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Benefits of Tendering System

Posted on: 04th Mar 2020 (#ref: 1)

Benefits of Tendering

A Tender is a formal, structured invitation to suppliers/ contractors/ service providers for supply/ provision of products or services, it is essentially a transactional model whereby large organizations, companies, government bodies and non-profit organizations find suppliers and contractors for particular projects or procurements. Therefore, it can be said that tenders form the base of the bidding process is used by both public and private institutions.

The Advantages of Tendering are:

• Tenders often encourage innovations that enhance the efficiency and lower costs of the manufacturing processes. Tenders provide companies with an opportunity to re-evaluate pricing structures and incentives in order to adopt up to date business practices.

• Tenders aim to provide the best possible value for money outcome for the clients. When the issuer of the tender is a government body, this saves precious taxpayer money. In the case of private organizations, this process safeguards the interests of the stakeholders.

• Tendering also monitors current suppliers and contractors and prevents complacency and fall in quality.

• The tendering process stimulates competition in the market and gives the client a large pool of bids to choose from.

• It also gives new firms/companies the chance or opportunity to enter the market by winning a prestigious contract on the basis of merit, even without any prior contacts or connections in the industry.

So, if you want to know about the latest national and international tenders floated in every sector of the economy, you should log on to a reputed online portal like that provides up-to-date information that are awarded on the basis of predetermined criteria such as price and quality.

Therefore, a new firm with no prior connections in the industry can win a prestigious tender by providing the greatest value for money. This reduces the chances of favouritism and nepotism significantly. This approach helps to play fair and level the playing field in the business world, as a result of which even a small company can win a big global tender by maximizing efficiency and productivity and lowering costs.