Canteen Stores Department takes advantage of e-Commerce benefits

To date, CSD has successfully participated in 44 auctions and tenders, with a total volume of more than $4.1m.

CSD has also signed an agreement with Tejari Pakistan to switch over to an online procurement system. The agreement was signed by Major Mr. Abdul Hafiz, Director - Purchase and Supply of CSD, and Shehzad Shabbir Dahar, Director of Operations for Tejari, Pakistan.

CSD's primary focus is on providing goods and services to active and retired armed forces personnel. CSD currently operates a network of 99 stores, five fuel stations and four warehouses throughout Pakistan, and its annual procurement turnover is about PKR8bn ($98.5m).

"Tejari is helping us to explore the market for cost effective solutions at a very high speed while maintaining the transparency of procurement processes with minimized human intervention,"

commented Retired Brigadier Mr. Tariq Moeen Nawaz, Managing Director of CSD.

He adds, "The conventional procurement system has been abolished after our conversion to online procurement as we feel that the new system is much more efficient."

During 2008, CSD successfully completed purchase tenders for bulk quantities of grocery items, rice, stationary and special raw materials for their Poly Plant. One of their largest grocery items tenders was initiated in April 2008 and closed at the end of June of 2008 after three online negotiation rounds.

The initial tender was followed by samples testing and additional negotiations up to the point of placing the procurement order with the suppliers. This online tender was especially beneficial to CSD's procurement process since it involved greater supplier participation, increased transparency and minimal human intervention.

For 2009, CSD is considering running even more online auctions and tenders for food, household and toiletry products. Furthermore, they remain open to online business opportunities nationally and globally.

"We established an e-procurement section comprised of four persons in CSD to run auctions via Tejari's marketplace. Educating suppliers requires considerable effort and there is room for work and improvement in future," observes Mr. Tariq Moeen Nawaz of CSD.

He goes on to say, "But all our efforts returned to us with fruitful results. We enhanced our supplier database and involved international organizations in our tenders and auctions. We recommend to all new suppliers and buyers who are considering e-Commerce to start today with at least a one year subscription to Tejari's services to experience all the benefits of e-Commerce."