Ge BIZ New Procurement Method CHIA PUAY LONG

Ge. BIZ New Procurement Method CHIA PUAY LONG PROGRAM MANAGER, GEBIZ E-COMMERCE DIVISION DEFENCE SCIENCE & TECHNOLOGY AGENCY 29 Jul 2003

Agenda • • What is Ge. BIZ ? Functionalities and Features e-Procurement Methods Benefits of Ge. BIZ Implementation Approach Challenges Faced Future of Ge. BIZ

Ge. BIZ - Government Electronic Business • “One stop, non-stop” centre for Government business - For public service officers to interact with their trading partners for procurement activities – One-stop centre for suppliers to trade with the entire Government • Ge. BIZ is a Singapore Government wide ecommerce initiative

The Partnership • Joint collaboration between – Defence Science & Technology Agency (DSTA) – Ministry of Finance (MOF) – Infocomm Development Authority of Singapore (IDA)

What is Ge. BIZ? • Adopts some features of private sector portals e. g. convenient on-line shopping experience but adheres to public sector procurement disciplines (GPA compliant) which ensures: – Transparency – Fair and open competition – Value for money

Application & Users Ministries & Statutory Boards Financial Systems (Oracle, SAP, People. Soft) Ge. BIZ Enterprise Ge. BIZ Partner Ge. BIZ Professional E-Supplier Registration Trading Partners

Ge. BIZ Enterprise • • Intranet application for government agencies Goods Receipt Decentralised procurement activities Invoice Verification Invitation to Tender (ITT) Period Contract (includes e-Catalogues) Invitation to Quote (ITQ) Tender Publication Framework (RFQ) Catalogue Management Direct Purchase Ge. BIZ Admin Credit Note Estate Management System Check Payment Status Financial Systems Interface Construction Procurement Portal

Ge. BIZ Trading Partners • Internet application for trading partners, both local and overseas • Single stop for business opportunities Trading Partner Information Update View Tender Notices & ITQ Submit Quotations & Response to ITT Receive Purchase Order Submit E-Invoice View Payment Status On-line Supplier Registration View Period Contract Details

Access to Business Opportunities • Tender Notices, Schedules, Awards • Qualification Notices • Auction Notices • Invitation-To-Quote (ITQ)

Electronic Supplier Registration • One-stop registration for Ge. BIZ trading partners & EPPU (Expenditure Procurement & Policies Unit) • Integrated with government supplier debarment information • Supply Head Application Source database for suppliers trading with Govt Workflow for Supplier Head Applications/ Upgrade/ Renewal View Payment Status Upgrade/ Renew Existing Supply Heads Reporting On-line Payment Supplier Debarment

Ge. BIZ Functionality Features • System is centrally managed but procurement activities are decentralized • Public Sector users can access Ge. BIZ from the intranet, and approval of requisitions can be done via email or web pages • Support end-to-end transactions with trading partners for various modes of purchasing for ANY goods and services

Ge. BIZ Functionality Features • Supports end-to-end transaction processing with standard SAP, Oracle and Peoplesoft Financial systems • Support personalization & configuration by Agencies • Component based application architecture which is generic and re-usable across applications

Ge. BIZ- Procurement to Payment SUPPLIER Pu Tender Fil Issue Invitation to Quote Requisition Generate Purchase Request ITQ is h lu ps tic No r Te n ho de r. N ot pp ing ice ca s rt Submit ITQ Catalogues Up Submit quotation it P re ce i s talo ca date Ot os Prepare Quotation up p Fund Commitment Invoice Payment lie r Purchase Order e ic od e pric Delivery Purchase Order Receiving Financial Systems Process Purchase Order vo Go Tender Notices in Approval V & gue d Generate Purchase Order Te e nd n Se al ov s pr Ap oces Pr O t Plier i bm pp u Suo s t iew Su bm vi n Seek Approval Purchase Request Ge. BIZ Partner es bl g Ge. BIZ Enterprise AGENCY Invoice Prepare invoice for billing

Financial Systems Interface Financial Systems (SAP, Oracle, Peoplesoft) Ge. BIZ Purchase Order Fund Commitment Status Purchase Requisition Pre-encumbrance Status Supplier Master Financial Staging Area Goods Receipt Goods Return Invoice Interface Gateway Financial Systems Staging Area Chart of Account Material Master Systems Item Category Closed PO Payment Status

E-Procurement Methods in Ge. BIZ • Catalogue Buy - Established Period Contract • Electronic Catalog • Printed Catalog • Framework Agreement Buy – Request For Quotation (RFQ) • Self-Service Buy – Invitation To Quote (ITQ) • Assisted Buy – Complex ITQ or Invitation To Tender (ITT)

