New Tech Helps ONGC Bid Seamlessly
By CXOtoday Staff
Mumbai, Mar 18, 2008

Oil and Natural Gas Corporation (ONGC) has introduced SAP powered 'Reverse Auction' process. Now, the company can collect and compare prices and bid information of various suppliers in a real-time, open bidding environment.

Contextually, ONGC is the only PSU in India to introduce the process. Termed as 'Live Action Cockpit' (LAC), the system will enable ONGC to collect and compare price and bid information of various suppliers in a real-time, open bidding environment.

In ONGC, LAC will be the sole procurement window for all 'high value' tenders, valuing more than Rs. 1 crore. This process will provide a level playing field to the company's bidders having necessary techno-commercial capabilities. Adhering to the guidelines of CVC, the Reverse Auction process will ensure standardization of the procurement process of ONGC.

On the occasion of launching the new SAP process in Mumbai, U. N. Bose, director (T&FS) of ONGC has said, "ONGC strongly believes in adopting world-class processes and technologies to generate better value for its stakeholders. The reverse auction will ensure transparency in the tendering process and thereby generate confidence amongst the bidders. It will also add speed to the process of procurement that will allow ONGC to source best in class technology. On the basis of the pilot project, it is estimated that reverse auction will be able to accrue a cost saving of nearly 10%."

Commenting on the new technology absorption, Ranjan Das, president and CEO of SAP Indian Subcontinent, has said, "SAP is proud to be part of such a powerful initiative on one of India's largest public sector organizations. The LAC will bring in higher efficiency, cost savings and transparency to ONGC's procurement processes as it continues on its path of being a global Oil and Gas leader. Such initiatives prove that when it comes to harnessing technology for more efficient business operations, public sector companies like ONGC are second to none globally."


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