HARVESTING - IT BENEFITS

By: Tushar Gupta - 1025

IFFCO
Indian Farmers Fertilizers Co-operative Ltd.
Setup as a multistate co-operative society in 1967. Largest manufacturers and distributers of nitrogenous and phosphate fertilizers globally. Owned by 37,000 farmer cooperative societies.

Objective
The primary issue behind doing this research paper was to know why did the IFFCO shifted from manual procurement system to eprocurement. Also, this explained how it got help from a technology that allowed for security as well as efficiency in the vendor management and e-procurement system.

Manual Procurement System

Interaction between IFFCO and vendor was by post, fax or at times by email. Lengthy and time consuming process. At times, it got difficult for its vendor to collect documents and submit bidding quotes on time. The cartels made of vendors did not allowed other vendors to participate. Security was the major issue.

E-Procurement
Introduced in 2003-04. Web based system for placement of tenders and receiving bids. E-mail alerts and SMS messages to vendors. Opening and evaluation of bids in a secured and legal environment using Public Key infrastructure (PKI), encryption and digital certificates. First corporate in India to implement eprocurement system.

E-Procurement (contd.)
For the smooth rollout of the e-procurement system, Mittal setup help desks at IFFCOs corporate office, plants and major marketing offices to address the queries of vendors.

Security
S. C. Mittal ensured the security by using class 3b digital certificates, which integrate the vendors identity with his digital signature for the highest level of security, and that it has been recognized by courts in India

Benefits
Provided a gateway to vendors for accessing information like order positions, payment details, previous orders, enquiry details like opening and closing of bids. No geographical limitation. Time savvy and transparent system. Vendors can update their profile online. The vendor base has grown in size with increased competition.

Benefits (contd.)
The vendor can submit his bids in parts and can revise his bid till the allowed submission date and time. However, IFFCO saves on cost of printing, dispatch, human resource, and filing. while vendors save on cost of traveling, preparation of bid, and dispatch

Obstacles
The whole process of e-procurement was new to vendors, partners and even internal users. Many of them were not computer savvy. Confidentiality process. and security of the whole