The Indian Railways is soon going to launch a digital contract, a digitization system to manage its entire supply chain in all areas.
“This move is aimed at improving the ease of doing the business and transparency”, one of the official familiar with this matter told us.
With an 100% E-bids and E-auctions, which are already added in this system, the railways also planning to use these initiatives to provide an unimpeded flow of materials, finance and information.
On April 11, Minister of Railways Suresh Prabhu will launch the digital contract, a seamlessly integrated digital supply chain, which will include stakeholders, industries, financial institutions, internal customers of railways and agencies which will create an efficient, responsive and transparent systems.
The system includes the digitization of process such as sending invoices, inspections, offices, reception, billing and bill payments, guaranteed use of analytical monitoring and to increase the efficiency of the supply chain in the real time.
Official added “The digitization of the supply chain should be seen as a tool to create a efficiency, reduce the entry barrier and transaction cost and increase the transparency.”
On Tuesday, an Indian travel app RailYatri claimed that Bharti Airtel ha sthe widest network coverage among the competing telecom’s companies with almost 71% network connection in Delhi-Kolkata route, as compared to Vodafone India who has 58% network coverage.
Railways have an extensive supply chain to support, maintain and build their huge asset base to maintain the system and provide safe and efficient transportation services.
The railways supply chain has a large numbers of stakeholders and entails a huge recurring expenditure of Rs 50,000 crore per year.
The railways supply chain creates a huge amount of business and employments upwards, so it is essential in railways operation
This railway supply chain generates large volumes of business and employment up, so it is essential in railway operation.
Such digitization will allow the analyst to use the decision-making, reduce inventory and shorten the cycle of the purchase, which will lead to a decrease in the cost of production and services.
Railways emphasize the needs to maximize the use of ICT to improve the transparency and efficiency of government business processes, on the one hand and will improve the ease of doing the business on other hands.
Minister of Railways Suresh Prabhu has stressed the commitment of the ministry in his speech in 2016’s railways budgets.
“We intend to enter a new era by switching to a paperless contract management system where not only bids will be done online, but the entire process leading to the tender will done electronically. We have complete the completed the trail for the above-mentioned and intend to release it on the whole basis in India by next financial year” He added.
As the paperless finalization competition was implemented, and the entire process from the publication of the tenders to the issue of accepting letters is now digital we are going to launch a digital contract, which is a result of a digital and paperless decision-making process.
The digitization of the supply chain would include the integration of the information flows, physical flows and financial flows between Indian railways and their partners in the supply chain.
This includes a complete digital processing of the internal business process of the supply chain of the materials and the smooth integration of processes controlled by various stakeholders in the digital forms to achieve a fully integrated, paperless and digitized supply chain.
The supply chain of Indian railways is managed on single website, which is annually processes more than Rs50,000 crore through 100 percent electronic bidding.
The supply chain also handles more than 2,500 crore in auction sales through 100% electronic auctions per year.
In addition to this, It has more than 52,000 registered suppliers for deliveries, an extensive supply chain processes over 2,664 registered bidders for scrap sales.
This huge supply chain is managed from the headquarters of 17 zonal railways and 8 productions divisions, on more than 300 places in which they are located along with the entire length and width of the country.
The railways are holding a conference on 11 April, the goal of which is to create a platform for various stakeholders so that they can share their plans and ideas to identify the problems and opportunities for achieving the vision of fully digitized supply chain.
[graphiq id=”6eS1S8kO8yp” title=”Indian Railways” width=”500″ height=”810″ url=”https://w.graphiq.com/w/6eS1S8kO8yp” ]