ITO (Invitation to Offer)

ITO, or Invitation to Offer, is a strategic procurement practice through which suppliers are invited to respond to the demand of a buyer for specific goods and services. It’s a process that allows buyers to select the best supplier for their particular need from those who have submitted an offer to provide them with goods and services. ITO is typically used when buyers want the most competitive price and best quality of service within a given timeframe and budget. The process allows buyers to clearly specify their business requirements and evaluate potential suppliers carefully before making a purchasing decision. Additionally, it also allows suppliers to better understand the buyer’s needs and tailor their offers accordingly, ensuring an efficient and cost effective outcome for both parties.