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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal

E-Tendering System Automated Manual System of Soc Salaheddin M. A. Heddad (salah4salah@gmail.com) University Of Tun Abdul Razak

ABSTRACT E-tendering system is one method of e-procurement which could consider as a branch of Ecommerce. E-tender used globally as effective purchasing method, in this project argues the relations between e-tendering and purchasing policy of the organization, the matter which made standardized e-tender system not effective process. The project examining e-commerce in Libyan oil industries(LOI), justifying the most obstacles and automating manual tender system, describe main functions of e-tendering system documented, formulate and developing etendering transaction and submission system (ETTS), ETTS is a prototype, aiming to contribute enrich e-commerce and prevalence e-tendering in LOI. The ETTS providing sample solution for reducing purchasing time and cost in 4 effective modules. These modules derived from SOC tender policy, which selected as sample of LOI.
Keywords: E-Tenders , LOI,SOC,ETTS, E-commerce

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Vol.1, No.1, January 2013 pp.01-07 ISSN : 2306-9295

JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
Introduction Government and private sector companies have become demanded to use the Internet technologies seeking its benefits thus the emergence of E-commerce. One such benefit is the tendering activities. `Tendering is an important procurement method, implemented by many companies expecting to reduce their cost and time. E-tendering is a procurement process simply conducted online. It is the carrying out of the tendering process using electronic means, such as the Internet and software applications. Benefits result from the E-tendering application is a reduction in operational cost and work efficiencies. For example, less money will be spent with suppliers but the volume or quality of goods or service will remain the same. In e-tendering less staff will be required to deliver the same level of service and the benefits are largely process efficiencies in which time are saved that results in reduced expenditure incurred during the tendering process. These savings are achieved through automation of the tender process. In the Libyan Oil Industry, Sirte Oil Company (SOC) is used as a sample in the application of design and implementation of e-Tendering web application to automate its manual tendering process. The proposed system is a web base application using e-commerce infrastructure, aim at contributing and enriching the e-commerce for the oil field industry in the Libyan. The oil industry has huge volume of procurement exchanges. E-tendering as a procurement method provides many solution such as process efficiencies, reduction of procurement cost, time and paperwork and man power efforts. E-tendering can be an invaluable tool for companys experiencing difficulties in their supply chain. Problem Background The problem background is forwarded base on arguments as follows. The study looks at handling tenders as a tedious and taxing process with endless paper documents that are currently practiced at Libyan oil industries in general and Sirte Oil Company (SOC) as it a sample of it. The process involves tender announcement, sale of tender documents, compiling bidders' submissions and supplier assessments. This is the normal process before a tender decision can be made and contracts awarded. To put an end to the tedious task, the study intends to initiate a specifically designed and developed an effective E-tendering that will be accessible over the Internet. E-commerce in Libya is still in the process of growing. The Oil industry contributes and plays a major role in the Libyan economy. Sirte Oil Company (SOC) is a government owned company. Referring to the work volume and traffic, thousands of orders are placed each year, and huge paper works commutes between different departments. In the oil field industry time is an important factor, where providing materials in a timely manner will is of the essence. The procurements workflow of SOC takes longer time to be finalized and is not cost effective, 2 to 3 months is needed to issue a purchase order while delivery takes 1 to 2 months, and as such it takes the company 3 to 5 months to receive an order under normal work practice.
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
SOC has made primary steps by placing in their website tender announcement and invitation, but has no online interaction with customers for document purchase and online payment systems. Tender activities are submitted by post or by authorized representative. With regards to the problem statement this study attempts to answer the following problems. 1. The purchasing time is not effective. 2. Current purchasing system is paper driven that effect work quality and is a slow tedious process? 3. No e-commerce system implemented 4. Lack of exchange information with vendor that affect decision making Related Works To gather information and understand this subject we made a quick view of e-commerce, eprocurement and e-tendering as it is one method of procurement. Analysis of Sirte oil Company; sample from Libyan oil sector existing systems was chosen, and study 5 different e-tendering system from deferent countries, government and private sector. E-Commerce E-commerce is a concept involving the process of sale, purchase and exchange of products and services or information using computer networks via the World Wide Web (Internet). From the perspective of internet world define electronic commerce as a trade which opens the opportunities for sale and purchase of products and services and information over the internet. What solution does e-commerce provide? E-commerce provides market expansion beyond borders with little cost and connects more consumers faster and easier. E-commerce is the platform that provides distribution of information and actual cost benefits. It reduces stocks through the use of checkout process, reduce time between actual payment time and obtain products and services time. It also reduces telecommunications costs. E-procurement E-procurement (EP) defines as the use of online technology to assist the procurement function. It is also known as a type of trading between producers and consumers, or between business associates through the use of ICT (information communication technology). Constructs of electronic procurement (EP) De Boer (2002) provides a formidable starting point to develop a multidimensional construct of EP. EP formative construct consists of all the facets of EP namely: a. Web-based ERP (Enterprise Resource Planning): Creating and approving purchasing requisitions, placing purchase orders and receiving goods, services by using a software system based on Internet technology.
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
b. c. d. e. f. E-MRO (Maintenance, Repair and Overhaul): The same as web-based ERP except that the goods and services ordered are non-product related MRO supplies. E-sourcing: Identifying new suppliers for a specific category of purchasing requirements using Internet technology. E-tendering: Sending requests for information and prices to suppliers and receiving the responses of suppliers using Internet technology. E-reverse auctioning: Using Internet technology to buy goods and services from a number of known or unknown suppliers. E-informing: Gathering and distributing purchasing information both from and to internal and external parties using Internet technology.

