e-Procurement System for On-line Tendering (eP)
Myanmar ICT Development Corp. Ltd. had implemented the e-Procurement System(eP) for on-line tendering of government procurement in 2003 (please check here.).
Introduction
In line with the objectives laid out by the e-National Task Force Myanmar in preparation for the implementation of the e-ASEAN Framework Agreement, eP was already approved by the e-NTF Myanmar for the development and implementation of a national electronic procurement system, namely, eProcurement.
eProcurement, eP, proposes the implementation of an innovative end-to-end electronic procurement solution for Myanmar. The underlying reasons for adopting electronic procurement are to manage the procurement processes more efficiently, cost-effectively, and at increased productivity level.
eP will allow the underlying procurement processes to function in a seamless, timely and accurate manner. And eP will also allows for greater transparency and accountability by providing a comprehensive transaction history, audit trails, and status information for management decision makers.
eP aims to develop a framework that will define the nation’s strategic positioning in the realm of electronic commerce, and the strategic goal ultimately is to participate in the creation of a conducive environment for e-commerce to flourish in the country.
eP was the very ambitious program for changing present traditional government procurement practices to on-line system. There were different methods of government procurements such as Tender system, Quotation System and Direct Purchase system. It was very time consuming for sourcing the suppliers, try to get the product catalogs and information, following the procedure for submitting, preparation for the selection, comparison and selection, arrangement for the payment, acknowledgement of the receiving etc. e-Procurement system could assist more efficient and effective way of procurement by establishing supplier data base for easy sourcing, supplier can easily getting information and submitting the tender and quotation on-line also for the catalog. The procurement departments can prepare and comparison for the selection in a very short time and finalization for payment and even payment can be made on-line. Eight ministries were now involved in e-Procurement Projects. This project was stopped in 2004.
eP Process Overview
e-Procurement (eP) is an online procurement system that enables Government Ministries around the country to procure products electronically from both local and international suppliers by using internet.
e-P is a multi-buyer multi-supplier electronic procurement domain, which allows Government Agencies to function as independent buying entities. It is Government to Business (G2B) model.
e-P will cover all kinds of procurement modes: Direct Purchase, Tender and Quotation.
Payment is an important component of eP, however due to the unavailability of an online electronic fund transfer; payment will be made through conventional means.
eP Functional Processes
1. Supplier Registration
All suppliers who want to supply goods and services to the government of Myanmar must register with eP. eP enables supplier to register online.
A Registration process starts with the supplier filing out a new registration form at the eP website. Once completed, supplier will have to submit paper based supporting documents to the government via post mail.
The supplier application is routed to a government officer for verification. Once verification is completed, the application is then routed to the Registration Committee for final approval.
If application is approved, the government officer will have to send a letter of approval to the successful supplier. At the same time, eP will send payment request to the supplier requesting the registration fees to be paid. Payment will be made offline.
Once the payment is made, the government officer will print the registration certificate using eP, and send it to the supplier.
Since the registration is valid for a specific period, when approaching the expiry date, eP will automatically send a notice to the supplier to renew the application. Supplier will not need to fill the entire application but only update whatever changes there are, and then proceed to submit the renewal application online. These processes are the same as for a new application.
2. eP Catalogue Based Procurement
eP will enable Suppliers to create their virtual marketplace by placing their products information in the electronic catalogue repository.
Government procurement officers will then be able to view and select products from the electronic catalogues to create an electronic requisition that will be submitted to an authorized officer for approval.
When the Requisitioner completes the requisition process, eP will then proceed to forward the requisition to the finance department and prompts the Finance Officer to make necessary budget sanctioning if there were insufficient budget.
Once the Finance officer acknowledges the budget is sufficient, eP will forward the purchase order to the designated approver for online approval.
Upon final approval, eP will convert the requisition into a purchase order and forwards the purchase order to the Supplier for order fulfillment.
3. eP Non-Catalogue Based Procurement
As an alternative to the catalogue buying, government can also procure using the following two Non-Catalogue Base procurement methods such as: Tender and Quotation.
4. eP Order Fulfillment
eP shall route the approve purchase order directly and securely to the respective Supplier for fulfillment via the Internet. eP shall enable the Supplier to acknowledge acceptance of the purchase order online upon receiving the purchase order. Prior to actual delivery, the Supplier will raise and submit an electronic delivery order to the Government. The Supplier will then proceed with delivery of the physical goods to the location specified in the purchase order. As the purchase orders are fulfilled, Suppliers may send order acknowledgement, order status and shipment notifications to the Government Department(s) online.
Upon receiving and verifying the physical goods, eP shall enable an authorized Government Officer to acknowledge the receipt of goods and initiate the generation of goods received note (GRN). At this point, eP shall also enable the Government Officer to enter comments on the quality of goods or any other notes on the goods received from the Supplier. Subsequently eP shall proceed to facilitate the update of budget book to indicate liability for payment of the goods received.
When the GRN has been created, eP shall enable Supplier to create an electronic invoice as well as credit adjustment notes, if required.
eP shall enable the authorized Government Officer to perform matching of purchase order, goods received note and invoice. Upon matching, eP shall generate payment advice and then forwards the advice to a payment system to facilitate the generation of payment voucher and payment processing.
eP shall facilitate the payment process by enabling Government Departments to acknowledge receipt of suppliers, perform matching of relevant documents and initiating the generation of payment advices.