1. Gerald Mugabi, Head of Procurement
Technological Innovation in Public Procurement - a case for NSSF Uganda
Gerald Mugabi, Head of Procurement

2. Background
Technology is quickly reshaping every aspect of the way we do business
It is a catalyst for change as well as an enabler across regions, organizations, social networks and the procurement is no exception
In Africa, South Africa, Mauritius, Namibia, Nigeria, Rwanda, Ethiopia, Ghana and Kenya have made progress in use of E-procurement
In Uganda, we are soon concluding the deal with the vendor, some organizations have started automating their procurement processes, among them is NSSF Uganda

3. Procurement & Business Strategy
Innovations
NSSF Strategic Objectives
PERFORMANCE MESURES (TIME, COST,QUALITY)
PROCESS AUTOMATION
Strategic Initiatives
Annual Budget
Procurement Plan
’Despite the importance of the public procurement market, little effort has been made to systematically and consistently collect reliable statics’’… World Bank Report 2017

4. Efficiency on the other hand is the ability for the procurement system to produce desired results without wastage.
Effectiveness of the procurement process is its ability to consistently deliver results wanted and in line with the strategic objectives of the business or Govt.
Technological innovations improve the effectiveness and efficiency of public procurement system.

5. The past The procurement data was scattered, erratic, less analyzed
Approvers were backdating documents and it was hard to trace source of delays and process TAT
Very hectic audits, due to massive use of hard copies
Accurate reporting, both qualitatively and quantitatively (based on statistics) was a dream

6. The Manual System: 2014
Procurement Budget monitoring was manual and complex
Delays in the procurement process was common; shifting blames was the order of the day
End users could not track progress of their procurement requirements
It required weekly updates to the Accounting Officer on progress of strategic projects
Published by PPDA as Unsatisfactory entity in 2014

7. Efficiency Initiatives
Designed the system to eliminate un necessary processes
Measurement of time taken to take action,
Allowed delegation of authority by approvers in the system
Measure departmental performance
Allow Process visibility end to end by end users
Ease access to information for decision making
Online notifications to prompt action and escalation in case of delayed action
Allow Data analytics in order to aggregate,
process heterogeneous sources data into simple
dashboards

8. Results
Reduced cycle time,.. allowed remote decisions and quick approval
Procurement data utilization….big data analytics
Eased reporting and reduces human errors
Budget Control, monitoring and Risk management was eased
Reduced time wastage-turning around papers- Increases staff productivity
Eased Audit tracking, easy to identify process ‘black spots’
Eased data retrieval
Increased end user satisfaction –Derived satisfaction from
Stakeholders engagement, satisfaction
Increased process visibility and transparency
Increased Staff productivity…

9. Eased Data Analytics: ABC Model
Category Management-ABC Model
Classification
No.
Value (Bln Shs)
%ge A 31
214.5
94.7 B 88
11.5
5.1 C
120
0.5
0.2
Total
239
226.5
100.0
WHAT TAKES YOUR TIME SHOULD BE WORTH IT

10. & AUTO BUDGET VERIFICATION.
Lean Process flow
INITIATION
& AUTO BUDGET VERIFICATION.
PDU
REQUESTER
HOD APPROVALS
AO APPROVAL

11. Over the past three years, we’ve recorded a tremendous performance improvement in the procurement process.
This has been attributed to three major Initiatives:
1) Focused on Increasing efficiency and effectiveness of the procurement processes
2) Increase accuracy of data, automat reports
3) Increase end user confidence and process visibility- through process tracking and automatic notifications on progress
90.2%
56%

12. FUTURE PLANS – icloud.
Remote access
NSSF SERVER
NSSF DB
DB- Database
Mobile Approvals & Notifications

13. GO E-PAYMENT

14. Lessons learnt
Automation is an enabler, its effectiveness depend on design input- The system will do what you command it to do
E-procurement initiatives should be aligned to the strategic objective of the nation or organization. And in any case it should reduce the costs, time and ensure quality deliveries
Uptime for internet connectivity is essential for system success
It takes time to get confidence in electronic system in Africa. Security of the system should be prioritized
Usually there are gaps between expected results and realized benefits –change management should address the gaps

15. Lessons…. Successful innovation in IT depends on whether
the existing policies (laws),
Management philosophy are synchronized with strategic objective
Mg’t
Policy
Technology
The Vision of EAC is to attain a prosperous, competitive, secure & Politically united EA-One People one Destination

16. Conclusion
Technological innovations are catalysts to enhance procurement productivity. A well designed E- Procurement solution should promote efficiency, effectiveness and output. This should be through reduced turnaround time, access to data, easy monitoring of projects and enhanced transparency.
To realize the benefits, it is necessary to harmonies the strategic goals of the organization or Gov’t, policies and management philosophy. Digitalization requires developing new value propositions, meeting new Govt or organizational needs. The people we serve are desperately looking for delivery of service. The opportunities of the global digital revolution should enable us serve the people of East Africa better and prosper our economies.

17. END AND THANK YOU
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