E-Tendering: Kirklees Metropolitan Council and iMPOWER(2003) defines E-tendering as an electronic tendering solution to facilitate the complete tendering process from the advertising of the requirement through to the placing of the contract. Before, dealing with tenders involves a lot of paper work, faxes and mailing to customers. The emergence of IT and ICT took procurement and supply chain to new heights. For example it creates document sharing based platform allowing collaborative input. Tenders could be updated or send by RRS feed and it may also be publicized on a live platform like twitter platform. All this are attempts to solve the problem by replacing paper-based tendering processes with electronically facilitated processes to save time and cost. E-Tendering composition: E-tendering system comprises to: A. E-TENDERING: PROVIDES THE EASE OF ADVERTISING REQUIREMENTS FOR MATERIALS OR SERVICES, REGISTERING SUPPLIERS, AND ISSUING OR RECEIVING TENDERS DOCUMENTS VIA THE INTERNET. IT COVERS THE PREPARATION OF AN OFFER BY A SUPPLIER IN RESPONSE TO A CALL FOR COMPETITION, AS WELL AS ITS SUBMISSION TO AND RECEIPT BY, THE CONTRACTING AUTHORITY. B. E-AWARDING: AUTOMATES THE RESPOND EVALUATION OF A TENDER BEGINNING WITH THE OPENING OF TENDERS, TENDERS EVALUATION, TENDER SELECTION AND TENDER AWARD. ALL THIS IS PUBLISHED THROUGH THE APPROPRIATE SERVICES However the e-awarding is considered as part of the notification phase which is outside the scope of this study.

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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal

Figure 1 E-tendering system comprises Reviews On E-Commerce In Libya Nowadays many companies are still far from practicing e-commerce in the Arab world in general and Libya in particular. Statistics for the Arabic region shows that about 80% of online purchases are made outside Arabic websites, because of the scarcity of Arabic sites which represent about 0.5% on the Internet. The e-commerce in Libya still in the growth stage and according to Internet World Stats; Libya is after Tunisia and Egypt according to the numbers of internet users, but Libya has the highest percentage of user growth. This rate is a good sign on the future of e-commerce in Libya when we justify the difference in population, as shown in table 2.1. Population (2009 Est.) 6,324,357 10,486,339 78,866,635 Internet Users Internet Users User Growth Dec/2000 2009 (2000-2009) 10,000 323,000 3,130.0 % 100,000 2,800,000 2,700.0 % 450,000 12,568,900 2,693.1 % Table.1 internet users in Libya, Tunisia and Egypt Users in Africa 0.5 % 4.2 % 18.7 %

Libya Tunisia Egypt

Description of SOC current system Procedurals and current system of SOC depend on the business rule described as following. Bids and tendering system Tender invitation Vendor registration Purchasing tender documentations Tender submit Processes Online, newspaper ,other channels Submit required documentations By representative with present authorizing letter, Payment by cheque or cash. In two separate sealed envelopes, stamped by the Company. 1. First envelop contains the Technical offer (1 Original + 3 Copies) and the Un-priced Commercial Tender (1 Original + 1 Copy).
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
2. Second envelop contains Commercial offer (1 Original + 1 Copy). The project title & project reference number must be written on both envelops. Company Registration, experience record, tax and financial status should be submitted with the bid documents. (0.5%) of bid price by A certified cheque. The tender winner must submit a certified cheque worth 10% of contract price, as a final insurance, within 10 days of notification of contract award returned to the contractor after one year of completing the project. Finish bid steps. Table 2 internet users in Libya, Tunisia and Egypt

