Presentation to IIAC by Stanley Wong Deputy Director of Government Supplies.
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Presentation to IIAC by Stanley Wong Deputy Director of Government Supplies
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Transcript of Presentation to IIAC by Stanley Wong Deputy Director of Government Supplies.
Presentation to IIAC
by Stanley Wong Deputy Director of Government Supplies
Government Supplies Department
Purchasing agent for government departments and non-government public bodies (including Hospital Authority) acquiring high value goods and services
Store and deliver common user items
Total value of purchases : HK$6,794 million
(US$873 million)
Registered suppliers : 4,864 Tender invitations issued : 44,680 Tender offers received : 9,711 Contracts awarded : 4,124
Key Procurement Statistics 1999
computer equipment and software :HK$2,513 million (US$324 million) 37%
pharmaceuticals :HK$1,288 million (US$166 million) 19%
aircraft and spares:HK$737 million (US$95 million)11%
hospital and medical equipment :HK$413 million (US$53 million) 6%
telecommunications equipment and spares:HK$272 million (US$35 million) 4%
Major categories of purchases
Key Procurement Statistics 1999
Key Procurement Statistics 1999
Major categories of purchasesscientific, analytical and laboratory equipment
and consumables :HK$190 million (US$25 million) 3%
medical consumables :HK$164 million (US$21 million) 2%
photographic and audio/video equipment and consumables :
HK$146 million (US$19 million) 2%other categories :
HK$1,071 million (US$138 million) 16%
Purchased products were manufactured in 38 different countries or administrative regions
Less than 2% of products originated in Hong Kong
Approx. 90% of tenders submitted by branches/agents in Hong Kong
Key Procurement Statistics 1999
IT Systems Being Maintained
Two mid-range based computer systemsGoods On-line Ordering, Distribution, Stock
Management and Accounting Network System (GOODSMAN)
Procurement Management System Upgrade (PMSU) One web-based system
Electronic Tendering System (ETS)
GOODSMAN
The system supports2 LANs with 43 and 15 workstations at GSD
Headquarters and GLC285 remote terminal users
Major functions of the system provided to remote terminal users includeOn-line orderingOn-line Enquiry
The system was enhanced in June 1999 by a barcode function whichImproves the efficiency of warehouse operationImproves the accuracy of stock verification, picking and
goods receipt functions
PMSU
Supports more than 100 user licenses installation and Chinese character processing
Electronic Data Interchange (EDI) ready Internet ready with web enabled version
available Enables GSD to enhance tender processing, the
evaluation of offers, order/contract monitoring and supplier performance monitoring
Establishes an on-line linkage between remote clients and GSD Procurement Division to facilitate information interchange
Services provided by electronic means to subscribersregistration of suppliersnotification of tendersissue of tender documentsreceiving and responding to enquiriessubmission of tender offersnotification of contract award
Suppliers have choice between manual system and electronic tendering system
Electronic Tendering System
Operating Statistics (as at 22 September 2000)
403No. of subscribers
-200
0
200
400
600
7-A
pr-0
0
14-A
pr-0
0
21-A
pr-0
0
28-A
pr-0
0
5-M
ay-0
0
12-M
ay-0
0
19-M
ay-0
0
26-M
ay-0
0
2-Ju
n-00
9-Ju
n-00
16-J
un-0
0
23-J
un-0
0
30-J
un-0
0
7-Ju
l-00
14-J
ul-0
0
21-J
ul-0
0
28-J
ul-0
0
4-A
ug-0
0
11-A
ug-0
0
18-A
ug-0
0
25-A
ug-0
0
1-Se
p-00
8-Se
p-00
15-S
ep-0
0
22-S
ep-0
0
Weekly total Withdrawal/DeletionAccumulative total
Operating Statistics (as at 22 September 2000)
526No. of tenders issued through ETS
(total value HK$669 million)
0
200
400
600
7-A
pr-0
0
14-A
pr-0
0
21-A
pr-0
0
28-A
pr-0
0
5-M
ay-0
0
12-M
ay-0
0
19-M
ay-0
0
26-M
ay-0
0
2-Ju
n-00
9-Ju
n-00
16-J
un-0
0
23-J
un-0
0
30-J
un-0
0
7-Ju
l-00
14-J
ul-0
0
21-J
ul-0
0
28-J
ul-0
0
4-A
ug-0
0
11-A
ug-0
0
18-A
ug-0
0
25-A
ug-0
0
1-Se
p-00
8-Se
p-00
15-S
ep-0
0
22-S
ep-0
0
Weekly totalAccumulative total
Operating Statistics (as at 22 September 2000)
2,666No. of tender documents downloaded
0
1000
2000
3000
7-A
pr-0
0
14-A
pr-0
0
21-A
pr-0
0
28-A
pr-0
0
5-M
ay-0
0
12-M
ay-0
0
19-M
ay-0
0
26-M
ay-0
0
2-Ju
n-00
9-Ju
n-00
16-J
un-0
0
23-J
un-0
0
30-J
un-0
0
7-Ju
l-00
14-J
ul-0
0
21-J
ul-0
0
28-J
ul-0
0
4-A
ug-0
0
11-A
ug-0
0
18-A
ug-0
0
25-A
ug-0
0
1-Se
p-00
8-Se
p-00
15-S
ep-0
0
22-S
ep-0
0
Weekly totalAccumulative total
