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The Italian e-Procurement System

The Italian e-Procurement System. Status of eprocurement in Italy: role of the operators. 5096 Mln. + 58%. 660 Mln. Private Operators. 3220 Mln. Regions and other Public operators. 2050 Mln. 1232 Mln. 1141 Mln. Consip. 2386 Mln. 252 Mln. 76 Mln. 2004. 2005. 2006. 2007. 2008.

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The Italian e-Procurement System

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  1. The Italian e-Procurement System

  2. Status of eprocurement in Italy: role of the operators 5096 Mln + 58% 660 Mln Private Operators 3220 Mln Regions and other Public operators 2050 Mln 1232 Mln 1141 Mln Consip 2386 Mln 252 Mln 76 Mln 2004 2005 2006 2007 2008 2009 2010 Results of the Observatory on eProcurement in PA - School of Management – Politecnico of Milan

  3. Consip’s eProcurement system Eprocurement portal - www.acquistinretepa.it 2000 2002 2004 2010/2012 FAs and DPS eshops On line tenders e-Marketplace -MEPA • Direct order or RFQ • Low cost goods • Spot purchasing • Highly fragmented offer • ecatalogue • On-line tenders in a structured and managed environment (two-stage procedures) • Standardised procedures • for commonly used goods & services with customisation • Frame contracts or ASP • Large volumes • Demand aggregation • Standard /Specialized goods • High price volatility • Purchases within frame contracts • Large volumes • Demand aggregation • Standardized goods • Low price volatility Above and Below EU Threshold Above and Below Only Below • 2011 results • transaction value 2.600 mln€ • orders num. 78.000 • active buyers 11.000 • 2011 results • trans. value 240 mln € • orders num. 74.000 • active buyers 5.600 NFCs = National Framework Contracts / FAs = Framework Agreements / DPS = Dynamic Purchasing System

  4. Public user Supplier Direct purchase Request for Quotation The PA Marketplace: buying options • Public users may buy in 2 different ways: • making a direct purchase selecting goods and services from the catalogue • negotiating the product quality and service levels with qualified suppliers (Request for Quotation), handling on-line the entire purchasing process and digitally signing the order

  5. Available product categories Individual protection devices Training & Education svcs IT HW and SW Surgical instruments Electric maint. svcs Elevators maint. svcs Furnitures Stationery Electric material and air condit. equip. Gas providingsvcs Print & Copy equipment Office cleaning svcs Cleaning products Laboratory equipment TLC products Office and road signals

  6. MEPA – Main Results Achieved 2004 2005 2006 2007 2008 2009 2010 2011 Orders value (M€) N. orders: 20% RfQ Value orders: 67% RfQ Average value: • RfQ: 10.800 € • Direct Order: 1.500 € 243 8,3 29,8 38,2 83,6 172,2 230,6 254,2 % growth vs previous year - -4% * 259% 28% 119% 106% 34% 10% number 3.143 9.677 11.468 28.173 63.245 72.796 77.132 74.397 -4% * - 208% 19% 146% 124% 15% 6% % growth vs previous year Enterprises • 72% micro (<10 ) • 21% small • 6% medium • 2% big Offer Enterprises on line 309 597 868 1.156 2.088 3.027 4.556 5.100 Catalogues on line 324 771 1.146 1.809 3.692 5.406 6.640 6.300 1.490.818 1.190.000 Articles on line 113.207 190.484 226.748 332.465 540.000 1.331.915 Demand Active buyers 540 1.100 1.255 2.748 4.288 5.070 5.339 5.600

  7. Choosing the appropriate e-Proctool • Customised MEPA Dynamic Purchasing System mult. suppliers with negotiation Framework Agreement Buy side 1 supplier with negotiation Demand side mult. suppliers fixed conditions 1 supplier fixed condition Framework Contracts • Standard … • Fragmented • Specialised • Concentrated • Standardized Supply side • The adoption of different tools is related to the market (buy and supply side) characteristics • Wider offering of e-Proc tools • More business opportunities for SME’s trough e-procurement

  8. Evolution of Consip’s role Consip role MEPA Dynamic Purchasing System • “MARKET MAKER” mult. suppliers with negotiation Framework Agreement 1 supplier with negotiation Demand side mult. suppliers fixed conditions 1 supplier fixed condition • “Awarding Authority“ Framework Contracts Greater Buyer authonomy New e-Proc tools adoption calls for a strategic change in Consip’s role and capabilities

  9. A new “custom” e-procurement Platform for a key role of Consip From Central Awarding Authority to eproc “market maker” Change Management driver • “Users’ oriented system” development and management • Service Customization and Integration • Back-end optimization • User Assistance and Support

  10. The new platform functional architecture New application architecture Flexibility and scalebility Web 2.0 Portal e search engine oriented Accessibility Users Portal CONNECTED WITH Catalogue mgmt registration Orders Negotiation CRM email DWH DMS Admin

  11. A change in the implementation approach • Evolution in: • Legislation • Users needs • Technology New e-proc platform • 2011 • 2000 • 2005 • 2008 Insourcing HW & base SW Insourcing Application SW Full outsourcing

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