Estonia's Deltabid (formally Liitu) has launched an e-procurement tool to standardize the tender process, cut paperwork, and help companies save money. Believe it or not, procurement is fairly outdated, many projects are still using paper and spreadsheets. But DeltaBid's solution has come with good timing, while e-procurement is only used in 5-10% of procurement procedures in the EU, the European Commission has set out a strategy to make e-procurement mandatory by mid 2016.
“The procurement process is outdated and falls behind the e-world we live in, with many companies still laden with paperwork, bureaucracy, corruption and bribery,” said Erkki Brakmann CEO, DeltaBid. “Paper or email-based procurement processes are inefficient and opaque. DeltaBid aims to change that by replacing the ‘Email and Excel’ procurement method with a standardized, transparent tender process which gives easy oversight of all tenders.”
The benefit to their process is they provide a central procurement center that has all tender information in one place. Because the process is standardized through DeltaBid, the process is transparent to suppliers, and therefore can increase participation.
The company already counts Estonian Gas, ABB, Eltel Networks, Tele2, T-Tammer and Danpower as customers.
“DeltaBid has considerably enhanced the efficiency of our procurement processes on gas line construction and renovation works by making it more transparent and creating bigger competition between suppliers,” said Roman Bogdanovits, CEO, Gaasivõrgud, Estonian Gas distribution network operator.
“We saved 300,000 euros last year, which represents five percent of our total investment. We now use DeltaBid to conduct competitive tenders on all work and with the same rules, giving suppliers more trust and transparency.”
More transparency can only be a good thing for the procurement process, just thinking back on last May's story on Finland rejecting IBM's abnormally low bid for a new tax system.