Korean On-line E-Procurement System (KONEPS)

What business is the organization in ?
Koneps (Korea online E-procurement System) is a cyber market; the world’s largest. It allows transactions between public organizations and supplying companies on the internet. This electronic procurement service is provided by the government of Korea has reached great popularity within a few years. Indeed, about 35000 purchasing agencies and 150.000 suppliers exchange daily 100.000 electronic documents online. The website registers 140.000 visits per day. Cyber market is an important market since public procurement in korea is worth USD 104 bn in 2008, that is to say, 7% of the national GDP.
As a result of their success, PPS (Public procurement service) received the “Public Service Award” from the UN in 2003, and the “Global IT Excellence Award” in 2006. On the other hand, their neighbor countries such as Malaysia, Japan or China as well as others like Canada are using KONEPS as a model for their electronic procurement system.
Through its efficiency, KONEPS contributed to the settlement of e-procurement in the everyday’s life of the XXI century. They also improved the public’s opinion on procurement administration with high transparency.

What products are bought in e-procurement?

“A representative electronic government service of Korea”
What savings were realized financially?
E-procurement prevents task repetition and useless workloads. Thanks to e-Procurement, KONEPS allowed the saving of USD 4.5 bn worth of transactions costs (including USD4.1 bn for time and transportation)
PPS’s per capita productivity increased by 102% in one year.

Moreover, the registration time has been reduced from 0.5 day to 1minute!
More generally, both productivity and transparency have been incredibly improved with KONEPS.

How were those savings realized? What changes were made to the procurement process? How does the computer system work? (slide 13)
As we said previously,