Mumbai, Mar 17 (UNI) Oil and Natural Gas Corporation Ltd. (ONGC) has achieved another first by becoming the only PSU to introduce SAP powered "Reverse Auction" process.
Termed as "Live Action Cockpit" (LAC), the system will enable ONGC to collect and compare price and bid information of various suppliers in a real-time, open bidding environment.
Launching the Reverse Auction Process herei Mr. U.N. Bose, Director (T&FS), said "ONGC strongly believes in adopting world-class processes and technologies to generate better value for its stakeholders. The reverse auction will ensure transparency in the tendering process and thereby generate confidence amongst the bidders. It will also add speed to the process of procurement which will allow ONGC to source best in class technology. On the basis of the pilot project it is estimated that reverse auction will be able to accrue a cost saving of nearly 10 per cent." He appreciated SAP for having been the trusted partner of ONGC in the area of business software and for having successfully used SAP ERP (Enterprise Resource Planning) in the last few years.
LAC would be the sole procurement window for all 'high value' tenders, valuing more than Rs.one crore. This process would provide a level playing field to bidders having necessary techno-commercial capabilities. Adhering to the guidelines of CVC the Reverse Auction process would ensure standardisation of the procurement process of ONGC.
The reverse auction process enabled supplier selection process by facilitating vendors worldwide to participate in the bidding process seamlessly. ERP software implemented by SAP at ONGC, supports industry best practices in procurement and delivers advanced e-procurement. This is among the largest such projects undertaken by SAP in the public sector.
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