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.
- To reduce costs
- To benchmark internal costs against the market
- To get an apples to apples comparison of product or service
- To receive indicative costs for budgets
- Testing the market to see if the product or service exists
- To setup a panel arrangement – to appoint pre-qualified suppliers
- Because procurement require 3+ quotes for corporate governance
- To get more value for money
- To gain innovative solutions
- Free consulting
Feel free to add other reasons to this list.