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Development of procurement

The development of public procurement is a joint effort

  • The annual value of the procurement of products and services by government organisations is approximately six billion euros. Shared good practices ensure that procurement is carried out in a uniform and efficient manner. Finland is a shining example of open administration when it comes to procurement, as well: Each citizen may monitor the use of tax euros and review the background information for procurement with the help of open data.

    The State Treasury provides services related to the direction, development and monitoring, among others, of procurement primarily to government agencies. Cooperation with other shared government service providers, such as Hansel and Palkeet, is key. If you work with public procurement in central government, don’t hesitate to find out more about the networks connected to government procurement and get involved. You can find interesting networks that may be of great use to you, too, in the service descriptions and on the tabs.

  • Networked cooperation

    Government procurement is managed in networked cooperation, which covers e.g. agency experts, group operators as well as product and service providers.

    In terms of euros spent, the most significant suppliers are governmental service providers. Shared government services are provided by, for example:

    • Senate Properties
    • Valtori
    • Hansel
    • Palkeet
    • HAUS
    • State Treasury

    Corporate actors maintain various themed networks in connection with procurement, knowledge-based management, competence development or communications.

    In addition to this, Finnish procurement experts are involved in numerous international networks related to the digitalisation of government procurement, electronic procurement communication and the development of procurement.

  • Development portfolio

    The development portfolio is compiled and maintained with the help of the situation picture and networked operations. It is assessed, prioritised and resourced in the procurement process steering group, where corporate actors are represented. Government procurement is used to produce a roadmap for the coming years in cooperation with other interest groups based on the architecture model. This improves the prerequisites for managing and monitoring development and makes development work visible in the project portfolio.

    The first roadmap based on the development portfolio will be published in the material bank (see tabs) in 2019.

  • Supplier management in government agencies

    The government is an attractive contract party, because the government is an open, fair and professional partner. Unnecessary bureaucracy has been removed from government procurement, and the requisition process can already be implemented smoothly.

    Instructing agencies in supplier cooperation

    The government offers its suppliers training, communication and event services as part of long-term cooperation. As a cooperation partner, the government is interested in supplier viewpoints and development needs in relation to government procurement. Special focus is placed on implementing procurement in a responsible manner and in sufficiently small sections, so that small and medium-sized companies have better prerequisites to participate in competitive tendering.

    The task of the State Treasury is to provide instructions and guidance to agencies concerning smooth supplier cooperation and its development. Supplier cooperation covers the following questions, for example:

    • Which instructions do agencies provide concerning supplier management?
    • What should agencies take into consideration when implementing supplier management?
    • How is adherence to contract terms monitored, for example?
    • How can suppliers start using the supplier portal of the Handi service used by the government?
  • Digitalisation of procurement

    Thanks to the Handi programme for the digitalisation of government procurement processes, the central government’s procurement processes are more uniform and streamlined than before. Procurement is now managed more professionally and the prerequisites for information management have improved. The procurement process was developed in its entirety from identifying the procurement needs to the order, payment and reporting.

    In 2020, government procurement is:

    • professional
    • reliable
    • coherent
    • efficient
    • open

    The procurement digitalisation implementation programme is divided into approximately ten projects and smaller task areas. The most significant results of the implementation project include:

    • The Handi service, i.e.  a shared government ordering and invoice processing solution
    • The Hanki service, i.e. electronic competitive tendering for government procurement
    • The renewal of the Hilma service, i.e. the public procurement notification channel
    • The opening up of procurement data and extensive utilisation of it in the AvoinData.fi, TutkiHankintoja.fi and Hankintapulssi services, for example.

    Several networks comprising procurement professionals as well as shared government service providers have been involved in digitising procurement. The Handi programme was produced by more than one hundred public procurement professionals, mainly from government procurement.

    For more information, visit handi.fi >

  • Expert communications on procurement

    Public procurement is the topic of many discussions in different target groups in seminars and on social media, for example. In order to ensure that the financial and procurement professionals in central government are able to participate in this discussion and have an impact in their own field of expertise through communication, they are offered training in small groups.

    In a specialised branch such as public procurement, a small following is enough to generate shares, retweets and comments on social media, which will in turn expand the exposure of the discussion significantly. Themes like responsibility and SMEs are likely to generate the liveliest discussion.

    The development path of experts’ communication skills focuses on the following areas:

    • procurement-themed online discussions
    • identifying expertise and clarifying key messages
    • social media tools
    • public speaking and argumentation skills
    • writing blogs as a tool for procurement professionals
  • Development of expertise: Procurement 2020

    In government procurement, the expertise of the procurement experts’ network is improved by centralising operations and increasing training, for example.

    As part of the Handi programme, an extensive training entity on the requisition process has been designed for central government financial and procurement professionals. The training entity, dubbed Hankinta 2020, is the first online training programme provided by government procurement, where the procurement process is examined as a whole from start to finish.

    Hankinta 2020 – Seven online courses

    Hankinta 2020 covers seven online courses, six of which have been published thus far. The training entity has been divided into courses based on the phases of the requisition process.

    1. Managing procurement as part of managing operations

    2. Planning procurement

    3. Preparing procurement and implementing competitive tendering

    4. Contract management

    5. Ordering

    6. Expenditure handling and payment

    7. Reporting and analysis

  • Situational picture of government procurement

    The State Treasury produces a situational picture of government procurement as a whole each quarter. It contains information on process functionality, development needs, the contract base and suppliers, for example. The first situational picture will be published in 2019.

  • The self-assessment of government procurement

    There is no need to reinvent the wheel – this is also true for the development of procurement. This is why we are producing a straightforward instrument for self-assessment by government procurement. The results from the assessment instrument are used to produce reference data to support public procurement development.

    The first results will be available sometime during 2019.

  • Best practices

    Networking with other agencies and experts is a crucial part of procurement professionals’ work. This enables the sharing of lessons learned from developing procurement and best practices from similar operating environments.

    Networks are powerful

    Government procurement experts are encouraged to network in themed monthly workshops, for example. The workshops have focused on themes such as responsibility and electronic competitive tendering. In 2019,  the typical reason for procurement experts to seek best practices is the implementation of the Handi service. The ordering and invoice processing solution will be adopted by all accounting units by the end of 2019. Palkeet is in charge of the project.

    The same issues often surface when developing procurement:

    • procurement planning as part of financial planning
    • managing procurement, roles and responsibilities
    • organising and centralising procurement
    • supplier management and cooperation

    Please also see instructions concerning the best practices of the ‘Hankinnasta maksuun’ (From procurement to purchase) process produced by the State Treasury. The instruction will help accounting units in many development areas of the operation.

    Good practices in the ‘From procurement to payment’ process >