E-Tenders are an integral part of the procurement process, designed primarily to facilitate an effective method of procuring goods and services online. With E-Tendering, businesses can find the most cost-effective suppliers for upcoming purchases. Suppliers compete to win sales or provide business services in response to procurement opportunities. The etendering process can be completed end-to-end on an eprocurement or esourcing software.
With this entirely digital framework, it enables a more seamless, controlled procurement process, which allows the procurer to manage and evaluate bids with ease.
e-Tendering (electronic tendering) refers to the use of a technology platform to solicit proposals from suppliers and evaluate them via an online framework (e-Procurement). Paperless e-Tendering consists of soliciting bids, evaluating bidder proposals, exchanging documents, and ranking short-listed potential vendors and their proposals.
After the buyer has reviewed a formal requirements document and approved it (e-Informing), some vendors are prequalified or shortlisted (e-Sourcing), the e-Tendering stage of the electronic procurement process begins.
In the context of e-tendering, an invitation to tender (ITT) or notice inviting tender (NIT) is sent to potential suppliers in response to a purchase request that may take place through an Internet-based, online, or mobile software platform.
E-tendering facilitates the submission of the necessary information in response to an official request for proposal (RFP) within a specified deadline, generates and exchanges documents with e-signature and messaging, and evaluates bidders for the procurement opportunity.
In the event that the vendor is selected, the finalized e-Tenders will be legally binding. It is important to note that although submitted tenders may summarize final terms and conditions, the eProcurement process can include negotiating terms and pricing and conducting auctions before selecting a vendor.
The documents can be accessed by authorized personnel throughout the organization, since they aren’t owned by one person on their local device. In accordance with company policy, information viewed during the e-Tendering and eProcurement processes should not be divulged until a contract has been awarded.
E-Tendering may be required by organizations for the purchase of goods or services exceeding specific dollar thresholds or procured from a specific source.
Electronic tendering eliminates the costs of paper and printing for requests for proposals and contracts, as well as manual processes.
By eliminating paper costs, it is also possible to avoid the need to later send a corrigendum, which is a central listing of errors to be corrected. The e-Tendering platform allows any errors to be corrected online through e-mail communication.
Businesses can eliminate time-consuming tasks and fraud by accessing digital data integrated into eProcurement, AP automation, and ERP systems, and making global mass payments electronically.
In using online requirements for a purchase, the tendering process is streamlined and sped up, enabling published deadlines to be met without requiring a postponement.
E-tendering allows the buyer to obtain bids from vendors who are well-qualified and competitively priced. A tendering system that is electronic is paperless, saves procurement time, has clearly defined steps to complete, and incorporates an online repository of procurement documents.
An electronic tendering system allows potential suppliers to respond to bid requests in a secure manner. An e-Procurement platform is their means of obtaining new business.
It may be possible for entities to meet ESG (environmental, social, governance) goals through e-tendering.
E-Tendering ensures that important contracts have formal purchase requirements, allowing for a competitive bidding process with wider participation from potential vendors.