An Assessment on suitability of e-procurement for Sri Lanka Railways

Abstract

The level of maintenance of locomotives and other engineering systems of the Sri Lanka Railways : SLR does not meet, the system availability levels, demanded by the train operation and the problem persists even after receiving new rolling stock in recent years. This has been revealed by Railway Performance Reports. One of the main reasons is the non-availability of spare parts and other maintenance items, at the time when they are really required. The railway procurement process is not geared to cater to the requirements of the maintenance departments of SLR. The research was designed, to identify the current problems of railway procurements, including problems experienced by maintenance departments, suppliers and by the procurement (stores) department. It examines how other similar organisations have overcome such problems through application of technology. The existing railway procurement process was deeply studied while studying the procurement processes of other Sri Lankan Organisations in the same manner. Related literature review revealed that carrying out organisational procurements electronically brings many advantages and the current procurement problems of Sri Lanka Railways ' SLR ' can be overcome through implementation of electronic procurement within railways. The survey identified fourteen problem faced by the three groups of stakeholders of the railway procurements. Furthermore, it was found that the other Sri Lankan Organisations who have implemented electronic procurement, also have had similar problems and have overcome those problems through e- P implementations. Based on the survey findings and as per literature review, it is recommended to implement electronic procurement within Sri Lanka Railways and a phased implementation starting from Restricted e- Tendering is recommended. Furthermore, a few improvements and reforms such as, classification of procuring items, with the intension of diversifying procurement strategies and formation of Procurement Circles to expedite the current processes, are recommended.