The KSRTC has introduced electronic tendering since October 2003, in the tendering procedures for all its purchases in order to achieve simplification of procedures, greater transparency, better quality of work, fair competition, automation and adapting IT as the growth engine. The e-tendering procedure complies with the provisions of the Transparency Act and has been approved by the Government of Karnataka, IT Department.

The objective of KSRTC’s e-procurement / e-tendering initiative is to develop a co-coordinated approach to attain leading procurement practices across its operations. In order to achieve the objective, the KSRTC is utilizing new technologies and applications to create a suitable e-procurement solution that meets the requirements of various regions. The key objectives of the e-Procurement solutions are:

• Anywhere any time citizen service: The Tenderer need not visit KSRTC Offices for procuring and submission of tender document as the tender purchasing, opening and evaluation is online.

• Demand aggregation – The ability to aggregate KSRTC demand to leverage buying power with the supply market.

• Reduced inventory costs – Improved planning and management of inventory leading to lower levels of inventory.

• Internal arbitrage – Ensuring consistency in services cost at the best price at item level.

• Consistent and sustainable vendor development – Enabling pre-qualified vendors the opportunity to access the system and bid.

• Transactional effectiveness – Eliminating or automating non-value adding steps within the procurement to enable efficient and effective processes.

• Total cost of ownership – Understanding the supply chain and life cycle costs in procurement to establish value adding supply relationships leading to reduced cost of doing business for both government and industry.

• Effective tender processing - Use of different types of e-tendering means to get better benefits.

• Open platform – Level playing field and fair competitive platform for the suppliers.