E-Procurement through the Indian Government`s Version of Amazon.com: GeM
| Case Code: OPER147 Case Length: 16 Pages Period: 2014-2020 Pub Date: 2021 Teaching Note: Available |
Price: Rs.400 Organization : Government e-Marketplace Industry :Government Countries : India Themes: Supply Chain Management, E-Government, E-Business Operations,Types of E-commerce |
Abstract Case Intro 1 Case Intro 2 Excerpts
Excerpts
The GeM E-Procurement Process
Through GeM, the entire procurement process was expected to be seamless. It eliminated human interface in registration, order placement, and payment processing to a great extent. Registration, brand approval and product approval was free of charge on GeM, with no entry barriers. GeM was a secure platform, with the various documents on the portal being e-Signed at various stages by the buyers and sellers..
The Benefits
Tenders were issued by the DGS&D and the whole cumbersome process sometimes went on for months and years. GeM not only eliminated intermediaries, but also multiple levels of manual, sequential verification, and decision-making processes..
Performance of GeM
For FY 2019-20, the actual purchase on GeM was about Rs. 3.5 billion, which was way below its potential. It was observed that while Central Ministries procured around 60% of the products/services required through GeM, states and different central public sector undertakings (CPSUs) procured just 7% of the products/services required. GeM faced a bit of a challenge in getting all Central organizations to comply with Rule 149..
The Road Ahead
GeM estimated that it could help conduct procurements worth US$ 100 billion in three to five years. It was expected to produce annual savings of about US$ 10 billion. As of November 2020, 857,395 sellers and service providers were registered with the portal to sell 1,598,192 products and 52,476 service offerings (See Exhibit IX for Statistics on GeM). In the future, government officials would strive to undertake continuous monitoring to ensure that payments were not delayed to vendors and more states and PSUs used the platform for all their procurement..
Exhibits
Exhibit I: Generic Public Procurement Process in India
Exhibit II: Key Management Personnel of GeM, as of 2020
Exhibit III: Buyer Registration Process
Exhibit IV: Process of On-Boarding a New Seller on GeM
Exhibit V: Information on Databases
Exhibit VI: Benefits to Buyers
Exhibit VII: Benefits to Sellers
Exhibit VIII: Information about MSMEs
Exhibit IX: Statistics on GeM, As of December 2020
Exhibit X: Various Versions of GeM
Exhibit XI: New Features in GeM 4.0
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