Accounting for the regional aspect is an advantage for markets and customers

Hansel’s activity and its framework agreements, worth over €770 million, have a direct impact on the operation of the various markets. Hansel’s financial responsibility includes consideration of the operational capabilities and regional aspect of small and medium-sized enterprises (SME) in all of its activities. Behind this principle lies the desire to improve the functioning of the marketplace and to increase competition.

In selecting the method of implementation for bidding processes, Hansel pays attention to the needs of the customers and improving the operation of the marketplace. Because Hansel’s customers often have large procurement volumes, it can be difficult for small companies to meet the order volume. This is why acquisitions can be divided into smaller units. Hansel has also enhanced SME participation by encouraging the use of subcontractors and the establishment of consortia. However, tendering processes are not especially targeted at SMEs; instead, the winner is always the supplier or consortium that has made the most affordable offer in terms of quality or price.

The framework agreement on accommodation services covers all of Finland

A regional tendering process is arranged for approximately 10 per cent of Hansel’s framework agreements. In regional bidding, the tenderer only competes in its own region instead of a nationwide tendering process. Framework agreements included in regional tendering processes include accommodation services that fulfil customers’ accommodation needs whilst promoting competition.

“If only one supplier or a few suppliers had been selected for the framework agreement, we would have excluded many small, local entrepreneurs from the bidding process. In such a case, only large chains could have been chosen, and no chain has an offering extensive enough to cover every part of Finland.

With this regional tendering process, we managed to include extensive accommodation offerings from around the country into this framework agreement,” says Minna Isoherranen, Category Manager for accommodation and conference services.

In this bidding process, Finland was divided into areas according to regions and localities. Larger cities were further divided into postal code regions, so accommodation possibilities were arranged near Helsinki Airport, for instance. The same operating model was used in the framework agreement for accommodation services in Brussels, where accommodation is offered in the Commission’s and Parliament’s neighbourhoods, in the city centre, and near the airport.

“Our customers have been satisfied with the offering. The regional tendering process brought along several smaller operators, such as the Sannäs mansion hotel in Porvoo, and Hotel Anna and Hotel Helka in Helsinki. One new accommodation provider from Brussels was the family-owned Hotel Leopold.

“It may be even easier for a small operator than chains to adapt to the contractual terms offered by Hansel to its customers. We have also facilitated the entry of smaller operators by making the use of the reservation system optional in the regional comparison areas,” says Minna Isoherranen.