2.  Kamel Badawy
 Head of System Support – Procurement Directorate
 Qatar Foundation
 Email: kbadawy@qf.org.qa
 Mobile: 0097433938123
Exploring e-tendering Challenges
& Benefits: a business case

3.  Introduction
 What is e-Procurement?
 e-procurement evolution
 e-procurement components
 What is e-tendering?
 Why e-tendering
 e-tendering challenges
 Business case
 Recommendations
 Surveys & Statistics
 Questions

4. e-Procurement in a simple
term is used to describe the
automation of an
organization’s procurement
process using web-based
tools or applications
What is e-procurement? 2. Supplier
Assessment
3. Supplier
Identification
4. Sourcing (e-
Tendering/e-
Auctions)
5. Contract
Management
6.
Procurement
7. Order
Fulfillment
8. Invoicing &
Payment
1. Spend
Analysis

5. Technology
Time
Traditional
Procurement
(paper
based)
Electronic
systems
supporting
traditional
procurement
(ERP, etc.)
Internet as
communication
channel
supporting
traditional
procurement
(email, etc.)
Web-based &
internet
platforms
supporting
traditional
procurement
(i-supplier,
online catalogs,
etc.)
Web-based &
internet
platforms
replacing
traditional
procurement
(e-tendering)
e-Procurement Evolution

6. Requester
Purchasing
Supplier
Supplier Supplier
Supplier
Requester
e-Procurement
System
Supplier
Supplier
SupplierSupplier
Purchasing
Traditional Procurement e-Procurement
Traditional Vs. e-Procurement

7. Why Procurement Automation is Important
Governance Focus
Sourcing
Electronic POs
Recurring Payments
Mitigate Risk
Dedicated Solution
Electronic POs
Direct Connect
E-tendering Tool
Invest in Systems
Provide Enablers
Catalogues
Electronic POs
P-Cards
Streamline
Rationalize &
Reduce
P-Cards
One Time Vendors
Minimize
Increased Benefits from Automation
Increasing
need for
Governance
& Control
Spend by
Category
High
Low
Low High
Frequency of Activity
-Sourcing/Contracts
-Transactions/Purchases
-Payments/Invoices

8. What is e-tendering?
 e-tendering is an online version of the tendering process through a web-based
application from supplier registration, tender publication, receiving and submitting
tender documents, tender evaluation, awarding to post contract activities online.
 In addition, e-tendering is offering additional features that protects the details of
the bidders and their bids and make it apparent if bids have been tampered with.
 By doing so, the process becomes more accountable and it has been proven
that e-tendering systems are the most effective tools for addressing corruption
and process subversion.
 It enables the buyer to operate a transparent process that can be audited and
evaluated. It also makes it easier and more cost-effective to operate the process.

9. e-Noticing
e-
Submission
e-Decision
+
e-Auction
e-Award
e-Contract
Manageme
nt
e-Invoicing/
Payment
e-
Evaluation
Pre-Award / e-Tendering Post-Award / e-Execution
e-Tendering Process

10. e-Tendering
Solution
1. Reverse
e-Auctions
2. Forward
e-Auctions
3. e-RFx(s)
4. Contract
Management
5. Spend
Analytics
6. Supplier
Performance
Management
7. Program
Management
8. Supplier
Intelligence
Tools
9.
Collaboration
Tools
10.
Supplier
Portals
e-Tendering Solutions Overview

11. Why e-Tendering?
Operational
BenefitsSimpler & fast
ordering
Reduce
paperwork
Easy online
comparison
Minimize
process errors
Better control &
compliance
Enhanced
inventory
management
Reduce cycle
time
Increase process
quality &
efficiency
Improved
communication
& collaboration
Streamlining
the process
Cost saving

12. Why e-Tendering? Cont.
Strategic
Benefits
Data for
strategic
sourcing
Business
intelligence
Real-time
reporting
Improved
transparency
Decrease
bureaucracy &
redundancy
Better decision
making
Green process
Corruption
free
Overhead
cost
reduction
Reduce
disputes

13. Resistance
Security
Lack of knowledge
Inadequate IT
infrastructure
High
investment
cost
Data
Integrity
e-Tendering Challenges

14. Resistance
Secure Buy-in through
stakeholder management
Communication
Training
Culture change
Business & technical
support
Challenges Solution

15. Security
Data Security
Quality
control
Training on
security
functionality
System
Security
Upgrade
Infrastructure
Backup &
Patch
updates
Challenges Solution

16. Training
• Provide training to End Users and buyers
• Provide training to suppliers
Support
• Onsite support to all stakeholders
• Online support
Involvement
• Involve all stakeholders from day one
• Motivate employees and stakeholders (Awards, promotion,
etc.)
Lack of knowledge

17. Benchmarking
Proper
Planning
Effective
execution
Adequate
Infrastructure
Challenges Solution
*Inadequate IT infrastructure

18. Challenges Solution
Cost Benefits

19. Challenges Solution – Data Integrity
Reporting and Business Intelligence
Classify operation & strategic
reporting
Identify processes KPIs
Contracts & Templates Database
Standardize contracts Categorize templates
Supplier Database
Initiate cleansing project Maintain database

20. Oracle Sourcing:
 Negotiation Styles (ex: Supplier Evaluation in RFI)
 Team Scoring
 Two Stage Evaluation of RFP
 Enhanced Spreadsheet Support
 Supplier response PDF
 Notification Subscription
 Earnest Money Deposit
 Surrogate buyer
 Descriptive Flex Field (DFF) in Oracle Sourcing Header
Oracle Procurement Contracts:
 Establish contracts standards
 Author contracts
 Negotiate contracts
 Approve and sign contracts
 Execute and monitor contracts
 Administer changes in the contracts
 Renegotiate and close out contracts
Business Case
Why we choose Oracle e-Tendering?

