Introduction to GeM Portal
GeM Portal is a digital initiative of the Central Government aimed at transitioning from a manual public procurement process to a simpler, more efficient, and accountable system encompassing the entire public procurement process.
Vendor Assessment Process on GeM portal
The Vendor Assessment Process on GeM Portal has been designed to streamline the assessment of vendors and improve transparency in the Government procurement process.
The process allows users to rate vendors based on their performance and compliance with contractual obligations. Users can also submit complaints against vendors who have not met their obligations.
The vendor assessment process is an important part of the GeM Portal and ensures that only quality vendors are registered on the site. It also helps Government buyers make informed decisions about who they do business with.
Challenges in Vendor Assessment
It is a challenge for the Procurement Officers to identify the right vendor who can provide the best quality product at the most competitive prices.
There are various parameters on which a vendor is assessed like delivery, payment terms, warranty/guarantee, etc. A systematic and well-defined assessment process needs to be followed to shortlist vendors.
The first step in the vendor assessment process is identifying the requirements of the organization. This includes understanding the requirement of the end user, what are the specifications of the product/service, what is the quantum required, the delivery timeline, etc. Once these requirements are finalized, they need to be shared with all potential vendors who can meet these criteria.
After receiving bids from various vendors, a comparative analysis needs to be done to understand which vendor can provide the best value for money. The cost of the product/service is not always directly proportional to its quality.
Hence, a trade-off analysis needs to be done by taking into account all relevant factors. After this analysis, a few vendors are impaneled and given an opportunity to participate in the e-bidding/reverse auction conducted on the GeM portal.
During e-bidding/reverse auction on the GeM portal, it is important for bidders to understand that the lowest quoted prices may not always mean the best value for money proposition and they should offer their most competitive prices based on quality and other relevant factors. The final decision of selecting a vendor is taken by taking into account all
Challenges in Vendor Onboarding on GeM
Vendor onboarding is assessing and onboarding new vendors to do business with an organization. The challenges in vendor onboarding can be divided into two categories: technical challenges and organizational challenges.
Technical challenges in vendor onboarding include:
1. Lack of standardisation: There is no one-size-fits-all approach to vendor onboarding, and each organisation has its own unique requirements. This lack of standardisation makes it difficult to develop automation tools and processes that can be reused across organisations.
2. Complexity: Vendor onboarding involves multiple steps and can be quite complex, especially for large organisations with many vendors. This complexity can make it difficult to manage the process effectively.
3. Data quality: In order to assess vendors accurately, organisations need high-quality data about the vendors. However, this data is often spread out across different systems and departments, making it difficult to consolidate and cleanse.
Organizational challenges in vendor onboarding include:
1. Silos: Vendor onboarding often involves multiple departments within an organization, such as Procurement, Legal, IT, and Security. However, these departments often operate in silos, making it difficult to coordinate the effort required for successful vendor onboarding.
2. Change management: Because vendor onboarding usually requires changes to existing processes and systems, it can be difficult to get buy-in from all stakeholders involved. Effective change management is essential for successful vendor
Solutions to Overcome Challenges
There are many challenges that can be faced while conducting a vendor assessment on the GeM portal. Some of these challenges include:
1. Lack of awareness among buyers about the process and requirements: One of the main challenges in conducting a vendor assessment on GeM portal is the lack of awareness among buyers about the process and requirements. Often, buyers are not aware of the importance of conducting a vendor assessment or what factors need to be considered while assessing a vendor. This can lead to vendors being assessed inaccurately, which can ultimately impact the quality of products and services procured.
2. Lack of standardisation in vendor assessment: Another challenge in conducting a vendor assessment on GeM portal is the lack of standardisation in the process. There is no prescribed format or guideline for conducting a vendor assessment, which often leads to inconsistencies and errors in the assessments done by different buyers. This can again impact the quality of products and services procured from vendors.
3. Time-consuming process: Conducting a vendor assessment on a GeM portal can be quite time-consuming, especially if buyers are not familiar with the process. It often takes multiple rounds of communication between buyers and vendors to finalise an assessment, which can add to the overall time taken for procurement.
4. Difficulties in comparing vendors: One of the main objectives of conducting a vendor assessment is to compare different vendors before selecting one for procurement. However, this can often be difficult as there is no common
Impact of Streamlining the Assessment Process
Vendor assessment is a process of evaluating the capabilities, resources, and track record of a vendor in order to determine whether or not they are suitable for a particular project or contract. It is an important part of the procurement process, as it helps to ensure that only qualified and capable vendors are selected for projects.
The impact of streamlining the assessment process can be significant. By reducing the time and effort required to assess vendors, organisations can save considerable resources. In addition, streamlining the assessment process can also help to improve vendor selection decisions by making it easier to compare and evaluate vendors side-by-side. Ultimately, this can lead to better outcomes for organisations and improved value for taxpayers.
Conclusion
Vendor assessment on GeM portal is a necessary part of ensuring that the goods and services provided are of high quality.
Despite the challenges posed in this process, there are certain strategies that can be implemented to simplify vendor assessment such as developing an efficient workflow, relationship building with vendors, keeping up-to-date records, etc.
By following these measures one can guarantee maximum efficiency when assessing vendors on GeM portal.
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The GeMTech PARAS Team