Tender and bid bond Tender result and notification of contract award Done

Review On Existing Systems Reviewing current existing systems in practice will contribute more insights and important information on the application and the efficiency of e-tendering systems. The following systems are presented analyzed and compared to reach at the objectives. etenderewal es system System Access And registrations using User name & Password By using User name & Password SESCO Indian Oil Corporation security key addition with user name & password using User name & Password & licensed Certificate Advertisemen t & invitation to tender Invitation by email only Tender advertisement Available for registered user only documents Fees Online payment Not applicable Not applicable Available only through applicable Tender advertisement Available for registered user only According to tender conditions Not applicable Available Not applicable Tender advertisement Available for registered user only applicable Not applicable Use both advertisement, and direct invitations BEST Public Procurement By using User name & Password

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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
PaybillsMalaysia Bid submission Bid evaluation System Complexity System security Designing Normal Level Simple Simple Not easy to use Simple Simple Normal Level High level High Level Normal Level Online Low Online Low Online High Online Low Online Low Online Online Online Online Online

Through the researchers analysis, the most secured system is complex and not easy to use. The simple sites are more flexible and friendly usability. Obviously e-tendering systems are different from one organization to another; country to country and have different trading policies, which make standardizing e-tendering system not an easy task. also may or may not fit with others. As such, it is recommended that each company use their own system, where the cost of paying software from the market, edit or enhance software or web application system my cost nearly same price of a new system. Also from the economic and security perspective, it is better to use a new system rather than a standard system and made changes to it. This project will adopt e-tendering system for Sirte oil company (SOC) using SOC tendering policy as guidelines to design, develop and application implementation. Analysis from the comparison table of the existing systems has found that the main steps are always the same even it have different terms and steps. The research found that most of the etendering systems use these steps.

Figure 2 General Tender steps. Solution To achieve the objectives of the proposed system, the researcher analysis the proposed system, describe the system requirement and lays out the important concepts of requirement analysis, documented functional and non-functional requirements of the proposed system. As following:
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
Functional Requirements Functional requirements defined as what a system is supposed to do, in this phase the researcher gather functional requirements and behavior of the proposed system, which is may express as tasks or functions that the system is required to perform. E-tendering transactions and submission system (ETTS) can be divided into: A. Users module, which is consist of three sub modules. B. Admin module. A. User Module: I. ACCESS AND AUTHENTICATION MODULE AN AUTHENTICATION SERVICE WILL PROVIDE AND CONFIRMING REQUIRED ACCESS DETAILS IS CORRECT. THIS MODULE IS RESPONSIBLE FOR CONTROLLING VENDOR ACCESS TO THE SYSTEMS USING VALID USER NAME AND PASSWORD, IF WRONG USERNAME OR PASSWORD VENDOR WILL REDIRECT ALLOWING HIM TO LOGIN AGAIN. UNAUTHENTICATED PERSON CAN'T ACCESS AND THE AUTHENTICATED MODULE WILL REDIRECT TO NEW WEB PAGE WHERE COULD DECIDE TO REGISTER AS NEW USER, OTHER ACTION NOT ALLOWED ONLY BACK TO THE HOME PAGE. II. TRANSACTION MODULE. THIS MODULE IS RESPONSIBLE ON ONLINE TRANSACTION, ALLOWING VENDOR PURCHASING TENDER DOCUMENTS ONLINE, PAYMENT BY VISA CARD AND PAYPAL. THE VENDER COULD BROWSE NEW TENDERS, IF TRANSACTION HAVE DONE VENDOR WILL BE ABLE TO DOWNLOAD THE PURCHASED DOCUMENTS. E-TENDER SUBMISSION MODULE. ONE OF THE SYSTEM FUNCTION THAT IS TO ALLOW VENDORS TO SUBMITTING BIDS AND TENDERS DOCUMENTS ONLINE, UPLOADED FILES WILL STORE IN A SEVER FOLDER BUILD SPECIALLY FOR THIS PURPOSE.

III.

B. Admin module. The main purpose of this module is, gives the system admin functionality of monitoring the main interaction within the system such as receive vendor queries and submission tenders documents. This module has separate login screen, using user name and password for system authentication and has separate database table.

System Architecture
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
In order to develop a system that meets the functionalities requirement and attains its nonfunctional requirements. The ETTS architecture is a multi-tier architecture that has different layers interacting with each other. This architecture model allows easy modification and managing changes can be done in each layer without affecting the other. Figure 4.1 shows the client server architecture of ETTS.

Figure 3 System architecture User Interface Design A user interface is that portion of an interactive computer system that communicates with the user. These are collections of principles for design and improve the quality of user interface design; this principle will be followed and applied to the overall the system. A. Simplicity: In ETTS system considers that the sample design is easy to use and has less error. Shortcuts, icons and links should be simple and are meaningful.

