Post on 07-Feb-2016
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João N. Veiga MaltaJoão N. Veiga MaltaSr. Procurement SpecialistSr. Procurement Specialistjveigamalta@worldbank.orgjveigamalta@worldbank.org
João N. Veiga MaltaJoão N. Veiga MaltaSr. Procurement SpecialistSr. Procurement Specialistjveigamalta@worldbank.orgjveigamalta@worldbank.org
e-GPe-GPFrom publication to transaction From publication to transaction
and beyond - LACand beyond - LAC
e-GPe-GPFrom publication to transaction From publication to transaction
and beyond - LACand beyond - LAC
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Role of governments, Role of governments, WB, ADB, IDB…WB, ADB, IDB…
• developmentdevelopment• transparencytransparency• operational efficiencyoperational efficiency
CommunityCommunity
• technology literacytechnology literacy• opportunityopportunity• just-in-time trainingjust-in-time training• lifelong learninglifelong learning
EconomyEconomy• capacity buildingcapacity building• market accessmarket access• connectivityconnectivity• skills developmentskills development
Organisation Organisation • new servicesnew services• new deliverynew delivery• new resourcesnew resources• new efficiencynew efficiency
Why e-Procurement ?Why e-Procurement ?Why e-Procurement ?Why e-Procurement ?
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Why e-GPWhy e-GPWhy e-GPWhy e-GP
Capacity-building in e-GP targets three key donor objectives for one third of government expenditures
Capacity-building in e-GP targets three key donor objectives for one third of government expenditures
GOVERNANCETransparencyAccountability
IntegrityPublic Confidence
GOVERNANCETransparencyAccountability
IntegrityPublic Confidence
EFFECTIVENESSEfficiency
Informed ManagementValue-for-money
Quality Outcomes
EFFECTIVENESSEfficiency
Informed ManagementValue-for-money
Quality Outcomes
ECONOMIC DEVELOPMENTBusiness development
CompetitivenessTechnological Enablement
Market Access
ECONOMIC DEVELOPMENTBusiness development
CompetitivenessTechnological Enablement
Market Access
e-GP OBJECTIVES
e-GP OBJECTIVES
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Current situation in LACCurrent situation in LACCurrent situation in LACCurrent situation in LAC
All countries in Latin America and several in the All countries in Latin America and several in the Caribbean have e-GP portalsCaribbean have e-GP portals
Systems range from publication of procurement Systems range from publication of procurement information to full interactioninformation to full interaction
All countries using MDB e-GP roadmap and All countries using MDB e-GP roadmap and guidelines as blueprint for their systemsguidelines as blueprint for their systems
Procurement becoming more strategic Procurement becoming more strategic
All countries in Latin America and several in the All countries in Latin America and several in the Caribbean have e-GP portalsCaribbean have e-GP portals
Systems range from publication of procurement Systems range from publication of procurement information to full interactioninformation to full interaction
All countries using MDB e-GP roadmap and All countries using MDB e-GP roadmap and guidelines as blueprint for their systemsguidelines as blueprint for their systems
Procurement becoming more strategic Procurement becoming more strategic
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back office function
sourcing considerations
largely goods
suppliers
simple process
low value, low risk
central to strategic management
strategic business decisions
complete service solutions
strategic partners
complex contracts & relationships
high value, high risk
Changing Nature of Government BuyingChanging Nature of Government Buying
Government procurement is being driven by budget and performance expectations to become more complex and strategic
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Value ChainValue Chain
Re-Focus of Procurement Systems and Re-Focus of Procurement Systems and CapabilitiesCapabilities
Re-Focus of Procurement Systems and Re-Focus of Procurement Systems and CapabilitiesCapabilities
Potential GainPotential Gain
Simple Procurement
Basic Expertise
Codified Process
Compliance Management
Transactions Technology
Complexity & Risk
Complexity & Risk
Complex Procurement
High Level Expertise
Risk Process
Performance Management
Knowledge TechnologyTo extract maximum benefit from procurement governments need to move up the value chain and e-GP is an important element of this
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Procurement HierarchyProcurement HierarchyProcurement HierarchyProcurement HierarchyC
om
pl e
x ity
an
d R
i sk
Co
mp
l exi
ty a
nd
Ri s
k
Potential GainPotential Gain
PURCHASED SERVICE OUTPUTS
CO-ORDINATED SERVICES
CONSTRUCTION WORKS
SINGLE SERVICES
SINGLE GOODS
Value ChainValue Chain
Most budget and efficiency gains in e-GP have focused only on simple procurement where substantial savings are available but there remains very substantial potential for efficiencies in more complex procurement. How much potential? Douglas North estimated that 45% of GDP is the cost of transactions. The potential benefits of driving these online technologies into the economy are therefore very large
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Procurement HierarchyProcurement HierarchyProcurement HierarchyProcurement Hierarchy
Value ChainValue ChainSINGLE GOODS
&SIMPLE SERVICES
To
tal
Co
st
Volume
Price paid
Transaction costs
