Most commercial eProcurement platforms don't event graze the surface of the requirements listed in the "Procurement Evolution". They represent the basic level – the documentation exchange broker. It allows customers and bidders download or upload the bidding documents to the same repository. Comparing to manual process, the big advantage of such DPP is that the documents are always up-to-date; customers and bidders being immediately notified of any changes. The bidding lifecycle is well orchestrated and timed.
To move this technology further we need to solve the problem already encountered in PLM – Product Lifecycle Management – to make it aware of the product specifics.
Undoubtedly, Digital Procurement Platform (DPP) development shall be on the customer side, where uncertainty is the highest regarding the requirements and scope for product or service, and the bidder history. (Bidders always offer what they know best.) So the customers risk mitigation through process automation is the next milestone in the DPP evolution.
True DPP allows dialog between the customer and the supplier. Instead of the files exchange, it implements the data exchange. Unlike files, data may be instantly validated for completeness or deviations from the requested ones. This solves the bids price-quality conundrum. Bidders believe the lower-price bid trumps the numerous micro-deviations from the tender requirements. It is very common in the project engineering.
DPP for mega-projects includes two distinct parts – RFQ processing and Purchase Order Processing. Both are overloaded with the bespoke product specifics which are not accounted for by generic procurement software available in the market.
The RFQ processing framework developed by crenger.com makes RFQ submission online. This framework includes the following components.
- Product specification compiler extracting data from P&ID and the project documentation
- Web RFQ search engine
- Web RFQ documentation aggregator (for download and off-line processing)
- Web documentation processor (warranties, purchase terms and conditions, non-disclosure agreement)
- Web product technical specification editor (forms, drawings)
- Web commercial data editor (forms, cancellation charges, payments schedule, warranties, manufacturing schedule)
- Web spare parts editor
- Web inspections and tests editor
- Web quotation data aggregator and viewer
- User Interface for linking purchase packages to payment schemes
- User Interface for linking purchase packages to project documentation: specifications, standards, procedures, drawings, etc.
- User Interface with OEM offers progress tracking
- User Interface with quoted products comparison
- Algorithms for the best product automatic selection
- Optimization algorithms for the purchase orders merging and splitting
- Web OEM register
- Web OEM survey processor
- Web OEM references editor
This video shows how online RFQ submission is done.