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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
Figure 4 screen shot of ETTS Home page B. Consistency: all system pages have a consistent design interface so that the users would feel comfortable and confident while using the system. C. Visibility: the interface should be clear to illustrate the tasks and options visible, without any user being distracted and easy to reach system functions. D. User control and feedback: The design should give the users control over the pages and feedback to users action and keep them informed about the important actions or error such as feedback on upload documents. System Implementation In an information technology context implementation is encompasses all the processes involved in getting new software or hardware operating properly in its environment, including installation, configuration, and running, testing and making necessary changes. Following are description of ETTS development and implementation: Database Server MySQL relational database management system (RDBMS) provides multi-user access to a number of databases. This system will use MySQL database server.

Web server The primary function of a Web server is to deliver (HTML documents), and any other content to clients. Such as images, cascading style sheets, PHP and java scripts. In this system we will use Apache/2.2.12 (Win32) web server. Development Language A. PHP is Personal Home Pages scripting language that was originally designed for web development to produce dynamic web pages. PHP can be deployed on all web servers, operating systems and platforms. It also can be used with many database management systems. PHP code library are available online, free and easy to use. B. JavaScript is selected as the client side scripting language. It is an open source language developed by Netscape; easy to enhance and supported by most of the internet browser and is available through the internet.

phpMyAdmin version 3.2.0.1 phpMyAdmin is a free software tool written in PHP is intended to handle the administration of MySQL over the World Wide Web. phpMyAdmin supports a wide range of operations with MySQL. The most frequently used operations are supported by the user interface (managing
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
databases, tables, fields, relations, indexes, users, permissions, etc). phpMyAdmin can manage a whole MySQL server as well as a single database. Macromedia Dreamweaver CS3. Adobe Dreamweaver is a web development tool that supports CSS, PHP, JavaScript, and a number of other web-related technologies. Dreamweaver support code generation feature and also has site management tools such as FTP/SFTP transfer file and synchronization features. Image editors A. CorelDraw Graphic design software is use to create vector graphics, photo editing and tracing. B. Adobe Photoshop. Graphic design software is use in Web graphics and design page layout. Unit And Integration Testing Evaluation Unit / Module Access and Authentication Test result The system verifies access detail searching in vendor table and authenticates the sign in details, confirmation vendor login and display vendor name confirming the successful access. The process pass the test and successful. User information added and stored in vendor database table, and user name are unique not duplicated. Feedback is covering each mess use; This unit is tested and passes the test successfully. All tenders announcement in the tender list has valid Buy now button, links to PayPal payment acceptable by visa card or PayPal account, confirm payment immediately after confirming payment, redirect to download tender document or redirect to vendor main menu in case cancellation shopping cart. All this processes tested successfully. Brows widows opened to selecting documents for upload, only PDF file accepted, feedback cover wrong actions, uploaded documents add and stored in server directory successfully, this module function pass the test successfully. Admin could login in the system access details successfully verified, required reports displayed, monitoring system successfully. Vendors logging out of their account successfully with secure.

New vendor registration

Purchasing tender document online

Tender submission

System admin

Logout

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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal
CONCLUSION This project is initiated to provide solution to an existing problem. By developing ETTS webbase application using MYSQL database and PHP as programming languages; the application test results prove that the main objective has been achieved. The system is designed using client server architecture consisting of 4 modules with each module representing important functions. This study has justified the stated problems and providing solutions as the following: Purchasing time not effective. In business world time has values and cost, ETTS use transaction module and submission module to save time and reduced costs by: A. B. C. Online sale of tender documents Online submission of tender documents Selling and submission tenders online impacts the whole purchasing cycle time

Current practice affect work quality because it is done manually In order to reduce paperwork ETTS web-base application is designed and built to provide solutions, reducing paper transmittals through selling or submission of tender documents. ETTS improves work quality by designing simple application taking into consideration: a) Its consistencies to make user feel confidence towards the system.

b) User control and feedback interaction between the system and the users to keep them informed about important action c) User friendly interface with no extra screens, only the main function to enrich the system visibility No e-commerce system implemented E-tendering is part of e-commerce. It is known that e-commerce has great benefits and contributes greatly to the business world, so not implementing e-commerce will lose the benefits of expanding new markets, reducing operation process cost and information availability. From the researcher perspective, ETTS will help to pave the way for future for e-commerce in Libyan oil industries.
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JOURNAL OF COMPUTING & ORGANISATIONAL DYNAMICS Double Blind Peer Reviewed Open Access Journal

Lack of exchange information with vendor affects decision making. Communication is vital for business to progress. ETTS offers online connection which provides exchange of ideas and information with regards to tendering process. The main difference with manual system is that communication it cannot provide remote interaction and are usually hindered by geographic location. ETTS provides such platform in that information is receive faster and will be helpful in making decision; for example updating, amendment, adjustments and other relevant information needed for the tendering purpose.

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