Savings for society

Hansel has a societally important and responsible task: to generate savings and effectiveness in government procurements.

It has been calculated that central procurement alone yielded savings of €267 million in 2016. The model used in the calculation is based on a study conducted at the Helsinki School of Economics (Karjalainen et al. 2008)1 2008), which indicated that, compared to distributed procurement operations, use of a centralised operational model in procurement generates significant savings of approximately 20-25 per cent. The calculation model also includes calculations of the potential of Hansel’s framework agreements, but does not account for factors such as use of working time, the costs of dividing resources or the competence deficits that may be caused by distributed operations.

As Hansel does not pursue profits, the efficiency of the company’s operations can also be measured through reductions in the service fees charged from contract suppliers. Currently, the maximum service fee that can be charged is 1.5 per cent of the contract value. The average service fee in 2016 was 1.06 per cent.

1This research was conducted using Hansel’s central procurement figures for 2006 and concluded that the savings already achieved that year amounted to approximately €95 million. It also suggested that if all potential central procurement were conducted in a fully centralised manner, savings could rise to 25.7 per cent. As it was assumed that a 100 per cent utilisation rate could not realistically be achieved, this figure was viewed as a theoretical maximum value for savings through central procurement. The study estimated a utilisation rate of 80 per cent to be realistic.