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A strategy to reduce public expenditure based on e-tendering and procurement Business Inteligence.

A strategy to reduce public expenditure based on e-tendering and procurement Business Inteligence.

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Published by Nicky Santoro
Informe editado y elaborado por la European Vortal Academy (eVA) en el que se abordan las ventajas de la implantación de la licitación electrónica de manera generalizada en Portugal.






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Informe editado y elaborado por la European Vortal Academy (eVA) en el que se abordan las ventajas de la implantación de la licitación electrónica de manera generalizada en Portugal.






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Published by: Nicky Santoro on Sep 15, 2011
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A strategy to reducepublic expenditurebased on e-tenderingand PROCUREMENTBUSINESS INTELLIGENCE:The case of Portugal
L. VALADARES TAVARES*July.2011
*Full Professor Emeritus of IST; Researcher of CESUR; President of the Portuguese Technologic Foresight Observatory (OPET); President of APMEP (Portuguese Society of Public Markets); Scientific Advisor of Vortal.
Trust in eVolution
 
EXECUTIVE SUMMARY
The high average levels of public deficit and national debt of EU member States justify thedevelopment of a new strategy to reduce public expenditure.E-public procurement can be a key instrument to achieve a significant reduction of suchexpenditure without introducing more cuts on governmental outputs to serve citizens,communities and corporations, particularly in the sensitive areas of social assistance,education and health.Actually, public procurement accounts for more than 16% of GDP and it has not yet madefull use of innovative models and tools already adopted by advanced business sectors tostreamline their supply chains, to increase transparency and speed as well as to reduceadministrative cost and contract price.Therefore, a significant potential for public savings can be used in public procurementbut such process of change requires a new management culture and new tools. In thiscommunication, the author analyses key lines of change to be pursued and show that e-procurement and, particularly, e-tendering are the appropriate tools to implement suchchanges because they can support significant improvements to cope with strategic andtactical challenges of public procurement if supported by Procurement Business IntelligenceInstruments (PBI).The experience of Portugal is adopted as an important case study because it is the firstMember State to have mandatory e-public procurement including e-public Tendering forany open, restricted or negotiated procedure, since Nov. 2009.The different types of savings were estimated using public procurement data for 2010 andan overall reduction between 6% and 12% can be estimated for the total public expendituredue to e-Tendering and PBI.Several remarks and conclusions drawn up from this case study are also presented herein.
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A Strategy to Reduce Public Expenditure though e-Tendering and Procurement Business Intelligence (PBI): The case of Portugal.
 
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A Strategy to Reduce Public Expenditure though e-Tendering and Procurement Business Intelligence (PBI): The case of Portugal.
“Innovation rather than price competitionin what drives the market process”
Prof. William J. Baumol, New YorkUniversity.
INDEX
1. WHY A STRATEGY TO IMPROVE PUBLIC PROCUREMENT?042. WHICH STRATEGY?063. ePUBLIC PROCUREMENT AND eTENDERING094. FROM ELECTRONIC DATA EXCHANGE TO PROCUREMENT BUSINESS INTELLIGENCE (PBI)125. EVIDENCES ON SAVINGS146. REFERENCES18

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