Business
Unlocking the Benefits of the Tendering Process

Tendering procedure is a common business mechanism used by public and private institutions to conduct business effectively. The main purpose of the tendering procedure is to obtain goods and/or services at competitive prices from suppliers. The main purpose of the process is to create transparency, competition and increase value added buying to the buyer while creating business opportunities to grow for the suppliers. In this article, we shall throw light on the most important advantages of the tendering process.
The growing use of eProcurement and tendering websites all around the world has been due to the ever increasing advantages of a tendering process. While tendering effectively through an online or offline medium is a choice organizations make, the whole process of publishing bids and inviting companies to send their quotations is widely recognized as a value added activity by organizations worldwide. In this article, we shall look at the key benefits and advantages offered by a tendering process and discuss why they are so important for organizations. Organizations may use tender website and aggregator services like Tender Impulse to gain all the information posted on public procurement all over the world. Due to the sheer volume of information posted worldwide, it gets difficult for companies to monitor such information daily and there is a high possibility of missing out on crucial business development leads. Therefore, companies employ services of tender websites that aggregate such information from global tendering authorities and post it on their database. The use of such a database significantly reduces the burden of searching and narrowing down a tender for companies who rely on such leads for their business development. Apart from that, the below are some of the major benefits of using a tendering process from the authority and bidder’s viewpoint.
Table of Contents
Fair Competition:
One of the major benefits of a tendering procedure is its ability to offer fair competition. With the advent of electronic procurement, tendering procedures are conducted via an online portal known as the electronic portal which eliminates any risk of corrupt activities. The entire process is transparent and made available to all suppliers thus ensuring fair competition. Through the process of inviting bids, organizations ensure they get value for money by comparing the best available option in the market that meets their requirements at a competitive price. It also creates room for innovation as bidders try to supplement add-on services/products for better value proposition.
Transparency & Accountability:
The use of electronic tendering procedure calls for more transparency and accountability amongst the tender issuers. The tendering procedure is created to provide a manageable framework for decision making amongst the authorities. Through documented requirements, technical specifications and timelines the authorities can ensure the process is conducted in a sophisticated manner. The entire process reduces the likelihood of disputes or accusations arising out of bias.
Cost Savings:
The entire activity of conducting a tendering process for buying of goods and services saves a lot of money for authorities in many ways. Through a competitive bidding procedure, organizations can not only procure the products for the best price, they can also the best value for money.
Expertise & Innovation:
The use of a competitive tendering procedure causes significant innovation amongst competitors who use innovative ways to provide the best solutions. Moreover, it also leads to expert consultation to the authorities who can get the best value for money products at the most competitive prices. In largescale projects pertaining to infrastructure and consulting and even IT, this is a significant development as innovation and expertise are pillars behind successful infrastructure projects. The use of criterion such as financial stability, technical capability and past performance further ensures that contractors give their best output to the authorities/buyers.
Risk Mitigation:
For large purchases involving public authorities, the use of a tendering procedure decreases the risk of the authorities since it undergoes a formal procedure. Moreover, the process allows for a selection of a reliable and capable supplier thus ensuring minimum project delays, sub standard quality or cost overruns. By undergoing a formal tendering procedure, authorities ensure the risk of the project is kept at a minimum.
Legal & Ethical Compliance:
The use of a structured tendering process gets things documented and all suppliers alert about the details of the proposed contract. Due to this, there are little or no legal or ethical issues arising out of the purchase. Given that the majority of tendering procedure is followed by public institutes who are prone to legal and ethical issues, the use of tendering saves the authorities from such compliance problems and sets the board clear for the purchase.
The above article highlights the basic advantages and benefits of using a tendering system for both contractors as well as authorities. In conclusion, it can be said that the tendering process offers many advantages to both the parties involved in a contract and offers a structured approach to buying goods or services from the market as well as increasing competition, fair play and innovation amongst the competitors. It is always a good idea to use a tender website to obtain the information on tenders from a contractors perspective whereas the increased and sophisticated use of e-procurement platforms makes it convenient for authorities to use the electronic format effectively.

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