In order to improve services and business transparency, the Indian Railways will be launching digital contract. This contract will be a blanket digitisation of its entire supply chain across all zones.
The digital contract with an integrated supply chain is expected to be launched on April 11 by Railway Minister Suresh Prabhu.
This is a crucial project as railways have a vast supply chain to maintain and it requires a huge asset base to run the system while providing a safe, secure and efficient transport to passengers.
As per reports, 100% e-tenders and e-auctions have already been added to the system. Now the railways are working to create an easy flow of material; finances and information. This system will digitise various processes like bill submission, dispatches, security checks, receipt, bill passing and payments, warranty monitoring. This will be powered by the use of analytics to increase the efficiency of the supply chain.
“Digitisation of the 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 importance of this supply chain which has a number of stakeholders and requires a huge recurring expenditure of the order of Rs 50,000 crore annually, is expected to generate a good business and will uplift the employment status. Digitisation of processes can also help in linking budgets directly with the outcomes; a move government is focusing on, the official said.
Railway Minister Suresh Prabhu had highlighted the commitment of the ministry in his budget speech 2016.
“We intend to usher into 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 an 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 the 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.