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1 Presented by. 2  EPCT13 is an ISO 9001 and ISO 27001 certified company committed to delivering world-class, economically viable, neutral impact eProcurement.

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Presentation on theme: "1 Presented by. 2  EPCT13 is an ISO 9001 and ISO 27001 certified company committed to delivering world-class, economically viable, neutral impact eProcurement."— Presentation transcript:

1 1 Presented by

2 2  EPCT13 is an ISO 9001 and ISO certified company committed to delivering world-class, economically viable, neutral impact eProcurement and eTendering solutions.  It is a member of UN/CEFACT, the UN organisation responsible for setting up international electronic document exchange standards for G2G & G2B transactions.  25,000 tenders successfully processed since 2010 & 1,000 tenders processed each month worth over US $1 billion.  Implemented successful eProcurement solutions across Asia where population is high & e-readiness is moderate.  End to End Solution (NIT to Contract Completion) with Highly Secured & authentic mechanism

3 3  In Industry:-  Strong partnership with the leading organizations to provide satisfactory service to customers.  In Target Market:-  Expertise in conveniently linking specialized suppliers with buyers through advanced technology of eProcurement.

4 4  About Country:-Brazil  Largest country in both South America/Latin American region*  World's 5 th largest country, both by geographical area and by population*  The Brazilian economy is the world's 7 th largest by nominal GDP*  About Industry:  The Brazilian public health system, the National Health System (SUS), is managed and provided by Government  The public health services are universal and available to all citizens of the country for free. *http://en.wikipedia.org/wiki/Brazil  According to the Brazilian Government, the most serious health problems are: Childhood mortality: 2.51% deaths Motherhood mortality: about 73 deaths per 100,000 born children in Mortality by non-transmissible illness: 151 deaths per 100,000 inhabitants caused by heart and circulatory diseases, & cancer. Mortality caused by external causes (transportation, violence and suicide): 72 deaths per 100,000 inhabitants

5 5  What is difference between Procurement & Purchasing:-  Purchasing refers solely to the process of buying goods and services, whereas procurement is a macro-process involving not only the process of purchasing of services and goods but also the logistics, storage, reception, inspection and monitoring processes.  eProcurement is macro-process developed with the help of ICT.

6 6  Relevance of eProc in the buyer’s industry:-  Since government is responsible for free the health care of citizens, the precautionary and curative measures attracts large volume of number of pharmaceuticals.  Typical challenges for E-Procurement in this industry / region?  More number of prosperous of bidders  Finalization of specification for medicine is a issue  Patented medicines does not have competitor  Small change in ingredients cause great change in cost  Continuous procurement

7 7  Benefits of eProc:-  Reduce transaction costs for procurement of pharma products  Improve process efficiency of procurement  Increase contract compliance  Reduce cycle times to manage efficient supply-chain of medicine  Save inventory costs & avoid stagnation wastage due to expiry

8 8  Monitoring of Benefits of eProc:-  Reduce transaction costs for procurement of pharma products Tracking of expenses: Average Cost per sample  Improve process efficiency of procurement Monitoring of Reduction in Time & manpower  Reduce cycle times to manage efficient supply-chain of medicine Monitoring reduced cycle time  Save inventory costs & avoid stagnation wastage due to expiry. Comparing earlier experience and present one.

9 9  Officials of Health Dept gather requirements for whole country & creates specifications.  Procurement for each pharma product is done by inviting bid through eSourcing system developed internally.  Generic medicines are procured based on approved catalogue price.  All pharma product manufacturers are registered with the government.  Suppliers duty is to supply the quality product at the location mentioned in the RFP.  Fragmented drug procurement at provincial or district level.  Absence of a comprehensive procurement policy  Government funding which is insufficient and/or released irregularly

10 10  Large Number of Suppliers & Products  Vested Interest of Prominent Suppliers and officials  Patented pharma products need to be recognized and not to be compared with other products.  Inadequate rules, regulations and structures  Public sector staff with little experience in responding to market situations  Donor agencies with conflicting procurement regulations  Lack of unbiased market information  Lack of trained procurement staff.  Patent Expiration

11 11  Develop, implement, integrate, host, operate and maintain eProcurement solution for-  Low Value product  High Volume product  Big Supplier marker  Objective:- To establish cost effective, transparent & efficient eProcurement system for Pharma Product in Brazil.