Most budget and efficiency gains in e-GP have focused only on simple procurement where substantial savings are available but there remains very substantial potential for efficiencies in more complex procurement
Simple low value procurement
E-GP
E-GP
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Procurement and Market DynamicsProcurement and Market DynamicsProcurement and Market DynamicsProcurement and Market Dynamics
BuyersBuyers
SuppliersSuppliers
Alliance ContractsAlliance
Contracts
Spot Markets
+
Panel Contracts
Spot Markets
+
Panel Contracts
Reverse AuctionsReverse Auctions
AuctionsAuctionsAn e-GP strategy needs to understand market dynamics and manage all of these
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Current situation in LACCurrent situation in LACCurrent situation in LACCurrent situation in LAC
Several countries redeveloping systemsSeveral countries redeveloping systems
Procurement Network – cooperationProcurement Network – cooperation
WB and IDB fully harmonisedWB and IDB fully harmonised
Bank provides ongoing technical support to Bank provides ongoing technical support to countries countries
Several countries redeveloping systemsSeveral countries redeveloping systems
Procurement Network – cooperationProcurement Network – cooperation
WB and IDB fully harmonisedWB and IDB fully harmonised
Bank provides ongoing technical support to Bank provides ongoing technical support to countries countries
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Key IssuesKey IssuesKey IssuesKey Issues
Regional integrationRegional integration AuthenticationAuthentication
Digital Signatures vs Electronic SignaturesDigital Signatures vs Electronic Signatures Cross certificationCross certification
Product CodificationProduct Codification International standardInternational standard
Supplier registriesSupplier registries Free trade agreementsFree trade agreements
Regional integrationRegional integration AuthenticationAuthentication
Digital Signatures vs Electronic SignaturesDigital Signatures vs Electronic Signatures Cross certificationCross certification
Product CodificationProduct Codification International standardInternational standard
Supplier registriesSupplier registries Free trade agreementsFree trade agreements
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Standards and Government PolicyStandards and Government PolicyStandards and Government PolicyStandards and Government Policy
Executive Government
Policy Settings
Technical Standards
e-Standards require government policy to be articulated to target the facilitation of the technological activation of the economy as well as the efficient reform of government operations
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Key IssuesKey IssuesKey IssuesKey Issues
What drives change What drives change Law Vs SystemLaw Vs System
Second generation systemsSecond generation systems Operation modelsOperation models Government ownedGovernment owned OutsourcedOutsourced
What drives change What drives change Law Vs SystemLaw Vs System
Second generation systemsSecond generation systems Operation modelsOperation models Government ownedGovernment owned OutsourcedOutsourced
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Full Electronic Market CycleFull Electronic Market CycleFull Electronic Market CycleFull Electronic Market Cycle
Buyers
Suppliers
Supplier Search
CreateRFQ
Catalogues
AgencyContracts
CUC
RFQResponse
E-PO to Supplier
FMIS
E-Invoice
PO Receipt
Fax PO E-PO
E-Workflow
- Requisitions
- Approvals
- POs
- Receipting
- Reporting
e-GP requires integrated solutions if maximum benefits are to be gained by both buyers and suppliers
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Partial Electronic Market CyclePartial Electronic Market CyclePartial Electronic Market CyclePartial Electronic Market Cycle
Buyers
Suppliers
Supplier Search
CreateRFQ
Catalogues
AgencyContracts
CUC Fax PO E-PO
Proprietary FMISWorkflow
- Requisitions
- Approvals
- POs
- Receipting
-Reporting
Limited functionality is often preferred by staff who fear ‘disintermediation’ – another reason why an e-GP strategy is required
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Online Contract DevelopmentOnline Contract DevelopmentOnline Contract DevelopmentOnline Contract DevelopmentDesigned to allow users to define, plan, develop, track and
manage the contracting processDesigned to allow users to define, plan, develop, track and
manage the contracting process
Best Practice Guidelines & Checklists
Templates and Case Studies
Records Library
Tendering Information & Process Management
Office systems
E-Tender
e-Contract Development is about reform of administration
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How it was achievedHow it was achievedHow it was achievedHow it was achieved
LAC was test bed for Harmonised workLAC was test bed for Harmonised work
Utilised procurement networkUtilised procurement network
Supported regional working groupsSupported regional working groups
E-GP became Integral component of procurement E-GP became Integral component of procurement reform reform
LAC was test bed for Harmonised workLAC was test bed for Harmonised work
Utilised procurement networkUtilised procurement network
Supported regional working groupsSupported regional working groups
E-GP became Integral component of procurement E-GP became Integral component of procurement reform reform
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How it was achievedHow it was achievedHow it was achievedHow it was achieved
