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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
NotificationTenderingProcess
Contract / e-Catalogue
OrderingProcess
InvoicingProcess
• 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
