Global Procurement Summit 2020 - Background Note
Last few decades have seen evolution of Procurement from transaction to strategy. The role of procurement in top and bottom lines of private enterprises and in service delivery by the public sector is increasingly being recognized. With first signs of economic slowdown appearing on horizon, any savings due to better procurement practices will be very important. Use of technology in procurement is an emerging phenomenon but is rapidly catching up not just in private sector but also in government procurement.
India’s aspiration to become US$ 5 trillion economy will require mammoth creation of new infrastructure. Governments are looking at Public–Private Partnerships (PPPs) with renewed interest, not just for bringing financing from private sector but also innovation and efficiency. Also the focus is shifting from resolution of disputes in large and complex contracts to avoidance through proactive management of contracts.
All India Management Association, an apex body of management profession in India, join hands with the Ministry of Finance and Ministry of Electronics and Information Technology, the Government of India, and with the World Bank and other international/national partners for bringing together the most senior and regional procurement community to examine opportunities and challenges faced in Procurement during 21st Century.
Targeting senior officers engaged in public procurement at central and state public entities and the critical bidding communities represented by manufacturers, suppliers and contractors and consultants, the key objectives of Global Procurement Summit 2020 are to –
- Create new Procurement Value Proposition using Technology
- Establish a concrete role of Procurement in corporate Strategy
- Raising the bar of Procurement function for Government & Business
- Familiarize with procurement under PPPs
- Apprising with the steps to neutralize the disputes which may arise during the contracts
- Understanding and minimizing the roadblocks faced in this revolutionary phase
Organized on February 10-11, 2020 at New Delhi, India, GPS 2020 would bring in experts in the area of procurement from and around the World to deliberate and share their knowledge in the following six themes-
- Role of Procurement in Enhancing Economic Growth
- Growth & Emergence of Public Private Partnership (PPP)
- Professionalization of Procurement
- Dispute Avoidance and Resolution in Contracts
- Technology in Procurement: e-procurement, e-RA, AI, Big Data, IoT and Robotics
- Sustainable Procurement: A Way Forward
During the sessions, the above mentioned themes will be discussed and the speakers will share the focus area of top performing procurement teams, along with the challenges faced by them in their procurement process. Recommendations coming out of the session discussions will act as stepping stone for the policy makers which will provide insight into the current challenges procurement professional face and the upcoming opportunities they foresee from the industry and the Government for the 21st Century.
On day one, the session on “Role of Procurement in Enhancing Economic Growth”, stresses on the importance of Public Procurement for growth trajectory of a country. This session will opportunity to hear from Bangladesh their journey on procurement reforms and its impact on their economy. Initiatives of Government of India will also be discussed in this session.
While exploring various avenues, Public-Private Partnerships have been seen as an important form of procurement for the delivery of services across sectors in several emerging markets globally. However, developing and bidding in PPP projects continue to be challenging. The session on “Growth & Emergence of Public Private Partnership (PPP)” attempts to highlight PPP experience from South Asia as well as from other countries across the World. Policy framework in India and Challenges and Opportunities for PPP projects in Highway sector in India will also be discussed.
This session is followed by the session on “Professionalization of Procurement”, which covers the importance of capacity building and implementation of capacity development in the area of Procurement. The speakers in this session deliberate upon moving from Compliance to Performance as well as how to develop and position procurement as professional stream.
Contractual disputes is an area of concern for public procurement and loopholes in contracts tend to delay projects and dilute public service delivery. On day two, the session on “• Dispute Avoidance and Resolution in Contracts”, looks at the different alternate dispute resolution techniques like Mediation, Dispute Resolution Boards and Arbitration including a presentation from Singapore. The session will also endeavor to showcase the importance of commercial courts for contractual dispute resolution.
Given the size and complexity of the government, there will always be room for improvement in procurement. However, technological advances now offer a great opportunity to make public procurement more open, transparent and accountable. The session on “Technology in Procurement: e-procurement, e-RA, AI, Big Data, IoT and Robotics”, focusses on digital business enabled by digital procurement, technology in Procurement (Machine Learning (ML), data analytics and block chain , technology disruptions and their transformation effect on value chain etc.
Procurement also has a responsibility beyond the bottom line. It can be an instrument of effecting social and environmental change. A bias towards sustainable and inclusive suppliers can achieve more change than the usual CSR activities. The last session of the day on “Sustainable Procurement: A Way Forward”, concentrates on how sustainable procurement has the potential to transform market. Discussion will also happen on how balancing of socio, economic and environmental considerations is done by achieving sustainability in procurement.
There is a great need for organizations to equip their procurement officers with the knowledge and skills related to e-tendering, online auctions and digital vendor management. AIMA has been contributing towards Professionalization of Procurement by conducting training programs, offering various Diplomas and Certificate Programs. Recognizing the importance of building capacity in public procurement, AIMA with the technical support of the World Bank has been successfully offering Professional Diploma in Public Procurement and Certificate program in Contract Dispute Resolution across India and overseas. There is also plan to offer a Certificate Programme in PPP in future.
GPS 2020 brings in international and national experts from over 8 to 10 countries and is expected to attract over 300 participants during the event. Initiating a serious engagement between policy makers, practioners from public and private sector as well as international development organizations, the Summit will contribute as the annual think tank and another steps towards the professionalization of public procurement function.