The Terms in Procurement Glossary RFX RFP RFQ Management

 

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Procurement is a long process and tedious process and so as the RFX. RFX is stand for Request for Information (RFI), Request for Proposal (RFP), Request for Quote (RFQ), and Request for Bid (RFB). RFX is has varied complexity level depending on the requirement of project and inclusion of the factors like how complete the requirement is? How many suppliers are participating? And how much competition is in supplier base.

Each kind of the RFX has a diverse primary goal. The major goal of an RFI is to make best use of potential assessment points while keeping contractor evaluation costs low. The end objective of an RFP is to decide which suppliers are promising to be the most competent of meeting organizational requirements and to choose those suppliers that should be invited to offer bids. The ultimate goal of an RFQ, and an RFB in the public sector, is typically to make an award decision.

RFX+Variants+Request+for+Quote+Request+for+Proposal+RFQ+++eAuctionThe RFX procedure is often facilitated by an e-RFX platform that enables and automates the RFX process. Although there are different dissimilarity between any sampling of RFX platforms & products that a purchaser may select to review, there are a number of commonalities as well. The majority of platforms have a centralized data repository, templates for frequent bids & quotes, survey support, workflow capability, and side-by-side reporting.

Moreover, the more pioneering technologies will arrive with supplier portals that will connect your suppliers in the selection procedure.  Not only will they be able to go into their information directly, but they will be able to present suggestions and collaborate with you on process enhancements and innovative thoughts to make more efficient product innovation.

When it comes to improvement, RFX is now one of the least pioneering technologies on the market, but still one of the most significant.  The more time you have to concentrate on strategic planning versus tactical functions, the more likely you are to spot innovative results that will accumulate you bushels of money and boost the overall worth of your awards.  RFX was one of the large breakthroughs in strategic sourcing automation – & so was the additional introduction of collaborative supplier platforms.  The next most important innovation will be the incorporation of business intelligence that will let you distinguish supplier feasibility and value before your initial interaction, so you do not waste time viewing suppliers already recognized to be unsuitable to your line of business.

Open source procurement and Automation

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Every organization required track purchase goods and services. Centralized software solutions have a high up-front licensing fee, expensive implementations, and the level of organizational training necessary to get the full value out of an enterprise-class procurement solution and for that reason, small businesses reject using.

Why do organizations need to automate purchasing?

Purchasing of the goods and services are a very time-consuming process in an organization. The manual process often leads to the mistakes and delays. Many small and midsize businesses (SMBs) can’t justify the cost of software. End-to-end procurement process consists of identification of need, an issue of RFP, response of supplier quote, turned into a contract, and purchase order. E-procurementsolutions automate the whole process and save the time and make it hassle free. It also saves the cost if implemented correctly. Reduce the complexity of transactions. Save organization or company from corporate abuse and fraud. Electronic Tendering System improves operating efficiency. The entire procure-to-pay process is automated by e-procurement solutions. It is clearly proved that automation of purchasing in a business organization helps to make the process effective and efficient.

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What is open source procurement?

Small and midsize businesses are also required to make their procurement process easy and efficient to reduce expenditure. But also, the cost of enterprise software is very high and they are discouraged not to use these kinds of solutions. Open source procurement helps these businesses to adopt a solution that does not cost them high. Open source procurement solutions offer a simple and quick way to improve their purchasing processes.

What will an e-procurement solutions consist of in open source procurement?

Most of the e-procurement solutions are able to provide support to specific procurement process in an organization. It includes

  • Supplier management
  • Product catalog
  • Purchase order management
  • E-tendering functionalities

It provides

  • Budgeting
  • Purchase requests
  • Approvals
  • Document management
  • Asset management features

Digitization and the Internet have changed many things and so as the purchasing of goods and services in a business as well. Every business required to grow to cope up with the big competition but also required to cut the cost. Electronic Tendering System and e-auctions have been taken place of the manual one and so as the organization adopted the web. Open source procurement leverages the small organizations to keep finances in control. These solutions and systems are fully reliable and efficient. Implementation of emerging technology is always the best way to keep up to date with the world.

Lotus Procure made e-Tendering very easy and effortless.

