Backing the call of the Government, Kelang Multi terminal, the port operator of Westport Malaysia, has had a head start amongst the Malaysian ports to leverage the advances of technology to promote transparency and good governance by launching its own electronic procurement and bidding system as early as 2003.

Westport's e-Procurement and e-Bidding has proven to be a solution for improved administration efficiency, reduction in costs and greater transparency. It has also given the port an integrated business-to-business (B2B) platform for a speedier and reliable transaction. Leveraging on this technology, the port aims at increasing productivity and efficacy of buying, sourcing, ordering, logistics tracking and payment processes

Currently the electronic and wed based bidding via Westport's e-bidding allows it to meet a global supply base and to receive bids or tenders from both local and international players. E - bidding is designed as a user-friendly system that just needs a controlled password from users and buyers to get into the system. Another attractive feature of e-bidding is its full electronic audit trail archive that allows one to able to view every bid that has been submitted, by whom and when upon completion of the bid. The inclusion of the bidding history paves the way for a bidding process that is fair and ethical. All sourcing decisions made through this technology caters for total transparency on every ringgit sourced.

Adopting this new technology, Westport has made huge savings as much as RM 75 million in the last three years. A total of RM200 million worth of bids have been carried out, with maximum savings of 60 per cent achieved. In addition to savings in cost, there has also been savings in time spent as the technology streamlines the procurement and accounts payable processes which has significantly reduced by 76 per cent. Whereas cycle time for other processes from a user raising a requisition, gaining budget approval, and the purchase order becoming visible to the supplier has become more swift moving from days to hours and at times within minutes.

The port, which has recently completed its major expansion works, has found the electronic bidding and procurement to be definite advantage. According the Westport's head of technical Service, En. Ahmad Damanhury "since the launching of e-biding, we have had a number of multi-million ringgit projects which successfully bid online. In fact some of the recent large scale projects that we have undertaken has saved us a considerable amount of money which was close to RM 5 million,"

"As more companies ride of the digital economy and e-commerce, electronic sourcing will soon become a common mode of transaction. Consequently this would increase the possibility of lowering the cost floor of a particular market, which in turn would produce lean and mean pricing, ensure supplier profitability. Thus organizations such as Westport could use this technology as their competitive edge against other ports who have not electronic with their procurement activities " says IT solutions provider Privasia, who has developed the e-procurement and bidding technology.

In a complex and diverse organization such as Westport, it essential that every ringgit spent is aggregated, where possible, into enterprise wide contracts that gained the maximum discount through consolidating into fewer suppliers. Thus the usage of e-bidding allows the company to source the contracts centrally and then making it available on the desktops of all users via e-procurement and e-catalogues.

Meanwhile, the port's supplier base is encouraged to become e-enable taking on the responsibility of creating and maintaining their catalogues, and submitting business forms such as DOs and Invoices via Web EDI.

Riding on the digital revolution, Westport's takes advantage of the simplicity and flexibility of e-commerce that is shaping the face of business world over. Guaranteeing an equal opportunity to all parties via its e-procurement and e-bidding, Westport continues to ensures that there is open and fair competition, and, most importantly, maintains the highest ethical standards in all transactions.

The NST, 12.12.2005