Motives behind making purchases on GeM and is it a financially advantageous choice

The GeM portal offers numerous benefits to buyers seeking to acquire goods and services for government establishments. This user-friendly platform enables buyers to easily create bids and make purchases directly from sellers, akin to an e-commerce platform, at competitive prices. The portal has been integrated with the Central Public Procurement Portal (CPPP), resulting in a Unified Procurement System. This system provides users the opportunity to explore government tenders, including those from various states like e-procurement Telangana tenders, Karnataka tenders and many state government tenders.

The Government eMarketplace (GeM) portal serves as a platform for government departments, ministries, and agencies to procure goods as registered buyers within the marketplace. More than 50,000 government establishments have joined as buyers on the GeM portal after recognising its advantages. The primary reasons for government establishments to buy on GeM are streamlined digital procurement processes and quality assurance.

GeM operates as a technology-driven platform, transforming procurement into a fully digital process. This platform links government institutions with sellers across the nation, ensuring access to quality products at competitive rates. There are several other advantages offered by the GeM portal for buyers, which will be explored in this article.

Why should government establishments procure products/services on GeM?

Here are ten compelling reasons why they should consider sourcing their requirements from the Government e-Marketplace portal:

1. Extensive array of sellers

GeM showcases a diverse range of businesses from all corners of the country. Small and Medium Enterprises (MSMEs), large Indian corporations, and even multinational entities operate as sellers on the platform. Many sellers possess a GeM rating, signifying that their products/services have been verified.

These sellers have undergone vendor assessment, which evaluates their technical and financial capacities, as well as their experience, including manufacturing and testing facilities, and quality. Vendor assessment also influences the quality of the offered products or services. With sellers competing for government tenders on the GeM portal, buyers can expect competitive prices and higher-quality offerings.

2. Wide assortment of products

The GeM portal encompasses over 10,000 categories and 4.8 million products. Registered sellers can upload their entire product and service range on the portal. These products are accompanied by detailed specifications, as sellers are required to complete a template outlining the product specifications. This ensures greater clarity regarding the listed products for buyers.

Additionally, GeM equips buyers with tools to assess the reasonableness of quoted prices by sellers. This includes price comparisons across other e-commerce platforms, discounts compared to Maximum Retail Prices (MRPs), the last purchase price on GeM, and recent transaction prices on GeM for similar items.

3. User-friendly interface

The GeM portal’s core objective is to enhance convenience in public procurement. Its dashboard is designed for easy navigation and comprehension. Users can monitor supplies, payments, and open bids through the dashboard. Even individuals less familiar with technology can quickly learn to utilise the portal. The website is well-organised, presenting active bids, contract searches, category exploration, and more in a structured manner on the homepage.

4. Registration at no cost

Government entities interested in procuring from GeM must have a GeM registration. Buyer registration on the platform is free of charge.

Buyers and sellers follow distinct registration processes. Clicking on the signup option on the homepage leads to two choices: ‘Buyer Organisation’ and ‘Seller’. Opting for ‘Buyer Organisation’ prompts the selection of ‘Head of Organisation/Primary User’ or ‘Verifying Authority’. This directs users to the registration form, which must be completed and submitted along with the specified supporting documents. Required documents include a PAN card, Aadhaar card, organisation’s registration certificate, additional identity and address proofs, and a government email ending with ‘gov.in’.

5. Fully digital bidding process

When an establishment requires specific items, users can log into the GeM portal and initiate a bid. This involves completing a template to list the requirements. The entire process, from bid creation to the announcement of the winning bid, is conducted online, eliminating the need for paper documentation.

6. Three buying modes

GeM offers three purchasing modes for buyer organisations:

a. Direct Purchase: Buyers can procure products directly from available sellers on GeM, provided they meet quality, specification, and delivery requirements. This mode applies to low-value transactions up to ₹25,000, allowing buyers to place orders by searching for the required product and clicking ‘Place Order’.

b. Direct Purchase with L1: This mode pertains to mid-value transactions between ₹25,000 and ₹500,000. Buyers can compare various sellers on the platform and select one meeting the necessary quality, specifications, and delivery timeframe. A comparison must involve at least three different sellers. The buyer can then proceed to buy from the chosen seller.

c. e-Bid/RA (Reverse Auction): This mode enables buyers to conduct electronic auctions for goods and services on the platform. Buyers can customise bids by selecting specifications from provided filters, and further adjust terms and conditions at a later stage.

7. Swift bidding and delivery timelines

Buyers can swiftly create and publish bids on GeM, provided they have the necessary specifications and requirements at hand. For faster delivery, buyers can indicate the desired delivery duration. During the pandemic, GeM shortened bid and delivery periods for COVID-19-related products like oxygen kits, cylinders, and concentrators.

8. Automatic contract generation

The GeM platform can automatically generate contracts based on specified technical parameters and buyer-provided details such as delivery period and terms. If needed, buyers can edit auto-populated terms and conditions. Contract updates, version control, and an audit trail are also possible.

9. Responsive customer support

The GeM portal includes a 24/7 chatbot named GeMmy, available to address queries regarding registration, ticket raising, and product/service information. Additionally, users can connect through social media platforms such as Facebook, Twitter, LinkedIn, YouTube, and Koo. GeM’s customer support offers prompt responses and efficient resolutions.

10. Buyer incentives

The government has introduced a program to incentivise buyers registered on the GeM portal. Noteworthy orders made by buyers receive recognition on the GeM platform, along with digital certificates, and are highlighted on social media.

Conclusion

GeM aims for optimal efficiency in public procurement through its online system. The portal’s features underscore the government’s efforts to simplify the bidding process, introducing a direct purchase feature akin to e-commerce platforms, and ultimately facilitating seamless public procurement.

Disclaimer: Please be aware that the information presented in this article may be based on available knowledge and resources at the time of writing, and may not be comprehensive or current. It is advisable for readers to independently verify the details before making any decisions based on the information provided.