Saqib Iqbal Chief Operating Officer
The Mandate “Ease the lives of people and businesses interacting with the Government and contribute in establishing Dubai as a leading economic hub. ” H. H. Sheikh Mohammed Bin Rashid Al Maktoum, April 2000
E-Government Development VISIONING Ease the lives of people and businesses interacting with the Government and. contribute in establishing Dubai as a leading business hub SERVICE OBJECTIVES Customer Focused Innovative Effective in delivery Integration among constituents Self financing
E-Government Development SERVICE OBJECTIVES Customer Focused Innovative Effective in delivery Integration among constituents Self financing SERVICE PILOTS Customer Centric Services NEW BUSINESS FORMATION Satisfying Market Gaps
E-Government Development SERVICE PILOTS NEW BUSINESS FORMATION Customer Centric Services Satisfying Market Gaps Business Licensees Fee Collection Certificates of Origin Driving Licenses Vehicle Registration Building Permits NOCs for Construction Bill Presentation and Payment Visas & Health Cards Professional Permits Legal Case Tracking Mapping Services Advisory Services Tejari
e. Procurement Identified as High Priority Complete transparency of Government opportunities, procedures & processes – delivering fairness and consistency. Improved efficiency & effectiveness of Government agencies. Removal of beaurocracy and red tape. Elimination of procurement-related fraud and corruption. Reduced costs of Government procurement. Streamlined interaction between Government & business. Improved international competitiveness of private sector companies. Leading the corporate sector in the deployment of online services. Demonstrating a commitment to electronic commerce & the development of a knowledge economy.
…and most importantly Ability provide high visibility quick wins for the e. Government Program. Ability to leverage natural market momentum.
B 2 B – Where the Action Is Relative e-Commerce Value in the Middle East, 2005 Ernst & Young, 2002
Why a Marketplace? All procurement is going online and will eventually be done electronically. The majority of procurement will be done through Marketplaces deliver tremendous benefits to Government, business and ultimately the community through reduced costs & increased efficiencies.
Tejari History Launched on June 20, 2000 The word Tejari means “Trade” or “Commerce” in a number of the regional languages, such as Arabic, Urdu, Hindi, & Farsi The business model reflects a trading community For regional public & private sector organizations to buy & sell products & services online Open & Horizontal (B 2 B & G 2 B) electronic Marketplace
The Tejari Vision “To enable the region’s government and private sectors to realize the dramatic cost savings, greater efficiencies and extended market reach which is facilitated by online procurement through Tejari. ”
Tejari e. Marketplace Tejari is a Horizontal e. Marketplace
Typical Transaction Flows
The Impact of Tejari
Dubai Government Involvement Tejari was required to prove its value to Government agencies Dubai Government joined Tejari in May 2001 Dubai Government consists of 24 Government Departments (Municipality, Electricity & Water Authority, Economic Development, Land, Real State, Immigration, Health & Medical Services, Dubai Police … etc. ) After 2 years the Dubai Government documented dramatic streamlining of procurement processes, reduction of buying cycles, increased transparency, significant cost savings and elimination of paper work.
Reduced Costs Dubai Water & Electricity Authority Saved over 48% in stationary costs. Dubai Civil Defense Saved over AED 1 Million on fire fighting equipment. Emirates Airlines Saved over AED 2. 5 Million saving on inflight menus & AED 2 Million on mineral water. Dubai Municipality Saved over AED 120, 000 on desktop computers. Dubai Police Saved over 14% on uniforms, shoes, helmets and other equipment. Eritrean Government Saved over 32% on 2500 pcs, monitors & peripherals Dubai Government Saves over 14% on average across all agencies
Reduced Procurement Cycle Times Dubai Government Workshop From 3 weeks to 10 days for automotive spare parts Dubai Ports Customs & Free Zone Corporation From 3 weeks to 10 days for cabling and tires Emirates Airlines From 3 weeks to 24 hours for corporate printing. Dubai Electricity & Water Supply From 20 days to 5 days for electrical items Dubai Municipality From 2 weeks to 7 days for chemicals & insecticides Nakheel From 6 months to 4 weeks for specialized light fittings Dubai Health & Medical Services From 5 days to 2 minutes to prepare summary of quotations
Extended Market Reach Small IT products supplier who had never supplied to Government… Awarded over USD$2 M in Government contracts within 60 days of participating in Tejari auctions. Large private group company in the manufacturing industry… Expanded supplier base from one to six suppliers for specialized pallets, overcoming non-competitive pricing and poor responsiveness. Large IT company focused on only large corporate contracts… Extended market reach into small-medium opportunities by deploying low-cost resources to bid on Tejari auctions. Leading transport company with ad hoc printing requirements… Reduced costs by 50% by awarding business to a non-traditional printing company with which they had no prior relationship. World Food Program who’d been unable to source 1. 5 M polypropylene bags Accessed 7 quality suppliers and awarded the business in 18 hours, meeting a critical deadline for the provision of humanitarian aid.
Typical Cost Savings Approach Value Proposition Method Process & Admin 5% Supply Chain Cost 10% - 15% Transactional Processing 5 -10% savings Automation Buyer Auctions Purchase Cost 80% - 85% RFQs, Spot Purchase Hyper-Competition New Trading Partners 5 -30% savings Supplier Acquisition Strategic Sourcing
Integration: Point to Point Suppliers Buyer-hosted catalogs Point to Point Integrations 100’s of integration projects
“Enterprises that rely on point-to-point solutions will fail to integrate systems & processes effectively with more than 25% of their business partners” (80% probability, Gartner)
“Enterprises that rely on point-to-point solutions will fail” Suppliers
Integration: Tejari e. Marketplace Suppliers Buyer Tejarihosted catalogs Single Point Integration 1 integration project
Many Buyers to Many Suppliers Buyer Tejari-hosted catalogs Buyer Single Point Integration for Buyers Single Point Integration for Suppliers
Current Status
The Middle East’s e. Marketplace Operational since June 2000 Value of business thru Tejari exceeds $US 1 Billion Paid members on Tejari - 3, 000+ Online tenders conducted - 26, 000+ Online purchase orders - 47, 000+ Catalog items managed on Tejari 50, 000+
Tejari covers all major Commodities More than 1000 major suppliers representing over 100 commodity groups and over 50, 000 cataloged items
Members Trading Partner growth - Quarterly Quarters
Transactions Transaction Growth - Quarterly Quarters
Number of Government Tenders Awarded Expected Number of Government Purchase Orders Created Expected Dubai Government Transactions
Tejari’s current membership includes regional and international business leaders such as:
The Market is set for High Growth
Expanding international trading relationships Connecting to all regional markets Accessing a diverse base of regional buyers & suppliers Increasing competition & transparency Bahrain Egypt Saudi Arabia India Iran Iraq Jordan Kuwait Africa Syria Turkey UAE Qatar Lebanon
Saqib. iqbal@tejari. com
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