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The Indian Railways is set to launch digital contract, a system of digitisation of its entire supply chain across all zones.
The step is aimed at improving the ease of doing business and transparency.
With 100 per cent e-tenders and e-auctions already assimilated into the system, the railways is further planning to build on these initiatives to achieve seamless flow of material, finances and information.
Integrated supply chain
Digital contract, a seamlessly integrated digital supply chain to be launched by Railway Minister Suresh Prabhu on Tuesday, envisages involving stakeholders, including industries, financial institutions, internal customers of railways and inspecting agencies to create an efficient, responsive and transparent system. The system includes digitisation of processes such as bill submission, inspection, dispatches, receipt, bill passing and bill payments, warranty monitoring and the use of analytics for increasing supply chain efficiency in real time.
“Digitisation of supply chain should be seen as a tool for generating efficiencies, reducing entry barriers and transaction costs and increasing transparency,” said a senior Railway Ministry official.
The Railways has a vast supply chain to maintain, sustain and build its huge asset base, to run the system, and to provide transportation service which is safe, secure and efficient.
The supply chain of the railways has a large number of stakeholders and involves huge recurring expenditure of the order of ₹50,000 crore annually.
Digitisation of processes can also help in linking budgets directly with the outcomes, a move the government is focusing on, the official said. Digitisation will enable use of analytics for decision-making, reduce inventories and shorten procurement cycle time.
Paperless tendering
Suresh Prabhu had said in his railway budget speech last year: “We intend to usher in a new era by switching over to paperless contract management system, where not only the bids are invited online but the entire process leading to award of a tender is also done electronically. We have completed the trial run for the above and intend to roll it out on all India basis in next financial year.”
“Since paperless tender finalisation has been implemented and the entire process from publication of tenders to issue of acceptance letter is now digital we are going to launch digital contracting, which is resulting from digital and paperless decision-making process,” the official said.
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