July 21, 2011

mjunction services implements eProcurement solution for Ordnance Factory Board

  • Largest-ever eProcurement project of Rs13 crore goes live; to shorten procurement cycle time, reduce inventory costs and streamline procurement operations at OFB
Kolkata: mjunction services (mjunction), India’s largest eCommerce company, has implemented an eProcurement solution at Ordnance Factory Board (OFB), Department of Defence Production of the Ministry of Defence, Government of India. The system went live on March 29, 2011, and has been rolled out to all 41 of its factories as well as its headquarters in Kolkata. The system was formally inaugurated by the secretary, Department of Defence Production, at Ammunition Factory Kirkee, on May 9, 2011.

In March 2010, mjunction had won through competitive bidding one of the largest-ever eProcurement orders worth Rs13.22 crore from OFB to offer a complete end-to-end eTendering solution. This project is also one of the largest eGovernance orders from eastern India, spanning five and a half years on a turnkey basis for procurement of goods and services for over 50 locations of OFB including its headquarters, 41 factories, nine training institutes and allied institutions located across the country on an eTender mode.

When fully commissioned, the eProcurement solution at OFB shall cater to over 20,000 vendors and service around one lakh tenders every year. The eProcurement solution implemented by mjunction in consortium with NIIT Technologies (NTL) will help OFB in standardising its purchases, shorten its procurement cycle time, reduce its inventory costs and other recurring costs such as stationery, etc; increase vendor participation and transparency, and streamline eProcurement operations, apart from other associated automation benefits, which the solution encompasses.

The eProcurement solution at OFB is unique with state-of-the-art technology involving hardware, data centre, disaster recovery and connectivity. The scope of work covers the entire gamut of the tendering cycle. It will also accommodate organisation-specific processes, complexities, transactional load requirements and application interface with legacy system of OFB. The eTendering services for this project are being provided by buyjunction — the eProcurement arm of mjunction.

Viresh Oberoi, managing director, mjunction services, said, “We are extremely happy to announce that we have crossed one more milestone and broken yet another barrier. In view of the current focus on optimisation of input and sourcing costs, inventory levels, and maintaining efficient supply chain processes; our eProcurement services are a smart solution. At the same time, we are excited to be a part of the eGovernance drive in India.”

As on date, July 21, 2011, all 41 factories including OFB headquarters have gone live, 400 tenders have been published and 3,000 vendors have enrolled themselves. Today the project was reviewed by DM Gupta, chairman, OFB, along with Mr Oberoi and senior vice president of NTL. Mr Gupta complimented the project team of mjunction, NTL and OFB for the good work.

Advantages obtained by adopting eTendering solution:
  • Reduces procurement cycle time
  • Reduces cost of procurement
  • Enhances vendor satisfaction