Operating Statistics (as at 22 September 2000)
355No. of offers received
0100200300400
7-A
pr-0
0
14-A
pr-0
0
21-A
pr-0
0
28-A
pr-0
0
5-M
ay-0
0
12-M
ay-0
0
19-M
ay-0
0
26-M
ay-0
0
2-Ju
n-00
9-Ju
n-00
16-J
un-0
0
23-J
un-0
0
30-J
un-0
0
7-Ju
l-00
14-J
ul-0
0
21-J
ul-0
0
28-J
ul-0
0
4-A
ug-0
0
11-A
ug-0
0
18-A
ug-0
0
25-A
ug-0
0
1-Se
p-00
8-Se
p-00
15-S
ep-0
0
22-S
ep-0
0
Weekly totalAccumulative total
Operating Statistics (as at 22 September 2000)
Percentage of e-tenders out of all tenders issued
72% of total number of tenders
75% of total value of tenders
Security ConsiderationsSecurity Considerations
Application Security FrameworkApplication Security FrameworkApplication Security FrameworkApplication Security Framework
PrivacyPrivacy AuthenticityAuthenticity
IntegrityIntegrity Non-repudiationNon-repudiation
TotalSecuritySolution
Points to note Technical infrastructure, including
security features, have worked satisfactorily
Take up rate slow but rising steadily
Suppliers may need to redesign their business processes
Future developments Can lead to wider system linking
suppliers with many different public sector and private sector organizations
GSDGSD SystemSystem SupplierSupplier
SupplierSupplier
SupplierSupplierinitial system
extended system
SystemSystem
SupplierSupplier
SupplierSupplier
SupplierSupplier
SupplierSupplier
SupplierSupplier
SupplierSupplier
SupplierSupplier
GSDGSD
other public
sector purchasers
private sector
purchasers
Future Developments Enhancement to GOODSMAN
To support international barcodes To support web-based ordering of common-user items To accept EDI interface with Hospital Authority
Enhancement to PMSU To provide online interface with Pharmaceutical Supplies Sys
tem of Hospital Authority in EDI format To cope with ETS enhancement to support CTB tenders and e
Cert To cope with GOODSMAN enhancement to support internatio
nal barcodes Enhancement to ETS
Extension of ETS to tenders with value above HK$10 million Other parts of public sector may also use electronic tendering
Wider applications of e-
commerce Electronic marketplace
For low value purchasesPurchasers display their requirements and p
otential suppliers respond with their offers Electronic products catalogues
range of available products and prices displayed in purchasing organization’s product catalogue
suppliers maintain the content of their page of product catalogue, provide updates to product features and prices
end-users select from catalogue the product brand that is available in the most favourable terms
Suppliers can offer more comprehensive packaging of related products and services with flexibility to adapt to unexpected changes
Increases power of the purchaser vis à vis the suppliermore comprehensive product search and analysis
to find best available offeryour alternative supplier is just a mouse-click awa
y Government procurement may become truly interna
tionalsuppliers may seek access to a wider range of gov
ernment markets
How will the Internet change Government Procurement?
Possibilities for government purchasersgovernments may eventually need to
follow the trend to Internet tradingprocurement rules may need to be
modified to take account of the changing environment
purchasers should retain flexibility to adapt to rapid changes in product features, prices and package deals
How will the Internet change Government Procurement?
Information Systems Strategy Study (ISSS)
Information Systems Strategy Study (ISSS)
To assess the information technology development potential
To quantify the IT requirements of GSD in the next 5 years
To assess the following IS opportunities in arriving at a portfolio of strategic applications:To enhance the GOODSMAN systemTo enhance the PMSU systemTo enhance the relevant PC-based applications of
Allocation Stores Ledger Posting System (ASLPS)Feasibility study on computerization of inventory and
uniform records maintained in departmental supplies section
Information Systems Strategy Study (ISSS)
To explore on the following IT opportunity:Contract Management (using Internet technology)Auto-replenishment of stock by suppliersBusiness improvement opportunities with the use of IT with a
view to enhancing productivity, reducing costs, and improving customer service
Electronic Payment (with GSD contractors)Electronic Tendering and Electronic Procurement for other bur
eaux/departments
Conclusions
Successful migration to e-Commerce requires:User maturityAn advanced, stable technological infrastructureProcurement rules may need to be modified to take
account of the changing environment
END
