Purchases by Catalogue / Framework Agreements

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2008/SOM3/GPEG/SEM/007
Purchases by Catalogue / Framework Agreements
Submitted by: Chile
Seminar on Implementation of the Value for
Money Non Binding Principle in Government
Procurement
Lima, Peru
13-14 August 2008
PURCHASES BY
CATALOGUE /
FRAMEWORK
AGREEMENTS
LORENA CARO CALFUMÁN
Framework Agreement
Commercial Department
ChileCompra
August 14th, 2008
www.chilecompra.cl
MOTIVATION
IN THIS PRESENTATION I’LL TALK ABOUT THE BENEFITS AND RISKS OF FRAMEWORK AGREEMENTS IN THE CONTEXT OF THE VALUE FOR MONEY AMONG OTHER THINGS.
1.FIRST, I’LL GIVE YOU SOME GENERAL INFORMATION ABOUT HOW THE FRAMEWORK AGREEMENT CATALOGUE WORKS.
2.SECONDLY, I’LL TALK ABOUT THE BENEFITS AND RISKS OF FRAMEWORK AGREEMENTS IN THE GOVERMENT PROCUREMENT SYSTEM.
3.LAST OF ALL, I WANT TO LOOK AT CHILE’S FUTURE PLANS CONCERNING THE FRAMEWORK AGREEMENT CATALOGUE.
www.chilecompra.cl
FRAMEWORK AGREEMENTS
A FRAMEWORK AGREEMENT IS AN AGREEMENT WITH ONE OR MORE SUPPLIERS THAT ESTABLISHES TERMS AND CONDITIONS UNDER WHICH THE PARTIES WILL ENTER INTO SUBSEQUENT CONTRACTS IN THE PERIODS WHICH THE FRAMEWORK AGREEMENT APPLIES.
LAW Nº19.886
THE ENTITIES MUST TO BUY BY FRAMEWORK
AGREEMENTS EXCEPT FOR ADVANTAGEOUS
CONDITIONS UNDER
OTHER PURCHASE’S
MECHANISM. THE ADVANTAGES MUST BE OBJECTIVE AND DEMONSTRABLE
www.chilecompra.cl
CHILE COMPRA EXPRESS
Electronic Market
Transactional
www.chilecompra.cl
USD 4.500 MM
1.500.000 OC
Electronic
Catalogue
USD 450 MM
300.000 OC
www.chilecompra.cl
CHILECOMPRA EXPRESS YEAR 2007
Millones US$
Transacciones en ChileCompra Express
FRAMEWORK AGREEMENTS TRANSACTIONS
Años 2003 ‐
2003‐20072007
500
450
400
350
300
250
200
150
100
50
0
300.000
• US$ 450 MILLION TURNOVERS, 300.000 PURCHASE ORDERS
250.000
200.000
150.000
100.000
• 60 FRAMEWORK AGREEMENTS, 150.000 PRODUCTS, 1400 SUPPLIERS.
50.000
0
2003
2004
2005
2006
AMOUNT
Monto Transado ChileCompra Express
2007
N°OC ChileCompra Express
OF PURCHASE ORDERS
N°
www.chilecompra.cl
FRAMEWORK AGREEMENT LIFECYCLE
contract terms
CHILECOMPRA’S PROJECT MANAGERS CREATE THE RULES AND CONTRACT FOR TENDERING
CATALOGUE DEPARTMENT PREPARES AND REVIEWS THE PRODUCT DATASHEETS WITH PRICES AND COMMERCIAL CONDITIONS FOR EACH SUPPLIER.
CHILECOMPRA’S PRODUCT SPECIALIST MANAGE THE FRAMEWORK AGREEMENTS AND THE CATALOGUE
•Framework Agreements Assessment
•Production of Product Datasheets
•Reception of photografies
www.chilecompra.cl
HOW WORK THE SUPPLIERS ON THE
CATALOGUE?
www.chilecompra.cl
Benefits of Framework Agreements
www.chilecompra.cl
SOME RISKS
IT’S IMPORTANT TO MAKE A GOOD SELECTION OF THE PEOPLE WHO MANAGE THE FRAMEWORK AGREEMENTS. TO CHOOSE A BIG PURCHASE SUPPLIER IT’S A GOOD IDEA TO DESIGN A PROCEDURE TO ENSURE THE TRANSPARENCY AND EQUITY.
