Indian Railways supply chain to go digital

The step is aimed at improving the ease of doing business and transparency.

New Delhi, April 10: The Indian Railways will be launching digital contract, a system of digitisation of its entire supply chain across all zones.

With 100 per cent E-tenders and E-auctions already assimilated into the system, railways are further planning to build on these initiatives to achieve seamless flow of material, finances and information.

Digital contract, a seamlessly integrated digital supply chain, to be launched by Railway Minister Suresh Prabhu on April 11, 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 like bill submission, inspection, dispatches, receipt, bill passing and bill payments, warrantee monitoring and enabling use of analytics for increasing supply chain efficiencies in real time.

For efficient, transparent service

"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.

Railways have 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 railways has a large number of stakeholders and involves huge recurring expenditure of the order of Rs 50,000 crore annually. This supply chain of railways generates large volumes of business and employment upstream, hence it is critical in railway functioning.

Digitisation of processes can also help in linking budgets directly with the outcomes, a move government is focusing on, the official said.

Enabling use of analytics

Such digitization will enable use of analytics for decision-making, reduce inventories and reduce procurement cycle time leading to reduced cost of products/services.

The railways have been stressing on the need for maximising use of ICT for increasing transparency and efficiency of government business processes on the one hand and improving ease of doing business on the other.

PTI