SAIL has initiated step to create internet based e-procurement modules for moving towards complete paperless transaction and conducting the entire procurement process online. E-commerce being a comparatively new area, SAIL initially took steps to device internal systems and procedures to conduct RA. The first three trial RAs were conducted till March 2002. The number rose to eighteen RAs during 2002-03 and fifty RAs in 2003-04. This has resulted in savings of 8-10% of processing by SAIL. This system has now been streamlines in all the steel plants of SAIL. From Feb’02 onwards, SAIL has so far sourced goods worth Rs 3000 crores (approx).
In case of IISCO Steel plant (ISP) which has been of subsidiary of SAIL, has also implemented e-procurement through mjunction. In the year 2006-07 it has e-procured materials namely refractory, calcined petroleum coke, aluminum shots & notch, aluminum bars and spares for a total value of Rs. 23 crores. In the year 2007-08 target value of e-procurement was 30 crores but it has already e-procured for a value of Rs. 40 crores up to February 2008. ISP is going through a massive modernization project with an estimated cost of Rs. 10000 crores. The project items are also being procured by the same system. Thus, implementation of e-procurement in SAIL has reduced input cost substantially.
SAIL has initiated step to create internet based e-procurement modules for moving towards complete paperless transaction and conducting the entire procurement process online. E-commerce being a comparatively new area, SAIL initially took steps to device internal systems and procedures to conduct RA. The first three trial RAs were conducted till March 2002. The number rose to eighteen RAs during 2002-03 and fifty RAs in 2003-04. This has resulted in savings of 8-10% of processing by SAIL. This system has now been streamlines in all the steel plants of SAIL. From Feb’02 onwards, SAIL has so far sourced goods worth Rs 3000 crores (approx).
In case of IISCO Steel plant (ISP) which has been of subsidiary of SAIL, has also implemented e-procurement through mjunction. In the year 2006-07 it has e-procured materials namely refractory, calcined petroleum coke, aluminum shots & notch, aluminum bars and spares for a total value of Rs. 23 crores. In the year 2007-08 target value of e-procurement was 30 crores but it has already e-procured for a value of Rs. 40 crores up to February 2008. ISP is going through a massive modernization project with an estimated cost of Rs. 10000 crores. The project items are also being procured by the same system. Thus, implementation of e-procurement in SAIL has reduced input cost substantially.
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