Regional competitionRegional competition Civil societyCivil society Bank use of systemBank use of system
Ranging from publication to transactionRanging from publication to transaction
Regional competitionRegional competition Civil societyCivil society Bank use of systemBank use of system
Ranging from publication to transactionRanging from publication to transaction
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Lessons Learned - PitfallsLessons Learned - Pitfalls Lessons Learned - PitfallsLessons Learned - Pitfalls
Technical direction drives e-GPTechnical direction drives e-GP
If it is so easy why is the success rate so low – If it is so easy why is the success rate so low – realistic expectationsrealistic expectations
No business model – lack of sustainability No business model – lack of sustainability “Someone has to pay”“Someone has to pay”
What is the reason for implementing e-GPWhat is the reason for implementing e-GP
AuthenticationAuthentication
Technical direction drives e-GPTechnical direction drives e-GP
If it is so easy why is the success rate so low – If it is so easy why is the success rate so low – realistic expectationsrealistic expectations
No business model – lack of sustainability No business model – lack of sustainability “Someone has to pay”“Someone has to pay”
What is the reason for implementing e-GPWhat is the reason for implementing e-GP
AuthenticationAuthentication
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Lessons Learned - PitfallsLessons Learned - PitfallsLessons Learned - PitfallsLessons Learned - Pitfalls
No reform = making the inefficient more efficientNo reform = making the inefficient more efficient
No plan = Lack of strategic directionNo plan = Lack of strategic direction
Failing to learn from the mistakes of othersFailing to learn from the mistakes of others
Transaction costsTransaction costs
Anyone who purchased online at Amazon is a Anyone who purchased online at Amazon is a e-procurement expert e-procurement expert
No reform = making the inefficient more efficientNo reform = making the inefficient more efficient
No plan = Lack of strategic directionNo plan = Lack of strategic direction
Failing to learn from the mistakes of othersFailing to learn from the mistakes of others
Transaction costsTransaction costs
Anyone who purchased online at Amazon is a Anyone who purchased online at Amazon is a e-procurement expert e-procurement expert
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E-GPSTRATEGY
GOVERNMENT & INSTITUTIONAL
LEADERSHIP
MANAGEMENT, LEGISLATION,
REGULATION & POLICY
PRIVATE SECTOR ACTIVATION
INFRASTRUCTURE & WEB
SERVICES
FUNCTIONALITY & STANDARDS
Business Activation• Contracted suppliers
Sell value proposition Letters, online follow-up Meetings and training
• Non contracted suppliers Sell value proposition ‘Procure-link’ connectivity Industry association
• Service industry development Catalogue development Business systems integration
• ETAs• Business selection and listing policies• Remote business strategy• Metropolitan strategy• Charge policies• etc
Management, Regulatory & Policy• Inter-jurisdictional agreements & interoperability• E-law capability
Low value online High value off line
• Legislative review & enactment• E-business process policy• ISMS – QA• Management e-gp• Guidelines & templates• E-gp policies• Reporting• etc
Infrastructure• Connectivity enablement• Kiosk services• Service industry development
Catalogue development Business systems integration
• ETAs• Peering facilitation• Procure-link• Bandwidth design• Responsiveness / performance• etc
LEADERSHIP• Cabinet signoff• A vision and objectives for e-GP.• Lead agency role definition and
coordination. • Procurement management
reform and implementation.• Stakeholder activation• Resource support (influence,
funding & expertise) • Consultation• Multi-level information strategy• Education & training• E-tender implementation• Change management & re-
engineering• Design collaboration• Public policy & governance
integration• Business proposition• etc
An e-GP strategy is an efficient & affordable vehicle to drive governance and economic reforms in developing countries – the leapfrog effect
Functionality & Standards• Ownership & management• Providers• E-tendering• E-contracting• E-procurement• Banking integration – suppliers• Banking integration – buyers• Document managment• Purchase card integration• Data warehouse mapping• Supplier-supplier connectivity• Standards policy• Open standards• Standards orgs• stc
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Lessons LearnedLessons LearnedLessons LearnedLessons Learned
A Strategic Plan doesnA Strategic Plan doesn’’t guarantee success but t guarantee success but the lack of one guarantees failure the lack of one guarantees failure
A Strategic Plan doesnA Strategic Plan doesn’’t guarantee success but t guarantee success but the lack of one guarantees failure the lack of one guarantees failure
João N. Veiga MaltaJoão N. Veiga MaltaSr. Procurement SpecialistSr. Procurement Specialistjveigamalta@worldbank.orgjveigamalta@worldbank.org
João N. Veiga MaltaJoão N. Veiga MaltaSr. Procurement SpecialistSr. Procurement Specialistjveigamalta@worldbank.orgjveigamalta@worldbank.org
e-GPe-GPFrom publication to transaction From publication to transaction
and beyond - LACand beyond - LAC
e-GPe-GPFrom publication to transaction From publication to transaction
and beyond - LACand beyond - LACThank YouThank YouThank YouThank You