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E-Procurement in Norway
Third Global conference on
Electronic Government Procurement
Mr. Dag Strömsnes
Washington, 9th of November 2009
Agency for Public Management and
eGovernment (DIFI), Department for
Public Procurement
An advisory and policy enabling unit for Public Procurement and eProcurement issues within the Norwegian Government
Mission to cater for better, more efficient and trustworthy Procurement in the public sector in Norway
Ethics and anti-corruption
Follow up of “Action plan for environmental friendly and socially responsible public procurement”
Coordinator of the PEPPOL (Pan-European Public Procurement OnLine) project
Value creationPublic procurement regulations
Internal control
Sourcing strategy
Systems and technologies
Performance measurement
Organizational and competence development
Strategicsourcing process
Roles and responsibilities
Operational purchasing
process
Broad persepective on
e-procurement
National e-procurement program includes
entire public sector (both government and municipalities)
Consistency with relevant European initiatives
Simplicity for both buyers and sellers(Buyer-driven, seller-friendly solutions)
Electronic support to all procurement processes
Source Procure Pay
Main goals for e-procurement
Better procurementIncrease loyalty to framework agreements
Increase negotiation power
More effective procurementEffective workflow
Effective communication
Safer procurementReduce error handling (eg. invoices)
Increase traceability and transparency
The ”tool-box” (I)
E-sourcing:
Tender notices (Operator: Millstream Ass. Ltd)
mandatory database for electronic submission
of tender notices (mandatory above € 60.000)
E-sourcing (Two alternative operators)
Complete electronic workflow and communication from
planning phase to contract signing
Including support for eSignatures (eg. signing offers/proposals)
Supporting all legal public procedures (including eAuctions)
The ”tool-box” (II)
E-procurement and -invocing:
E-procurment plattform (Private Operator: IBX)
Many-to-many integration buyers and suppliers
(E-catalogues, e-orders, e-order confirmations)
eCatalogue management and search engine
Order and invoice handling (3 alternative operators)
supporting electronic workflow for buyer on
ordering and invoice-handling
Business model (I)
All solutions runned by external, private operatorsCentral negotiated contracts Difi vs Operators
Subscription agreements
- Buyers vs Operator and
- Suppliers vs Operator
All solutions delivered
as ASP-services
Business model (II)
Mainly user-financedConnection fee
Subscription fee
Additional services (change management, training, support,…)
No transaction fees
E-procurement adoption
Some numbers…
Public entities sending e-tenders All
E-tenders in 2008 10.218
Public entities on e-sourcing 169
Public entities on e-procurement 60
Active suppliers on e-procurement 453
Aggregated e-Order value (last 12 months) USD 536.250.000
Number of e-Orders (last 12 months) 255.000
E-Ordering – hard work, positive trend
0
500,000,000
1,000,000,000
1,500,000,000
2,000,000,000
2,500,000,000
3,000,000,000
3,500,000,000
Sep 2002
Sep 2003
Sep 2004
Sep 2005
Sep 2006
Sep 2007
Sep 2008
Sep 2009
3,002,991,796
Turnover in Norwegian kroneraggregated last 12 months
Adoption in different sectors (I)
Universities and university collegesEntire sector will be operative during 2010
HospitalsApproximately 60 % of Norwegian hospitals are operative or are
presently preparing implementation
Central government Only a few are operative
Government Agency for Financial Management is piloting
e-procurement and are planning to operate e-procurement on
behalf of a large number of Government entities
(presently piloting Norwegian Tax Administration)
Adoption in different sectors (II)
Municipalities30 of 435 municipalities are operative, mainly the largest and
some medium sized municipalities
None of the many small municipalities are operative
Government enterprisesNational Railway Administration and Airport Administration are
operative
Military forcesPartly using national e-sourcing solutions
Own solutions for e-ordering and e-invoicing and their volumes
are not included in our statistics.
Still a way to go…
Main challenge is to reach higher volumes:
Attract new users
Stimulate excisting users to explore further potential
Good reason to be optimistic
A constantly increasing focus on procurement
and ”e-maturity”
Some have succeeded…
Many have made good strategic foundations
Many new stakeholders are seeking information
Eprocurement gets better and
cheaperIBX won the tender of the new electronic
procurement portal, contract signed on 2nd
November 2009.
In operation as of 1st July 2010 with new
functionality:
Function for simple ordering for small enterprises
Better catalogue handling
Simple request
Invoice
Open market place
Reduced prices
Other reasons for optimism
The Norwegian Government: increased
priority for eprocurement
Compulsory electronic invoicing gives
synergy effects
The Norwegian Goverment Agency for
Financial Management (SSØ), pilot on
eprocurement
Common infrastructure in Europe gives
durable solutions enabling crossborder
eprocurement
Keys to success
Top leader commitment
Clear goals
Dedicated and competent
project team
Focus on change management
Information, training and
support
Strict routines – ”one way only”
Sanction disloyalty
.. But the most important..
Sourcing strategy
Systems and technologies
Performance measurement
Organizational and competence development
Strategicsourcing process
Roles and responsibilities
Operational purchasing
process