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Empowering Citizens to become Entrepreneurs
through a One-Stop e-Procurement Portal
The Chilean Experience
June - 2007
GOBIERNO DE CHILEMINISTERIO DE HACIENDA
2
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”
3
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.
Public Procurement Market Reform – New System
Tra
inin
g a
nd
S
up
port
Tra
inin
g a
nd
S
up
port
Bids System ChileCompra Express Catalogue
Electronic Procurement Platform - ChileCompra
6
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
Access
+Access to information and
tools Access to business Opportunities / Rules
How can we achieve these SME market share?
8
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
Jacqueline Sandoval: ChileCompra’s Provider
Evolution:
2003: USD 1000 of Sales per Month / bankruptcy
2006: USD 30.000 of Sales per Month / 10 workers
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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