Since 2013, the rapid development of e-procurement and sales began in Ukraine. The result was the creation of fundamentally new business sectors and a whole ecosystem of services designed for the interaction of suppliers with customers. So which of the markets to choose and how to make a choice? Our webinar, organized jointly with DoZorro, will help to understand.

In addition, below, for those who like to read, and not watch the video – the main points and answers to the main questions.

Public Procurement

Until 2018, the number of unique organizers in public procurement increased, and now it is decreasing. Therefore, the market has already stabilized. Moreover, the number of participants is only growing. In 2018, there were 148 thousand, and in 5 months of 2019 – about 107 thousand.

In 2018, tenders worth UAH 673 000 000 000 were completed (brought to delivery and payment). Compared to 2017, in 2018, the number of successful purchases increased by almost 20%.

Perhaps the biggest advantage of public procurement is the availability of tools of appeal and clear rules established by law. All this, together with the direct prohibition of discriminatory requirements, improves the position of the participant. However, it is worth remembering that the submission of proposals in the ProZorro system provides for payment, the amount of which depends on the procurement budget.

Conclusion: ProZorro system protects the interests of suppliers, but they will have to pay for participation and prepare extensive tender documentation.

Separation by Type of Item and Format

Noncompetitive procedures:

51% goods;
25% services;
24% works.

Competitive procedures:

42.4% goods;
11.4% services;
46.2% works.

The figures are approximate, as some codes in the classifier cover both goods and services. Data that are more accurate at the end of 2019. Non-competitive procedures are more in quantity (about 75%), but in competitive ones, the total budget is larger (approximately 70% of all purchases).

Conclusion: more money can be earned exactly where there is competition, but for everyone, there is a niche.

Commercial Purchases

Now more than 300 commercial customers are operating on the SmartTender platform, mostly large ones. The volume of purchases is significant, more than UAH 280 000 000 000 only for 2018.

Business executives optimize purchases using transparent electronic trading, automate processes, compare costs by period and adjust electronic documentation, transparent reporting. The last point is very important for potential investors, especially foreign ones.

Conclusion: powerful domestic business prefers electronic trading, and the volume of commercial purchases in Ukraine is significantly higher than the volume of public tenders.

However, the commercial market has a drawback - the lack of a single regulation. Procedures do not have to go through transparent mechanisms, because no one has canceled a commercial secret. In addition, the organizer may establish such requirements for participants deemed discriminatory in public procurement.
Conclusion: the customer is not obliged to choose the best price, and can even make his own blacklist of suppliers.

Dynamics

The market for commercial trading is growing steadily. For example, in 2015 – this is 300,000 purchases, and for 2016 – 870,000. In 2017, this figure exceeded a million – 1,030,000 tenders. In 2018, there were 1,560,000 purchases.

Suppliers are now about 224,000. Participation in the procurement of commercial customers for them is free. All participants in state tenders on our site have the opportunity to also participate in commercial procedures.

Conclusion: the market has significant prospects and does not require additional costs from the participant, and most importantly, it is possible to participate in both state and commercial procedures.

Analytical Tools in Procurement

Public module analytics BI DoZorro created for the reason that the system ProZorro began to generate huge amounts of data. Access is free for all users.

The module is focused not only on government procurement but also on helps to develop the commercial market. For example, it can shed light on the real volumes of this market, the number of participants, the dynamics of the main indicators. The service also allows you to evaluate competition, pricing and risk factors.

Conclusion: having a free powerful analytical module, a bidder can increase the percentage of victories in bidding.

Important! The prices shown by the analytical module are indicated taking into account logistics because public procurement provides for mandatory transportation of the subject of procurement to the customer. This should be taken into account when making proposals on the module database. The service for calculating the cost of delivery for non-multi-lot procedures by the four largest logistics companies will help.

Conclusion: thanks to the regular creation of new services, it becomes easier for participants to predict costs.

It is useful to analyze the activity in the standard procurement of the selected industry. This will give an idea of the possible competition. You can also see where there were not enough participants for the procedure – there is no competition. To do this, the DoZorro has the appropriate instructions.