Improve quality and

accessibility of

procurement information

• Reduce human errors

and enhance traceability

• Reduce transaction cost

17

• Communicate with the Government more effectively and

efficiently

• Expand business opportunities with the Government

• Reduce the turnaround time for business transaction with

the Government

• Encourage migration to the electronic means of doing

business –enhancing suppliers’ capability in e-commerce

Benefits to the Suppliers

18

Plan on Wider Rollout of e-Procurement

The pilot programme has established a business case for wider rollout of e-Procurement

E-government Steering Committee endorsed the recommendation

To make available e-Procurement for use by all B/Ds by end 2013

B/Ds to adopt the e-Procurement system for the purchase of IT products and services sourced through bulk purchase contracts (SOAs)

By early 2017, at least 30 B/Ds that are more ready to roll out the full function to join e-Procurement

Business case for wider rollout of

e-Procurement was established

E-government Steering Committee

endorsed the recommendations

19

Recommendations

To make available e-Procurement for

use by all B/Ds by end 2013

B/Ds to adopt the e-

Procurement system for the

purchase of

IT products and

services sourced

through bulk purchase

contracts (SOAs) By early 2017, at least 30

B/Ds join e-Procurement

20

Communication Plan

B/Ds on e-Procurement wider rollout plan and arrangement

IT products and services SOA contractors

Full function rollout - Participating B/Ds’ suppliers

The wider rollout

of e-Procurement

will be …..

in the form of a shared

service riding on the

Government cloud

platform

21

B/Ds on e-Procurement wider rollout plan and arrangement

IT products and services SOA contractors

Full function rollout - Participating B/Ds’ suppliers

• Bureaux and Departments

e-Procurement wider rollout plan and

arrangement

• SOA contractors

IT products and Services

• Suppliers of Participating B/DsFull function rollout

Communication Plan

22

The End

23

E-InvoicingE-invoice was not in original

scope of the pilot programme

To maximisethe benefits of e-Procurement

Suppliers

Streamline the printing and

mailing processes

GovernmentStreamline the handling and verification processes on

paper invoices

Develop e-Invoice as an add-on to the

e-Procurement system

- to shortening the invoice delivery time and further speeding up the procure-to-pay process

- trial use by pilot departments and suppliers

- wider rollout to B/Ds

24

The End

25