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Efficient procurement for a nation

21st July 2017

Efficient procurement today, is an integral part of any successful organisation. The first part of efficient procurement is having a pool of business ready suppliers, whom the procurement department can rely on for purchase of products and services offered

The challenge generally faced by a procurement official, is outdated or sometimes redundant information of registered suppliers. Working in this pool of uncertain data, normally leads to unproductive man-hours of work.

Another challenge or risk that procurement divisions face could be that of supplier monopoly, a situation where they are forced to deal with a long time existing pool of suppliers.

Business Gateways International, an Omani Company based in the Sultanate of Oman [Middle East] handling National Level ITES initiatives, has successfully launched the Joint Supplier Registration System (JSRS) on its flagship portal www.businessgateways.com. The JSRS is an incountry value (ICV) initiative of Oman’s Ministry of Oil and Gas and its oil and gas operators, and since July 2014 has successfully addressed these challenges and more.

There are 19 oil and gas operators in Oman today. They are: the Petroleum Development Oman (PDO), BP, CCED, DNO, OXY, Daleel Petroleum, ORPIC, Oman Oil Exploration and Production (OOCEP), MOL Group, MEDCO Energi, Oman LNG, Masairah Oil Ltd, Hydrocarbon Finder, Qarat Al Milh Petroleum, Oman Lasso E&P, PetroGas, Petrotel, ARA Petroleum and OGC.

Prior introduction of the JSRS in 2014, the oil & gas operators of Oman faced multiple challenges while addressing their procurement needs. Each operator owned and had to keep current, the data of his specific set of suppliers. And ultimately at a country level, it resulted in independent islands of same data being maintained by independent entities giving rise to massive duplication of effort, ultimately ending in large amount of redundant data for the end user.

From the supplier’s point of view, he had to first register with an operator and then keep updating his profile there. This work had to be duplicated with all operators, which by itself was a dedicated task. Owing to its cumbersome nature, the supplier registered only with certain operators thus missing out on opportunities from others. 

The solution was a common supplier pool where each supplier updated his information (or rather was alerted to update his information) to keep it current. A mechanism was needed, where each operator could reach out and select the suppliers as per his requirements to propagate his daily RFXs.

The JSRS of Oman precisely did that. It worked on the principle of common sharing. Advanced technology ensured all suppliers and operators connected to the JSRS could keep current and ahead of their requirements.

To a supplier, the JSRS is an easy single window registration and certification mechanism. The registration process of suppliers was kept simple. The supplier registers online at www.businessgateways.com, pays the fee and then submits his documents for validation. After due validation, the supplier is certified and then he automatically becomes visible to all the Operators during their search for products or services that he is validated for.

To an operator, all he must do is conduct a search of the JSRS using the Biz Search, a powerful search tool, to come up with credibility verified suppliers who can fit his product / service requirement bill at that moment.

The JSRS is also a monitoring tool, in that when a license or registration submitted by the supplier expires, the supplier is alerted to renew it. Timely renewal of such documents, ensure the supplier stays visible to the operator and remains eligible for his procurement needs.

And this, to the operator means, he is connecting to a supplier whose credentials are current and business ready. Thus, saving huge amounts of time when dealing with redundant data and promoting efficiency.

Now, when such a colony of credibility verified suppliers are mounted on a common platform, it is only prudent that they are also seen by their fellow suppliers as much as they are seen by the operators or buyers. The
National Business Platform which is an entry layer to the JSRS does just that.

The National Business Framework (NBF) is a connectivity mechanism where users in an organisation can connect with each other. Organisations can then individually connect with each other in any part of the world. Add to this governmental agencies, ministries, international embassies, and service providers who are accessible to companies at any point of this. The NBF is a full-fledged ecosystem that drives business and business partnerships at all levels.

The NBF+ JSRS mechanism is such a simple and efficient one, that in no time, it has become a national procurement platform of a whole country – The Sultanate of Oman. 

Today the JSRS is expanding from the oil and gas industry to serve all the industries of Oman.

Further information: Business Gateways (www.businessgateways.com)