eprocurement in South Africa

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1 eprocurement in South Africa November 2009

2 Content The Journey Business Requirements Solution Offering

3 The Journey The Integrated Financial Management System IFMS project is the lead phase of a priority initiative led by the National Treasury to review and upgrade Government s transverse information technology (IT) systems. The objective of this project is to enhance the integrity and effectiveness of expenditure management and performance reporting in order to ensure effective service delivery. Transverse systems are defined as the general administrative systems required by all Provinces and Departments which include: Financial management systems Human resource & payroll management systems Integrated supply chain management systems In 2005 a cabinet memo was approved that these transversal systems namely Supply Chain Management, Human Resources, Finance and Business Intelligence should be replaced, this included all the procurement management systems of the government.

4 IFMS Project Overview The IFMS project is the establishment of an integrated information system solution (ERP type) for government supporting the full government business cycle from strategic planning through operational planning & budgeting, implementation and in-year reporting to end year reporting. It is an important component of the government s initiative to improve service delivery to the citizen through standardised and integrated business processes, information, governance and reporting.

5 Supply Chain Management Framework The following business processes form the key operational functions for Supply Chain Management as described by legislation to manage all of governments goods and services. Demand Management Acquisition / Procurement Management Logistics / Inventory Management Disposal Management Performance Management Supply Chain Management Policy Framework

6 Procurement Framework The following business processes form the key operational functions for Procurement Management as described by legislation. This includes the unique requirement s for supplier rotation and the evaluation of tenders according to the preferential points system. Procurement Options Supplier Management Contract Management Order Management Performance Management

7 IFMS Architecture This IFMS architecture diagram gives an indication of the different ways to access the solution which allows for new innovative ways for government to interact with the public.

8 Business Standards Corporate Reference Data Business Requirements

9 Codification In order to enable the control and management of national and provincial codification data to support the business requirements a codification policy framework was established to address the following through the introduction of standards. Accurate and uniform management information Cross governmental visibility on all expenditure Allow for consolidated planning across government Effective expenditure control and optimisation Avoiding unnecessary inventory build-up Lower purchase prices due to economies of scale through strategic sourcing Transparency of supply costs Enhance integrated supply chain operations through effective management Quicker identification of supply items and services Ability to share information between departments Cross service supply optimisation Supplier performance management

10 Corporate Reference Data The objective of corporate reference data is to support Governmental systems by being an integrated Source of Truth in terms of referenced data to provide consistent aggregated Business Intelligence. Business Functions: The realisation of Government Policies To provide a consistent set of reference data and functions To enable information aggregation within Government Information exchange and systems integration Gov-internal and External; To supports data quality, already when data is created Promotes software reusability Eliminates data duplication and

11 Solution Offering One of the key functional offering within the IFMS procurement solution is the supplier portal which will open up a communication channel to suppliers allowing them to interact actively within the following areas of the procurement process: Purchasing Receiving Invoice and Payments Supplier Information Management

12 Solution Offering Purchasing: View supplier agreements Acknowledgement of purchase orders Submit change requested electronically View purchase orders including along with invoice and receipts history Manage contract deliverables View contractor time cards

13 Solution Offering Receiving: View delivery schedules View receipt history View returns and inspection results View overdue receipts Delivery performance

14 Solution Offering Invoice and Payments Capture and view invoice information Support dispute resolution View payments received Supplier Information Management Supplier on-line registration Enable suppliers to maintain their own information Enable suppliers attach mandatory documents Provide visibility on their purchase orders, invoices and payment

15 Next Phase Inventory Management Record inventory at hand Have minimum stock levels Link to reordering Maintenance and repairs Demand Management Populate procurement plans Link to Budgets

16 END

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