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Why do Companies Tender?

3 minutes of reading

Why Do Public Sector Organisations & Private Companies Tender Contracts?

The tendering process can be very frustrating. Sometimes, you may feel that companies use tenders just to annoy you! However, there are some simple reasons and it is very useful to understand why companies tender.

The previous post Tender Procurement Process explains the various steps that form a typical tender. It helps put the following points into perspective.

Why do Companies Tender?

Best Performer Wins

Tendering involves a competition where several potential suppliers compete against a set of criteria including:

  • Specification or requirement
  • Quality
  • Price

These are measured so the best scoring bidder(s) wins the contract.

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Why do Companies Tender? Read More »

Tender Process & Procurement – Tendering Process Explained

5 minutes of reading

This guide to the tender process and procurement draws together many previous posts to provide a full understanding of the tendering process. Hopefully, it will help you to be more successful with your tender bids!

The Stages of the Tender Process

The chart below shows the various steps that form a typical tendering process for a large contract. Smaller value contracts may be simpler.

Tender Process & Procurement - Tendering Process Explained

Form Procurement Team

The procurement team will typically involve:

  • Procurement
  • The budget holder
  • Others involved in managing the contract
  • Possibly representatives from health and safety, human resources, quality management etc.

TIP: The higher the value of the contract, the bigger the procurement team – often involving senior management. Also, the tendering process becomes more drawn out. The same applies to high-profile purchases.

For example, a very high-value contract, or one that involves contracting out for the first time, will often involve a large team (including directors). And it will have a full tender process (as shown in the chart). Conversely, smaller contracts may have a much simpler tender procurement process. You see this in the public sector. Higher value contracts must be advertised. Smaller jobs can be let via a mini-tender.

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Tender Process & Procurement – Tendering Process Explained Read More »

The Importance of Relationships When Tendering

3 minutes of reading

In its simplest terms, tendering is a formalised process for buying and selling. Everyone knows how much a good business relationship can help improve your chances of success when selling. But due to the formality of tenders, it can be difficult to even talk to someone once the tender is out – let alone build any decent relationships.

The Importance of Relationships When Tendering

Pre Tender Meetings (Tender Briefing Meetings) can be used to develop relationships during the tendering process. However, it should be your aim to start building relationships with your prospect well in advance of the tendering process.

Pre Tendering Relationships

Generally when selling higher value or more complex goods or services, you start trying to develop a relationship as part of the sales process; ideally you will have built a relationship before you try to make the sale. The reasons for this include:

  • Building trust
  • Understanding your prospect’s needs and problems
  • Your prospect gets to know your organisation’s abilities and benefits

Tenders are generally used for higher-value contracts. So, the same benefits of relationships that apply to selling can apply to tendering. Your relationship may also be able to influence the tendering process i.e. help the prospect in deciding what specification to tender for.

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The Importance of Relationships When Tendering Read More »

Supplier Registration Service for UK Government – Simplifying Tendering

2 minutes of reading

A Supplier Registration platform was launched by The Cabinet Office in March 2013. The aim was to simplify the tendering process for public sector contracts

The Supplier Registration Service for Government

Previously, to bid for public sector and government contracts, suppliers had to register on many different systems to view, access and tender for business opportunities. This makes tendering more difficult – increasing time and costs.

The new centralised system aims make bidding for government and public sector opportunities easier and cheaper. The Single Supplier Registration enables suppliers to register just once to gain access to a range of contracts.

Full details at the Cabinet Office.

The new Single Supplier Registration platform was available from April 2013 for the health sector (replacing the existing SID4health system) and was extended across other sectors in the following months.

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Supplier Registration Service for UK Government – Simplifying Tendering Read More »

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