Differences between ITQ and RFQ Request For Quotation Invitation To Quote 1. Framework Agreement established between buyer and suppliers 1. No Pre-defined agreement established 2. 2. Closed among awarded suppliers 2. Open / Closed 3. 3. Quotation Approval Authority Limit is S$1 M 3. Quotation Approval Authority Limit is S$70 K

Typical Buying Scenario Start Items found in e-Catalog? Y Buy from E-catalog N Items found in printed catalog? N Items found in framework agreement? Y Buy from printed catalog Y Raise RFQ to buy from framework Issue PO N Simple Purchase? N Y Call ITQ (self-service buy) Assisted Buy

Typical Buying Scenario Ge. BIZ PO Goods Receipt E-Invoice Verification View Payment Status Financial System Close PO

New Procurement Method: Online Reverse Auction Since Jan 2001, Defence Science and Technology Agency has conducted 27 online reverse auctions and achieved a total of S$10 m (or 11%) savings from S$89 m worth of purchases As part of our e-Government programme, DSTA is now assisting other ministries with reverse auctions so that the benefits of procurement through reverse action can be enjoyed by all public sector agencies. The intention is to aggregate demand from different ministries and agencies so as to purchase in bulk and enjoy even lower prices for Government purchases.

Benefits of Ge. BIZ - Buyers • Increase transparency in Government Procurement – – Encourage competitive bidding Promote Fair and Open Competition – Best value for money • Global reach to suppliers • Better overview of procurement activities and purchasing patterns within the agency • Aggregation of requirements to establish cross-agency period contracts or framework agreements

Benefits of Ge. BIZ -Buyers • Better work efficiency and reduce procurement lead-time • Streamlined workflow processes eliminate duplicate data entry • Increase data accuracy & reliability • Online reference to past procurement records

Benefits of Ge. BIZ - Suppliers • Open access to business opportunities – transparency of opportunities and information on government procurement • Convenience – One-Stop Business Centre to trade with entire Government sector electronically – Online transactions & enquiry • Increased confidentiality – Responses are encrypted • Low start-up cost

Phased Implementation Approach Ge. BIZ Phase Jun 2000 – Catalog buy, Tender Publication, reach to all agencies, I Set up of Ge. BIZ Service Centre (GSC) Ge. BIZ Phase Nov 2001 – ITQ, TP Registration, Financial Interfaces to ORACLE & SAP IIA Ge. BIZ Phase Apr 2002 – RFQ Sep 2002 – ESR IIB Ge. BIZ Phase III Ge. BIZ Phase IV Ge. BIZ ITT, credit note, FI with People. Soft, deployment of FI, Direct PO Current – NFS FI, E-link with MINDEF, Billing, Mgmt Reporting, Demand Aggregation (Planned)

Mandatory Use of Ge. BIZ • FC 15/2000 – Issuance of electronic PO via Ge. BIZ fro Service. Wide period Contract from 1 December 2000 • FC 4/2002 – Online tender publication via Ge. BIZ starting from 1 Apr 2002 • FC 5/2002 – Use of Framework Agreement Module from Aug 2002 – Use all Ge. BIZ modules (except Ge. BIZ Professional by July 2003

Challenges Faced • Project Management Challenges – System is dynamic, new requirements surfaced almost every week • Phased Implementation Approach • “Think big, start small, scale fast” Manage the complexity • Technical Challenges – Scalability and robustness – Need to integrate many components Strong system and process integration capability is key

Challenges Faced • Design Challenge – One system for ALL agencies and ALL type of purchases – Diversity of requirement and practices across different agencies • effort on process rationalization, streamlining & standardization • flexibility in configuration to cater to specific scenarios – Standardization of Financial System Interface for different financial systems

Challenges Faced • Getting the Users On-Board – Buyer and Supplier Community Ramp-Up • Change management across all agencies – Convince buyers & suppliers of benefits – Revise internal procedures – Manage the transition – Confidence-building • • Involve end-users in requirement-gathering Solicit feedback regularly Provide adequate training Provide good post-training support – Operation Support for large buyer and supplier base • Proactive helpdesk support

Challenges Faced • Other Challenges – Security, Audit, Legal Issues • Terms & Conditions to govern the conduct of eprocurement electronically • Maintain traceability and accountability

Future of Ge. BIZ • Portal to enable all e-commerce transactions with Govt of Singapore (GOS) to be performed electronically • Integral part of e-government services • Aggregation of demand across GOS and achieve best value for money for all agencies including publicly funded agencies • Ge. BIZ as a means to explore new business model and processes enabled by technology • Primary means to promote e-commerce adoption amongst trading community in Singapore

e Thank You Welcome to visit us at : www. gebiz. gov. sg