12 12  Reasons for Proposing new system:-  Emerging technology brings new products in a market.  Catalogue Purchase has limitations of exclusion of advanced technology.  Little competition  Less equity for suppliers  High cost of purchased product  Expected Outputs:-  Equity for all interested bidders  Maintaining optimum inventory of disposable pharma products  Reduction in procurement cycle time & Ensure timely delivery  Procure the most cost-effective drugs in the right quantities  Select reliable suppliers of high- quality products  Achieve the lowest possible total cost

13 13 Sr. No.Measuring ParameterBeforeAfter 1)Cost per Unit of Medicine PurchasedXY 2)Time from Floating RFP to Work Order issuance XY 3)Saving in Wastage of Pharam ProductsXY 4)Reduction in StaffsXY 5)Transparency from 3 rd party evaluationXy

14 14  Different eProcurement functions and responsibilities (selection, quantification, product specification, pre-selection of suppliers and adjudication of tenders) will be divided among different committees each with the appropriate expertise and resources for the specific function  Practical aspects Drug selection Quantification of drug requirements Product specifications Pre-selection of suppliers Adjudication of tenders

15 15  Prospective suppliers should be pre-qualified, and selected suppliers should be monitored through a process which considers product quality, service reliability, delivery time and financial viability  EPCT13’s eProcurement solution will be effected in the largest possible quantities in order to achieve economies of scale; this applies to both centralized and decentralized systems.  Procurement procedures/systems should include all assurances that the drugs purchased are of high quality, according to international standards.  Pharmaceutical procurement is a specialized professional activity which requires a combination of knowledge, skills and experience

16 16  EPCT13’s eProcurement solution will be effected in the largest possible quantities in order to achieve economies of scale; this applies to both centralized and decentralized systems.  Procurement procedures/systems should include all assurances that the drugs purchased are of high quality, according to international standards.  Legislation and regulations will be incorporated in proposed solution & updated regularly.  International and bilateral agencies should support the national procurement system  Procurement in decentralized systems needs special arrangements  Comparative price information is currently available to countries through the International drug price indicator guide

17 17  All project expenditure taken care by EPCT13  EPCT13 will develop eProcurement solution that will fetch a fixed charges subject to cost of bid & number of bidders participated.  Development, implementation, integration, hosting & O&M will be carried out by EPCT13 on behalf of Govt.  All government procurement will be carried out through this solution ONLY. But no guarantee of number of transactions.  After 5 years Data ownership will be with Government

18 18  RFQ/NIT by Govt published on EPCT13’s Solution  Alert message to registered bidders.  Quotation of Rate by supplier  Evaluation (QCBS)  Technical  Financial  Winner with Max. Bid Score = 0.5 Tech Fin  Issuance of Work order & Agreement  Billing, Payment & Contact Management  Completion Certificate & Exit

19 19  Market Analysis  Highly Saturated  Innovation  Global Competition  Knowledge Management  Situation Analysis  Complete health care responsibility with Govt  Free of Cost  Competitor Analysis  Many Competitors  Patented Technology  First Mover Advantage  Entry Barriers  Environmental Analysis  Political Affairs  Transparanacy  Accountability.

20 20  Expected Cost of Project = $ 10 Million  Expected Transactions per year = 5,00,000  Life of Project= 5 years  Expected Revenue in 5 years = $ 20 Million  Benefit-Cost Ratio > 1, IRR > 12%  Financial Feasibility tested with scenario Analysis  Insurance & Taxation as per government regulations

21 21  Staffs are required for-  Consultants (CM, PM, FM)  Application Development  Operations & Maintenance  Capacity Building  Help Desk  Legal & Contractual Management Team  Audit  3 rd Party Testing

22 22  Inadequate evaluation of the implications of the adoption or enhancement of e-procurement tools  Missing opportunities to implement strategies that improve procurement management without the need for investment in e-procurement  Some suppliers are sufficiently powerful to insist on the use of paper- based systems  Patent Expirations  Technology Risk  Organizational Risk  Acceptance Risk  Financial Risk  Political Risk

23 23 1) Project Charter, Requirements Analysis & Scope 2) Develop & test Software 3) Training to Suppliers & officials 4) Change Management (Migration to new Application) 5) Phase wise implementation 1) 1 st Phase :- All proc costing > $ 25 million 2) 2 nd Phase :- All proc costing > $ 10 million 3) 3 rd Phase :- All all procurements

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