The implementation of E-bidding for UMW Toyota Motor Sdn Bhd.
E-bidding is an electronically enabling tool that provides an on-line, real time, fair and equitable bidding process to facilitate an award of business within a specific time-frame.
E-bidding is one of the modules in E-Procurement undertaken by UMW Corporation via UET (Outsourcing IT services provider)
Series of discussion conducted in Jun and July of 2010, between UMW Corporation (i.e. Chief Procurement Officer) and UMW Toyota (Property Facilities Administration Division) and finally, UMW Toyota Motor Sdn Bhd decided to have our own licence to conduct e-bidding as depicted in below mentioned image:
Base on the understanding of e-Bidding process, procurement team prepared the following action plan that being shared with the relevant parties:
Other action items that is crucial for e-bidding:
- To include below-mentioned clauses to sourcing document:
- We reserve the right to use e-bidding for the award of this job
- We will consider e-bid results together with other considerations in deciding the contract award.
- Training suppliers on the e-bidding terms and conditions, and usage of software.
- E-bidding room and infrastructure, phone line, fax machine include overhead projector and screen.
The usual criteria required (specified in procurement guideline):
- The spend item/commodity can be accurately and comprehensively specified.
- Sound supplier pre-qualification/selection process.
- Spend item is of the type where "if all else is equal then price becomes the sole determinant".
- Availability of a competitive supply base.
- Spend item is not bound to principal supplier or require developing relationship with supplier for non-disruptive critical supply.
When do we use e-bidding?
Criteria specific for UMWT in term of project value and different in percentage (%) sighted for at least three (3) suppliers:
Things to set and configure:
E-bidding specific activities are as follows:
- Date and time of e-bid event
- Duration of e-bid event
- Minimum bid amount/value
- Auto-extend sample:
- Target price is where requesting division estimated to pay or has budget for.
Note : This price is for internal viewing only. The price cannot be seen by the supplier/bidders.
- Start price - there are three (3) options:
i. Last bought / historical price
ii. Estimated Price
iii. Lowest price - base on submission prior to e-bid event
- To encourage bids the setting of start price should be higher than current price.
Who is involves in e-bidding?
Four parties will involve in each e-bidding process:
Benefits of e-bidding: