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Electronic tendering: Definition and important aspects for procurement specialists
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Electronic tendering in a nutshell:
Electronic tendering is a digitalized tendering process in which requests and offers are exchanged and managed via electronic platforms. For procurement, this enables more efficient processing of tenders, increased transparency and automated comparability of offers.
Example: An automotive manufacturer conducts an electronic tender for fasteners, with 12 qualified suppliers submitting their bids via the e-tendering platform within 14 days and the system automatically generating a comparison matrix that shows a cost saving of 18% compared to the previous manual tender.
Contents
What is electronic tendering?
Electronic tendering, also known as e-tendering, refers to the digitalized process of tender management and awarding contracts in procurement. All phases of the procurement process, from the publication of the invitation to tender and communication with potential suppliers to the submission and evaluation of bids, are carried out electronically. This enables a more efficient, transparent and legally compliant handling of procurement processes.
Core elements of electronic tendering
Significance for modern purchasing
Electronic tendering is an important part of modern procurement management. It helps to speed up procurement processes, increases transparency and promotes competition between suppliers. The use of electronic systems can reduce errors, cut costs and make it easier to comply with legal requirements, which contributes to more efficient procurement strategies overall.
e-Procurement: From traditional tendering to electronic awarding
Building on the theoretical basis of e-tendering, it becomes clear how important digitalization is in the procurement process. In practice, it offers the opportunity to make tendering procedures more efficient, transparent and cost-effective. The transformation from paper-based procedures to electronic processing is necessary in order to meet the increasing demands for speed and traceability in the modern procurement world.
Old: Traditional tender
Traditional approach: In the traditional tendering process, award guidelines were carried out manually and on paper. Companies received tender documents by post and submitted their tenders in physical form. Communication between the client and bidders took place by telephone, fax or written correspondence. This procedure was time-consuming and error-prone. The manual recording and evaluation of tenders often led to delays, and the storage of extensive documents was associated with high costs. There was also a lack of transparency, as process steps were difficult to follow and access to information was restricted.
New: Electronic awarding of contracts
Electronic tendering: Modern e-tendering is revolutionizing the procurement process through the use of digital platforms. Contracting authorities can publish tenders online and bidders submit their bids electronically, often using a qualified electronic signature. Points of innovation include automated bid evaluation, real-time communication and the integration of compliance functions. Practical benefits can be seen in the acceleration of award procedures by up to 40%, the reduction of process costs by up to 30% and the improvement of data integrity. Electronic archiving also facilitates traceability and fulfills legal documentation requirements.
Practical example: Digital transformation at Bau AG
Bau AG, a leading construction company, implemented e-tendering for its procurement processes in 2021. The changeover enabled them to reduce the tendering period from an average of 60 to 35 days. The number of bids received increased by 25%, which is due to the simplified participation via the online platform. In addition, annual savings of over 100,000 euros were achieved, particularly due to the elimination of printing and postage costs. The improved transparency led to a higher compliance rate, and internal audits increased process reliability by 15%. This example underlines the considerable benefits of e-procurement in practice.
Conclusion on digital procurement
Electronic tendering is revolutionizing modern procurement through digitalization, automation and increased transparency. It not only enables more efficient processes and cost savings, but also creates the basis for data-driven decisions in procurement. Despite initial implementation challenges, the long-term benefits clearly outweigh the risks. With the integration of new technologies such as AI and blockchain, e-procurement will continue to play a key role in strategic procurement in the future.
