E-procurement in Brazil`s state governments

E-procurement in Brazil`s state governments

Tridapalli, Juarez Paulo; Machado, Waltair V; Fernandes, Elton

This chapter examines how Brazil’s public sector is structuring its goods and service supply chain management (SCM) using information and communications technology (ITC) and electronic government (egovernment) to recover its capacity for direct investment. Widespread use of electronic procurement alone has not assured that all the potential for rationalizing current expenditures is being explored in Brazil. Discussions and solutions have largely been limited to that narrow scope. Brazilian researchers and technicians are pushing for the subject to be addressed more broadly and for egovernment to contemplate the whole supply chain. The intention in this text is to outline alternative manners of broadening this scope in the Brazilian context and to underline its importance in rationalizing public spending. This approach to the issue is important considering that, over the past 5 years, the direct investment capacity of Brazil’s public sector has averaged a scant 3.0% of total budget. Direct government procurement totaled R$247 billion in 2007 – R$194.7 billion in current expenditures and R$52.5 billion in capital expenditures – representing around 14.2% of total spending or 9.5% of GDP (BRAZIL, 2009). The topic addressed here comprises tools with the potential to improve these figures as well as to enhance management transparency and expedite activities. These gains can be made to occur at all stages of the logistics process.

Amazonas Federal University (FT-UFAM), Brazil

2010

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