21. Add-ons Features
• The Flexibility of Oracle Application has given the opportunity
to customize the solution based on requirement
 Tender Fees Payment Confirmation
 Limited Tender Committee
 General Tender Committee
 Committee Collaboration
 Single Source Requests
 Limited Tender Requests
 Technical Evaluation Report
 Commercial Evaluation Report
 RFQ Approvals
 Supplier Quote Withdrawal
 Supplier Alternate Quote Submission
 Generation/Submission of Letter(s)
of Intent, Award, Retraction, Regret…

22. Business Case
•Purchasing •Payables
•General Ledger
•i-Procurement
•i-Supplier
•Procurement Contracts
•Sourcing
• Tender Fees Payment
Confirmation
• LTC/GTC Collaboration
• Single Source Requests
• Limited Tender Requests
• Technical Evaluation Report
• Commercial Evaluation Report
• RFQ Approvals
• Supplier Quote Withdrawal
• Supplier Alternate Quote
Submission
• Generation/Submission of
Letter(s) of Intent, Award,
Retraction, Regret…

23. Limited
Tender
Request
Single
Source
Request
Limited
Tender
Committee
General
Tender
Committee
Technical
Evaluation
Approval
Commercial
Evaluation
Approval
Purchase
Requisition
Tender
Creation
Publish
Tender
Supplier
Bidding
Bid
Evaluation
Bid
Award
LOI &
Contract
Create
Approve
Search
Delegate
Reassign
Scheduling
Supplier
Registration
E-tendering Process Flow

24. Project Implementation Consideration
*Recommended
Time
Change
Management
Documentation
Process Data
Decisions
Resources

25. Phase 1 (Pilot)
- Limited non-critical
tenders
- On-Site support team
- Provide on job training
for EU, Buyer &
Supplier
- Feedback report
- Issue log
Phase 2 (Roll Out)
- Select tenders based
on categories
- On-Site support team
- Continuous on job
training
- Feedback report
- Issue log
Phase 3 (Stabilization)
- All Tenders
- On-Site support
- On demand training
- Enhancement reports
- Maintain issue log
- Utilization reports
- Performance reports
6 Months 6 Months 6 Months
Post Go-Live Strategy *Recommended

26. Surveys & Statistics

27. Publication of
Notice
• 15 Days
Proposal
Submission
• 30 Days
Review
• At least 3 Days
Evaluation
• 21 Days
Planning and
Review
• 10 Days
Award
• 10 Days
Total= 88 Days
Online Notice
• 1 Day
Proposal
Submission
• 9 Days
Review
• 4 Days
maximum
Evaluation
• 21 Days
Planning and
Review
• 5 Days
Award
• 9 Days
Total= 49 Days
Tenderinge-Tendering
Tendering Vs. e-Tendering
Source: 2008, Deloitte "Impacts of the Introduction of the Public Contract Law"

28. Increase,
92%
Reduction
, 8%
Increase of Transparency
Increase,
77%
Reduction
, 23%
Increase of Value for Money
*Survey by the Portuguese Observatory of Technology and Engineering in 2010
Increase,
38%
Reduction
, 62%
Process Duration
Increase,
21%
Reduction
, 79%
Cost of Processes

29. E-procurement at Imperial College
In 2001, Imperial College in London had a fully implemented e-
procurement system and calculated that 50,000 hours of staff time
were released by automating the purchase order process.
Processing times have been reduced from 67 minutes using
manual systems to a few minutes using e-procurement. Imperial
College processed 50,000 transactions through its e-procurement
system in 2005-06.
Education Sector Cases

30. Surveys

31. Benefits Statistics :
 77 percent of organizations experience lower costs and achieve
better savings through e-sourcing
 62 percent report that e-sourcing improves efficiency and
enables the internal team to focus on more strategic initiatives
 58 percent find that e-sourcing opens the door to new supplier
relationships
Latest Survey by Intesource (29-04-2015)
*survey of procurement executives and practitioners, conducted by
Intesource 29-04-2015

32. Skill Gaps and Internal Resource Challenges:
 31 percent identified uncertainty around the categories they
should take to auction
 27 percent reported a lack of organization-wide support for e-
sourcing.
 20 percent identified limited internal resources as the primary
roadblock
 10 percent said the primary obstacle was a lack of qualified
suppliers.
Latest Survey by Intesource (29-04-2015)
 Despite the financial and functional benefits of e-sourcing, some
organizations still aren't leveraging e-sourcing to its fullest capacity.
When asked for the top internal challenge preventing their departments
from running more events

33. Procurement Team Talent Gaps
Talent Skills Gap Percentage
Data Analytical 50 %
Expertise 35 %
Innovation & Collaboration 35 %
Negotiation 15 %

34. References
• Puschmann, T, & Alt, R (2005), 'Successful use of e-procurement in supply chains', Supply Chain
Management, 10, 2, p. 122-133
• Toktaş-Palut, P, Baylav, E, Teoman, S, & Altunbey, M 2014, 'The impact of barriers
and benefits of e-procurement on its adoption decision: An empirical analysis',
International Journal Of Production Economics, 158, p. 77-90,
• Neupane, A, Soar, J, Vaidya, K, & Yong, J 2014, 'Willingness to adopt e-procurement
to reduce corruption: Results of the PLS path modeling', Transforming Government:
People, Process And Policy, 8, 4, p. 500-520,
• The 2009 EU e-Government Procurement Benchmark report
• Source: 2008, Deloitte "Impacts of the Introduction of the Public Contract Law“
• CIPS white paper e-sourcing
• CIPS white paper “ selecting an e-procurement solution”
• Intersource.com
• National Audit Office “Improving Procurement in Further Education Colleges in
England”