31 July 2013,
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Many companies release open or closed tenders to the market on a daily basis. Open competitive tendering is where the tender is available publicly for all interested suppliers to respond.  Closed competitive tendering is where the tender is issued to a restricted number of suppliers.

Below are ten common reasons why a company may release a tender document.

  1. To reduce costs
  2. To benchmark internal costs against the market
  3. To get an apples to apples comparison of product or service
  4. To receive indicative costs for budgets
  5. Testing the market to see if the product or service exists
  6. To setup a panel arrangement – to appoint pre-qualified suppliers
  7. Because procurement require 3+ quotes for corporate governance
  8. To get more value for money
  9. To gain innovative solutions
  10. Free consulting

Feel free to add other reasons to this list.

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