empowering citizens to become entrepreneurs through a one-stop e-procurement portal the chilean...

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Empowering Citizens to become Entrepreneurs through a One-Stop e- Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE HACIENDA

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Page 1: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

Empowering Citizens to become Entrepreneurs

through a One-Stop e-Procurement Portal

The Chilean Experience

June - 2007

GOBIERNO DE CHILEMINISTERIO DE HACIENDA

Page 2: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

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Entrepreneurs in the Chilean Public Procurement System

”Here we are providers at the same conditions “

“We compete by quality and fastness"

“Today business are in a short time and very attractive in term

of revenues”

"ChileCompra enable us to compete with big dealers”

Page 3: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

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Problems / Challenges

Asymmetric information and high transactions cost.

Public Procurement Market Reform – Year 2003

Strategic aims To consolidate transparency and wide access to the Public

Procurement System.

To contribute to the saving and efficiency of the Public Spending and

improve the quality of the supply management of the Public Institutions.

To benefit the commerce and the Electronic Government.

Page 4: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

Public Procurement Market Reform – New System

Tra

inin

g a

nd

S

up

port

Tra

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g a

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S

up

port

Page 5: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

Bids System ChileCompra Express Catalogue

Electronic Procurement Platform - ChileCompra

Page 6: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

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Synthesis 2006: Aims: Transparency + Efficiency + Electronic

Commerce.

900 Public Services: Agencies, Municipalities, Schools, Universities, Hospitals, Armed Forces.

250.000 Companies / 98% SMEs.

1.200.000 visitors per month / 400.000 different

1.250.000 of Purchase Orders per year

USD 3,500 millions (~3% chilean GDP).

Saving - 5% in prices / USD 60 millions per year.

35% SME participation.

Indicators (2006)Market Share per company size (2006)

Public Procurement Market - ChileCompraChilean Economy

Medium

Big

Small

Micro

Page 7: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

Access

+Access to information and

tools Access to business Opportunities / Rules

How can we achieve these SME market share?

Page 8: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

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GOBIERNO DE CHILEMINISTERIO DE HACIENDA

DIRECCIÓN DE COMPRAS Y CONTRATACIÓN PÚBLICA

SME provide sustainability, since small enterprises assure great competition and social control.

Better procurement solutions. SME have the flexibility and adaptability to attend properly complex requirements.

Advantages high SME market share

Page 9: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

Jacqueline Sandoval: ChileCompra’s Provider

Evolution:

2003: USD 1000 of Sales per Month / bankruptcy

2006: USD 30.000 of Sales per Month / 10 workers

Page 10: Empowering Citizens to become Entrepreneurs through a One-Stop e-Procurement Portal The Chilean Experience June - 2007 GOBIERNO DE CHILE MINISTERIO DE

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Is possible to combine efficiency and transparency. Technology is a

great ally to make advances toward both goals at the same time.

Technology helps but it is not an end by itself. Transformations occur

with a good diagnosis, good plans and policies. ChileCompra is not a

technological project, is a public policy supported by technology.

Innovate is to put into work ideas which produced added value. A good

plan is void if it isn’t properly implemented. Marketing and training were

fundamentals in ChileCompra implementation.

Conclusion