The SFTI initiative; End-to-end e-procurement in Sweden; key actions and concrete support Håkan Sörman General Director, Swedish Association of Local Authorities and Regions (SALAR)

Public procurement and wellfunctioning order-invoice process? The result of an often costly tendering process is contracts, often framework agreements The question is: how to visualise the contracts to ensure that employees, in an often decentralised organisation, order - the correct goods and services, - to correct prices and - from the suppliers who won the contract! A win-win situation for public sector and the suppliers

So, our objectives for e-procurement is.. –Better compliance with framework agreements –Increased awareness of prices when easy available –More efficient procurement; i.e matching invoice with the order –Better internal control –Available statistics to use for future procurements The goal: more resources for the core public activities (i.e. schools, hospitals, elderly care etc.)

E-procurement; the political vision? -2/3 of the goods and services purchased by selfdependant municipalities and regions, 1/3 by governmental sector - How promote e-procurement without legislation but strong support? - The political vision and strategy was clear: Some key actions necessary to address: - good infrastructure/broadband necessary, - technic and standards to be developed, - legal conditions in place and - education and support for buyers and enterprises - A joint initiative was needed ; the SFTI concept

SFTI (Single Face To Industry) in Sweden SFTI is a joint initiative to promote e- procurement Lead by Swedish Association of Local Authorities and Regions ( SALAR ) and the government agencies ( The Swedish National Financial Management Authority/ESV and The Legal, Financial and Administrative Services Agency/Kammarkollegiet). Cooperation public sector, enterprises and IT providers. All represented in the workinggroups and when recommending standards & guidelines.

End to end e-procurement process; contract, the bridge between tendering and ordering/invoice process Notification Tendering Process Contract / e-Catalogue Ordering Process Invoicing Process We started with standards & promotion for e-ordering-e-invoice process We also support e-tendering process, but platforms instead of exchange of e-messages has lead to less standardisation activities Payment was already efficient, no need for standardisation etc.

Mandatory e-ordering and e-invoicing in governmental sector The SFTI initiative started with strong support, but on volountary basis 2008 came regulation: all Swedish government agencies must send and receive electronic invoices no later than July 1, 2008 Can save 400 Million in 5 years ( ref.to pre study ) From 2013 also mandatory to handle e-ordering. Part of Swedish Action Plan for E-government – i2010 But still mandatory for municipalities and regions/county councils

But standardisation activities and good infrastructure is not enough! E-procurement needs political commitment Resources necessary - for procurement of IT- solution but also - education, support and preparing the organisation for the new way of working.

E-procurement in figures Even if volountary for local and regional level, many have started: > 61 % of municipalities have e- invoicing, by which half of them also e-ordering -7 % have decided to start e- procurement/e-invoicing -11 % consider starting up within next few years. -95 % of the regions/county councils have e-invoicing ( 88 % of them also have e-ordering) > 50 % of contracting authorities have e-tendering. Appr 35% of procured goods and services with e- tendering.

Benefits and effects? The benefits are clear ( according to a survey 2013 ): better compliance to framework agreements and thus better prices ( economic savings between 1-10 % of total budget, more economic and human resources for core public sector activities; like schools, hosptitals, elderly care etc) efficient procurement process, good statistics which give economic steering and internal control and form the base of coming tendering processes.

Challenges and lessons learnt? High level management commitment is very important Core activity must take the lead; e-procurement is not an ICT issue Difficult to change management Training is very important Important involving enterprises and ICT sector early E-procurement is not a quick fix, but gives benefits in money, time and quality Benefits also for the suppliers

The way forward? The cooperation continues, on national, regional and local level Still need for further standardisation Support through training,education and web-based verification tool, Continued participation in international standardisation foras ( SFTI standards based on UN/CEFACT, CEN and OASIS/UBL standards ) Further information activities for both contracting authorities and enterprises, especially SME:s

Thank you! Questions! Håkan Sörman