Transforming Public Procurement Through Digital Innovation

Introduction

With the increasing role of technology, there has been a remarkable shift in the manner in which government organisations approach procurement. In today’s dynamic landscape, public procurement is evolving like never before, with digital transformation at the heart of this change.

New technologies are rapidly transforming procurement processes, turning traditional, manual procedures into streamlined, data-driven operations. The use of emerging technologies like big data, AI and machine learning are making the digital transformation of public procurement portals faster, more transparent, and cost-effective. This transformation is reshaping how goods and services are sourced for government buyers, contracts are managed, and supply chains operate.

India, too, is witnessing this paradigm shift. Government e Marketplace (GeM), the national procurement portal has emerged as the second-largest in the world by order volume, second only to South Korea’s KONEPS, which has had a considerable head start since its establishment in 1996.

With flagship initiatives such as Digital India, the country is progressing towards a tech-empowered economy. Among the many success stories of digitalisation, GeM, India’s largest e-marketplace for government buyers, stands out for redefining the way government contract tenders are managed in India.

Let’s learn about how GeM is harnessing digital innovation to establish a streamlined ecosystem for public procurement in India.

How GeM Became a Game-Changer in Public Procurement

Launched in 2016, Government e Marketplace, also known as GeM, was introduced to digitalise and streamline the procurement process in India. It is India’s largest e-marketplace for government buyers, facilitating online procurement of common-use goods and services.

The platform offers a secure and transparent process, providing access to a wide range of verified online tenders, from both Central Government & State Government, government organisations, agencies, departments and Public Sector Undertakings (PSUs) across India. It has an end-to-end digital infrastructure, enabling pan-India sellers & service providers to easily participate in government e-tendering from anywhere at any time and get a chance to sell directly to 1.6 Lakh + government buyers.

GeM is leveraging technology to create a robust, efficient, and transparent platform. With more than 22.5 Lakhs active sellers and service providers, GeM has become India’s largest e-procurement platform for public procurement.Learn more about GeM portal here: https://gem.gov.in/

Evolution of the GeM portal: Technological Trends

GeM has always been at the forefront of digital innovation, embracing cutting-edge technology to create a seamless and efficient user experience. As a platform designed to streamline government procurement, GeM continuously evolves to meet the dynamic needs of its diverse user base. At the heart of this transformation is GeM’s commitment to ensuring accessibility and inclusivity for all stakeholders.

Let’s look at some key innovations:

End-to-End Digital Infrastructure

GeM provides a fully digital public procurement system, eliminating the need for manual processes and paperwork. It is a completely cashless and paperless e-procurement portal, ensuring that sellers and service providers can participate in government tenders and receive payments online from anywhere. For instance, sellers can access and bid on government tenders in Delhi, no matter where they are based in India, spurring hyper-local businesses across the country.

The digitalisation of the portal provides an end-to-end digital infrastructure where the bid details are published for up to 6 months to all stakeholders with access to a digital dashboard, which can be critical for monitoring the status of government tenders and evaluating the progress of ongoing procurement activities.

Other sellers who do not fall under the particular category can also view these opportunities by logging into their accounts, further ensuring transparency in government spending on procurement.

24/7 AI Chatbot Assistance

GeM is enhancing its digital experience with the introduction of GeMAI — an AI-powered chatbot offering 24/7 assistance to users. By crawling the portal for answers, GeMAI provides intelligent, efficient, and intuitive guidance, helping users navigate the platform’s unique features and resolve queries in real time. This innovation is set to further simplify procurement processes, empowering users with the information they need, whenever they need it.

Augmented Reality (AR)

As part of its commitment to maintain its position as a pioneer of digital transformation in public procurement, GeM integrated Augmented Reality (AR) into its platform to enhance the procurement experience in 2024.

In partnership with a third-party provider, GeM has deployed the use of QR codes for 300 products.

Through this innovative approach, buyers will be able to scan the QR codes featured on the GeM website and view 3D models of products in AR using their mobile devices. This feature allows users to interact with items in an entirely new way by scaling, zooming, and panning 3D models, as well as placing them within their real-world environment using the camera view on their device.

Impact of GeM on India’s Socio-Economic Fabric

By adopting these cutting-edge technologies, GeM is enabling both government buyers and sellers / service providers, particularly underserved groups, to navigate the procurement system with greater ease, creating a user-friendly ecosystem.

Through its digital-first approach, GeM continues to drive change for India’s marginalised and hyperlocal sellers in the following ways:

Level Playing Field: GeM has played a pivotal role in creating equal opportunities for all sellers, particularly those from marginalised sectors. Through its platform, Micro, Small, and Medium Enterprises (MSEs), Women-led businesses, and Startups can directly sell to government buyers without any intermediaries, thereby democratising access to the vast government procurement market.

This shift has not only enhanced market visibility for such sellers but has also empowered them to scale and thrive in a competitive environment. Currently, MSEs have contributed to nearly 40% of the total order value on GeM.

Nurturing Local and Hyper-Local Economic Ecosystems: GeM fosters self-reliance by empowering India’s hyper-local economy through its robust digital infrastructure. The platform enables even rural and local manufacturers to access a nationwide marketplace, bridging the gap between small businesses and large-scale government procurement.

With GeM, sellers from any part of the country, including remote villages, can seamlessly participate in government tenders in Delhi and beyond. By eliminating geographical barriers and providing equal opportunities, GeM ensures that local enterprises thrive, contributing to regional economic growth and a more self-sufficient India.

Capacity-building for Sellers: GeM understands the importance of seller empowerment and offers various resources to help them navigate the platform successfully. Through a range of online interactive and multilingual training modules and exclusive online and offline workshops, GeM educates sellers about the platform’s features, enabling them to leverage its full potential.

Through its multilingual and digital interactive courses, GeM ensures sellers can access the information they need in their preferred language from anywhere in India.

Head over to https://elearning.gem.gov.in/ to sign up to these courses!

A Promising Future: The Roadmap Ahead

By fostering a more inclusive, accessible, and efficient procurement ecosystem, GeM is setting the stage for the future of digital procurement, where processes are seamless, transactions are transparent, and sellers of all sizes and backgrounds can compete on a level playing field. This will create a more efficient and dynamic marketplace, aligning perfectly with global trends towards digital-first, data-driven procurement systems.

The future of public procurement is here, and GeM is at the forefront of this revolution. By continuing to innovate and refine its processes, GeM is ensuring that e-procurement in India is accessible, efficient, and transparent for all. As more businesses engage with this platform, the shift towards a fully digital procurement ecosystem will undoubtedly transform how government contracts are awarded, benefiting both sellers and government buyers alike.