In the course of reform events the BBG Bundesbeschaffung GmbH (federal procurement corporation of Austria) was founded as a 100% daughter of the Bundesministerium für Finanzen (state ministry of finances). The reform goals of this association are to create synergy effects through bundling the former decentral procurement structures, to ideally take advantage of the federal procurement position and to consider the regional supply structure of small and medium sized businesses. In January 2006 the BBG put a web shop into operation, which is unique in Europe. It is a highly modern e-procurement system being used by all federal authorities.

Return on investment

Return on investment: Not applicable / Not available

Lessons learnt

Promotion of regional suppliers: The e-procurement system especially bears in mind the small and medium-sized businesses. Companies without electronic ERP systems can integrate their products easily into the shop via a pdf document. By e-mail they get informed about orders and via the web portal they can approve them. Especially small companies thus acquire precious know how about electronic business transactions. Suppliers with ERP systems can automatically exchange their data in XML format with the shop. Because of the workflow the companies can be sure all orders are authorized. Regional small and medium-sized businesses are supported by regional filters: A teacher from Tirol sees in "his" shop mainly products of local suppliers. Like this the e-shop offers a better chance for small suppliers. In Austria already today the future of procurement has been realized. A role model for other countries.

Scope: National