Joint procurement

At the end of 2020, Hansel had 83 framework agreements, 21 dynamic purchasing systems and four small-scale procurement services (at the end of 2019, 66 framework agreements, 12 dynamic purchasing systems and three small-scale procurement services). There were 642 contractual suppliers at the end of the year (478 in the previous year).

Hansel’s largest joint procurement entity was IT consulting. This dynamic purchasing system totalled EUR 101 million in procurement (EUR 91 million in 2019). The second largest group was food and non-food products, at EUR 68 million (EUR 11 million in 2019). The third largest was occupational healthcare services, at EUR 62 million (EUR 68 million in 2019).

Measured in euros, the main users of Hansel’s joint procurement framework agreements were the administrative branches of the Ministry of Finance, the Ministry of Defence, the Ministry of Education and Culture, and the Ministry of the Interior. Of municipal customers, the cities of Jyväskylä and Porvoo were the largest.

The government’s electricity procurement is handled centrally through Hansel’s framework agreement and involves derivatives that hedge against changes in electricity prices, in accordance with the government’s electricity hedging strategy. Hansel is responsible for the management of this portfolio and is the counterparty to the derivative agreements on behalf of its customers. For Hansel, electricity derivatives trading is a pass-through item, and all the related expenses and income are charged for in full from Hansel’s portfolio customers (see Note 5.2).

Tendering services

The total value of tendering services sales in 2020 was EUR 2.0 million (EUR 1.7 million in 2019). There were 183 chargeable tendering projects in 2020 (189 in 2019), with a total value of approximately EUR 535 million.

Procurement development services

The value of procurement development services was EUR 417,000 (EUR 345,000 in 2019). Most of the development assignments involved control and organisation of procurement, analyses of key indicators and current status, planning, contractual management, development of supplier cooperation and responsibility. The procurement development unit was also actively involved in the operations of the Competence Centre for Sustainable and Innovative Public Procurement (KEINO). In 2020, related income amounting to EUR 162,000 was recorded in Hansel’s other business profit.