Senate Group’s procurement development programme already delivered savings of €23 million
In summer 2023, Senate Group, which is responsible for state-owned properties, launched a procurement development programme which sought to improve the effectiveness of procurement and to make it easier for companies to participate in public tendering. The development programme has got off to a brisk start and in 2023, savings under the programme had already reached around €23 million.
The development programme aims at delivering total savings of €100 million by the end of 2029. The purpose of the programme is to improve the effectiveness of procurement, in particular by increasing willingness to bid for tenders.
“Tendering in public procurement is often considered to be laborious. We want to develop our own operations and to find ways to make it easier to participate in tenders. This will allow more and more companies to participate in tenders, and at the same time allow a possibility to obtain significant savings in procurement,” says Esapekka Kuikka, Procurement Director at Senate Properties.
During 2024, the development programme will roll out a number of measures, including piloting new procurement methods, increasing market dialogue on tenders and organising events for potential suppliers. In spring 2024, Senate will host info events focusing on procurement for suppliers in Rovaniemi, Oulu, Kuopio and Kouvola. The events will continue in other places in the autumn.
In development work, it is important to examine the rational dimensioning of requirements for procurement and to lower the threshold for submitting tenders. In addition, the aim is to streamline the Group’s internal processes, remove unnecessary bureaucracy and improve communication related to procurements.
One of Finland’s largest public contracting organisations – employment impact nearly 13,000
Senate Group and its unincorporated state enterprise subsidiaries are among the largest public contracting organisations in Finland. The Group’s total procurement in 2023 totalled around €1,020 million. Total procurement increased compared to the previous year, mainly due to an increase in construction investments to €657 million. In addition to construction investments, Senate’s largest purchases include property maintenance procurements of €294 million.
Senate Group carries out procurements responsibly, systematically and effectively. In the Group’s operations, service providers play an important role in the services provided to customers. Senate Group employs actors in the real estate and construction sectors in particular, and the employment impact of the purchased services was nearly 13,000 full-time equivalents in 2023.