SOMETIMES, IT’S DIFFICULT TO MANAGE THE MARKET PRICES VOLATILITY OF THE MARKET TO CONTROL A GOOD PRICE LEVEL ON THE CATALOGUE.
www.chilecompra.cl
IMPORTANCE OF WORKING WITH SUPPLIERS
Why we must incentive suppliers to make good commercial plans?
www.chilecompra.cl
FRAMEWORK AGREEMENTS: VALUE FOR
MONEY STUDY-BELGIAN COURT OF AUDIT
A SURVEY WAS CARRIED OUT TO NINE PROCUREMENT OFFICES WITH THE FOLLOWING MAIN CONCLUSIONS:
‰
‰
‰
‰
‰
‰
‰
‰
THE USE OF FRAMEWORK AGREEMENT HAS RISEN.
THE PROCUREMENT OFFICE AIM IS ALWAYS TO RECEIVE AN INPUT FROM PUBLIC ENTITIES. CUSTOMER INPUT IS ESSENTIAL TO WORKOUT CONTRACTS DEALING WITH NEW PRODUCTS.
IN GENERAL, FEW BUYERS MAKE THE MOST OF PURCHASE ORDERS.
ONLY SOME OFFICES CALCULATE SAVING GENERATED BY THE PRICE COMPETITIVENESS OF FRAMEWORK AGREEMENTS
IN GENERAL, CUSTOMERS ARE SATISFIED WITH THE PROCESS COST SAVINGS
AS ALL CUSTOMERS ARE CHARGED THE SAME PRICE OF PRODUCTS, IN GENERAL THE SMALLER ORGANIZATIONS HAVE THE MOST SAVINGS. CONCERNING THE PRODUCT RANGE, TELECOMUNICATIONS, PHOTOCOPIERS, ENERGY, PC AND OFFICE SUPPLIES, THEY ARE CONSIDERED TO OFFER MOST VALUE FOR MONEY.
FINALLY, THE NEED FOR INTEGRATION IS AN INDIPENSABLE CONDITION FOR A GOOD FUNCTIONIG, FOR EXAMPLE TO KNOW WHAT PUBLIC ENTITIES BUY, WHEN THEY BUY AND WHAT PRICE THEY PAY, ETC.
www.chilecompra.cl
Chilean FA Aims 2008 - 2010
2007
2008
2009
2010
Turnovers MM USD
445
700
900
1.000
Client’s Satisfaction
59%
65%
70%
70%
Savings MM USD
25
33
43
50
Purchase Orders
250.000
390.000
450.000
500.000
www.chilecompra.cl
Incremento
de la eficiencia del portafolio base
FRAMEWORK AGREEMENTS EFFICIENCY INCREASE
Efficiency
USD
15 base points: USD 110 MM
100,000,000
90,000,000
80,000,000
75%
70,000,000
60,000,000
50,000,000
60%
40,000,000
30,000,000
20,000,000
10,000,000
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www.chilecompra.cl
GOOD PRODUCTS AND GOOD PRICES ‐
QUALITY DATASHEETS
NEW FRAMEWORK AGREEMENTS FRAMEWORK AGREEMENTS RENOVATIONS www.chilecompra.cl
Buyers Satisfaction Survey
www.chilecompra.cl
Price Strategy
Study of prices each three months
Suppliers with specialist working in their prices
New claims
Cheaper suppliers will be privileged to offer their products on the catalogue
• To generate more business competence.
•
•
•
•
www.chilecompra.cl
BI BUYERS
CRM
MKT
CUSTOMERS SERVICE
SALES
Reporting
Data Warehouse
www.chilecompra.cl
Conclusions
9
9
9
9
9
9
9
9
9
9
9
THE FRAMEWORKS AGREEMENTS ARE A SUCCESSFUL PURCHASE MECHANISM.
THEY HAVE EXPANDED RAPIDLY OVER THE LAST FIVE YEARS
THEY GIVE MANY BENEFITS TO THE DIFFERENT PARTICIPANTS
TRANSPARENCY TO EMPOWER SUPPLIERS AND OTHER STAKEHOLDERS
ECONOMIC GROWTH
BETTER PUBLIC INSTITUTIONS
BETTER GOVERNMENT
EACH AGENCY CHOOSES THE PRODUCTS THAT NEED IN A SHORT TIME
THEY GENERATE SAVINGS FOR THE PUBLIC PROCUREMENT THEY ALLOW ACCESS TO GOVERNMENT BUSINESS OPPORTUNITIES AND IMPROVES GOVERNMENT’S PROCUREMENT PROCESSES GIVING VALUE FOR MONEY
WE MUST MAKE A GOOD JOB TO IMPROVE EVER MORE THIS PURCHASE MECHANISM
www.chilecompra.cl