With a view to bringing in more efficiency in its procurement process, Bharat Heavy Electricals Ltd is seeking a solutions provider to launch eprocurement on Application Service Provider (ASP) model. The Central PSU is in the process of seeking technocommercial bids from prospective entities. The prospective solution provider is expected to set up an electronic procurement platform with the objective of automating the entire procurement process in BHEL, in a phased manner.

The e-procurement solution will initially be implemented at the Tiruchirappalli unit in Tamil Nadu, to be extended across all other units subsequently. The e-procurement solution is aimed at reducing effort and time required in the procurement process. It is also seen as a means to maximize the integration in the process ranging from "indent" to "vendor payment." The e-mode is also expected to bring in more transparency to the existing procurement system.

According to information available, the three-year contract will involve a business volume of 8,000 events— 1,000 events in the first, 2,000 in the second and 5,000 in the third year. The major units of BHEL where eprocurement will ultimately be established include Bangalore, Bhopal, Haridwar, Ranipet, Noida and Trichy.