Chuwa M.

E-PROCUREMENT

PST 06208

By Chuwa M.
07/06/2023
Department of Business Studies
 e-Procurement Adoption in
2
Tanzanian Public Procurement
Learning Objectives
 Identify the critical success factors.

 Explain the current situation of e-

procurement in Tanzania public
procurement.

Chuwa M. 07/06/2023
 Shortcomings of the traditional public procurement
system
3

 Bureaucratic procedures
Traditional public procurement system is
characterized by a series of steps that can
sometimes delay procurement of
potential requirements due to
complicated procurement procedures
which are time consuming.

Chuwa M. 07/06/2023
 Shortcomings of the traditional public procurement
system cont…
4

 Corruption
Traditional procurement system is highly
exposed to corruption due to excessive
interaction/face-to-face contact between
buyers and suppliers.

Chuwa M. 07/06/2023
 Shortcomings of the traditional public procurement
system cont…
5

 Large volume of paper

The traditional public procurement
system forces public PEs to handle a lot
of paper work ranging from pre-order to
post ordering stage such as tender docs,
purchase orders, monthly and annual
procurement reports, etc.

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 Shortcomings of the traditional public procurement
system cont…
6

 Lack of flexible centralized control

The traditional public procurement
system, the centralization of procurement
information & reporting structure is a bit
disorganized. E-procurement now allow
for centralized control through systems
such as Procurement Management
Information System (PMIS).
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 Shortcomings of the traditional public procurement
system cont…
7

 Lack of information quality

The quality of information in the traditional
procurement system lacks trust to some
extent because of high exposure to fraud
(paper based information can easily be
manipulated/forged).
Also storage of such information pose
problems eg; cases of lost files, receipts, etc.
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 Legal basis for applying e-Procurement in Public
Procurement
8

 PPA 2011 and PPR 2013 mandates PPRA

to determine, develop, introduce ICT
systems including a public e-
Procurement system

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 ICT based procurement tools for information
sharing
9

1. Website: http//www.ppra.go.tz
2. Tender Portal: http//tenders.ppra.go.tz
3. PMIS: http//pmis.ppra.go.tz
4. ProcurementForums:
http//forums.ppra.go.tz
5. Mobile Tender Alert Service

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 PPRA Website
10

 First developed in 2004 and is undergoing regular

reviews in design.
 Procurement laws, standards, procedures &
guidelines;
 Advertisement & news on procurement-related
events (trainings, seminars, workshops etc);
 Professional articles on procurement issues;
 Reports;
 Procurement journals etc

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 Tanzania Procurement Forum
11

 Established in 2009 to provide opportunity to

stakeholders to share professional views, experience
& knowledge on procurement;
 Topics for discussion are categorized as:
 Procurement acts & regulations
 Procurement processes & management;
 Capacity building;
 Enforcement & compliance;
 Ethics issues (Fraud, bribery, collusion & anti-
corruption)
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 Forum cont…
12

 A small team formed by PPRA to

improve participation of stakeholders in
the forum, which include:
 Generation of exciting topics for
discussion;
 Providing professional responses to
issues raised;

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 Tender Portal
13

 Developed in July, 2010 to deal with

tenders only, ie; notices of annual plans;
advertisement of tenders; notices of
information on awarded contracts;

 Tenders are categorized in terms of

Goods, Works, Consultancy & Non
Consultancy services
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 Tender Portal cont…
14

 Tender are further categorized in terms of

technical specialization e.g IT, stationery
etc.
 Advanced search helps reach specific
type of tenders.
 Summary of tender award volumes by
FY, are automatically displayed.

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 Procurement Management Information System
(PMIS)
15

 The system enables e-checking &

monitoring of procurement processes.
 It is a web-based system for online
submission of annual procurement plans
& reports on implementation of the plan
to PPRA by PEs;
 Requires Internet, computers & IT skilled
user
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 Critical Success Factors for e-Procurement
16

 Training of staffs
Training of staffs in procurement practices &
the use of e-Procurement tools.

 Early supplier involvement

It is important to demonstrate the proposed
solution to the suppliers & discuss any
necessary changes.
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 Critical Success Factors for e-Procurement cont…
17

 Capital investment on technological

infrastructure
E-procurement application require
supportive soft & hard technological
infrastructure. eg: there should be stable
power supply, uninterrupted network
infrastructure, e-procurement software,
adequate servers & backups.
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 Critical Success Factors for e-Procurement cont…
18

 Security of data
Because of sensitivity of government
data & payments, security of data is
critical in e-Procurement. For e-
Procurement to be successful, both
buyers & suppliers need to have
complete confidence & trust in the
security of information.
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 Critical Success Factors for e-Procurement cont…
19

 Re-engineering the procurement

process.
Implementation of e-Procurement may
require re-engineering of the existing
procurement processes as roles might
change substantially with the new
process

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 Critical Success Factors for e-Procurement cont…
20

 Top management support

Top executives need to eliminate the
negative attitudes toward e-procurement
as an overhead than as a strategic
function & hence be able to collaborate
to implement the system successfully.

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 Critical Success Factors for e-Procurement cont…
21

 Educating suppliers on e-Procurement

benefits.

 It is also critical to link the e-

Procurement system to the financial
management system to facilitate the
process of online payment to suppliers.

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