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Tendering procedure: Definition and important aspects for buyers
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Tendering procedure in a nutshell:
A tendering procedure is a structured process for obtaining and evaluating offers from several potential suppliers for defined services or products. For purchasing, this enables transparent supplier selection, optimal market prices and fair competitive conditions.
Example: An automobile manufacturer conducts a 3-month tender for electronic components, in which 5 qualified suppliers apply, whereby a new main supplier with 15% more favorable conditions is selected after a structured evaluation of price, quality and delivery capability.
Contents
What are tendering procedures?
Tendering procedures are structured processes in purchasing in which companies communicate their requirements for goods or services publicly or specifically to selected suppliers. The aim is to obtain requests for quotations in order to obtain the best conditions in terms of price, quality and delivery terms. Invitations to tender promote competition and create transparency in the procurement process.
Core elements of a tendering procedure
Relevance for purchasing
In the purchasing process, tendering procedures are essential in order to obtain competitive bids and organize procurement efficiently. They make it possible to realize cost savings, improve the quality of supplier relationships and ensure adherence to compliance guidelines. They also help to minimize risks and increase transparency within the procurement process.
Guidelines: Legally compliant implementation of tendering procedures in the public sector
Tendering process: From manual tenders to digital tender management
Tendering procedures are an essential part of strategic purchasing in order to select the optimal supplier in terms of price, quality and performance. Traditionally, these procedures were carried out manually, which was time-consuming and limited transparency. In view of increasing demands for efficiency and competitiveness, there is a growing need to modernize tendering processes. The transformation to digital methods offers companies the opportunity to make their procurement costs much more effective.
Old: Manual tenders
Traditional approach: In traditional practice, tender documents were created manually and sent to potential suppliers by post or email. Communication was mainly by telephone or in writing, which slowed down the process. Tenders were returned in paper form or as email attachments and had to be recorded and evaluated manually. This method was not only time-consuming, but also prone to errors. In addition, the lack of standardization led to difficulties in comparing bids. The limited scope and restricted competition had a negative impact on the buyer's negotiation techniques.
New: Digital Tender Management
E-tendering: With the introduction of e-tendering systems, the tendering process is completely digitalized. Modern platforms make it possible to create, publish and manage tenders online. Suppliers can submit their tenders directly in the system, creating a standardized database. Innovations such as automatic bid comparisons, electronic communication functions and integrated compliance checks significantly increase efficiency and transparency. Practical benefits include shorter lead times, reduced administrative effort and an expanded supplier selection thanks to global reach. Digitalization also enables real-time analyses and supports strategic decision-making processes in purchasing.
Practical example: Introduction of e-tendering at a mechanical engineering company
A medium-sized mechanical engineering company has successfully digitalized its tendering process. By using an e-tendering platform, the processing time for tenders was reduced by 50%. The number of participating suppliers increased by 30%, which led to increased competition and better conditions. The automated evaluation of tenders made it possible to quickly identify the optimal supplier. Overall, the company achieved average cost savings of 20% per procurement process and increased transparency and traceability throughout the entire process.
Conclusion on supplier evaluation
Tendering procedures are indispensable instruments of modern purchasing that ensure transparency, efficiency and compliance. Through structured processes and clear evaluation criteria, they enable optimal supplier selection and cost control. While traditional procedures can be time-consuming, digital solutions and new technologies increasingly offer opportunities to increase efficiency. The success of a tendering process depends largely on the precise definition of requirements and professional process management.