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Convention tendering is very complex and tricky process, and when it comes to any large organization this manual method of tendering become more stressful. After the introduction of e-procurement, most of the processes become less hectic and less stressful. Implementation of e-procurement helps at all the level of company environment.  After the digitization in all the sectors, it was very crucial to serving digital economy in procurement sector as well. Now it has helped with better control, productivity, reduced cost and higher security.

Lotus Procure improved visibility, better control, and fair financial deals in e-Tendering. It manages tendering process online and this has been improved the accessibility of tenders. Enable people to download the tender and then submit the bid using this system without moving or taking so much time. The objective of offering this system is to provide the best value of the money via secure and transparent procurement process. All the multiple procurement needs are fulfilled and handled very effortlessly by the use of e-tender system. Lotus Procure helps to automate the tendering procedure.

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In this system firstly suppliers are invited to sign up in the system. This is called the registration process and it is free of cost. Lotus procure is an online internet based tendering system which provides secure access through unique “username” and “password” to each qualified organization. This system is available in English.

Once registered sellers can update their provided information anytime and are recommended to change their “passcode” regularly.  Part of the registration method is the recognition of the varieties and classes of goods or services that the corporation is actively offering or selling, using a standardized categorization list offered by the system.  This will guarantee that the organization will be able to obtain information regularly about ITBs, market surveys, RFPs, RFQs, notices of the award of contracts, and other data information that is directly significant to the existing business portfolio.  All the relevant information is exchanged in digital form.

After registering in the system, a supplier can view the list of tender contracts, awarded contracts, able to quote for tender, able to receive contract information and documentation and send and receive correspondence.  Getting started with this system is not that tough, through the tender option supplier can browse the list of tenders and contracts and able to get details in which you are interested. All the tender information is provided in sorted form.

Lotus Procure is the best assistance in the complex tendering process and helps you to reduce the stress of the tendering process and make every step effortless for you. It makes you more focused for a winning bid or finding a contract that matches with your company portfolio. By using Lotus Procure web based e-tendering solution, the intensive task of tendering will become faster and easier. Be the part of the revolution and make better future for your organization.

Electronic Tendering Bidding system & e-Tendering Invoice system

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E-tender system is a virtual tender platform between buyers and suppliers. It is an online interface which makes advertise about the commercial, governmental and global tenders. So this kind of system makes advertisements about upcoming tenders in which you are interested. The system used to make suppliers aware about the tender is known as E-tender alert services.

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The electronic tender system replaces the old manual tender system and creates an efficient environment for both tender buyers and suppliers. It automates the process and overcomes the drawbacks of old ones. Also, the tender bidding system has been transformed completely and enabled the procumbent process to connect with the larger network. Electronic Tendering Bidding system has facilitated the whole system online and one of the hassle-free bidding environment between buyer and seller. E-tender is a complex and tedious process and it does not finish over here. Other steps also followed by using online space. After the completion of bidding process and selection of the winning the bid, payment process has taken place. All the payments are done digitally using the internet. This process is highly secure and efficient and effective as well. This process is known as e-tendering invoice system.

Before going to understand e-Tendering Invoice system we need to understand what is e-Invoicing?

e-Invoicing offers the real switch from manual paper to fully digital communication for main business processes in the procurement phase. Using an e-Invoicing system, a supplier can send an electronic invoice and a buyer is able to receive, verify and pay it online. Many electronic Invoicing solutions deal with country-specific legislation, often creating barriers to cross-border trade.

e-Tendering Invoice system is also same as mentioned above or we can say invoicing electronically in e-procurements is known as e-tender invoicing.

What are the benefits of e-Tendering Invoice system in electronic Tendering?

  •  e-Tendering Invoice system simplifies the complex process of the tendering and procurement. All the invoices are handled digitally and paid online.
  • All the process followed is secure and seamless.
  • Reduced expenses, efforts and time of communication between suppliers and buyers
  • Increase efficiency in electronic business processes
  • Stimulation of greater competition between organizations
  • National-wide interoperability between all e-Invoicing solutions

e-Tendering Invoice system and Electronic Tendering Bidding system

In Electronic Tendering Bidding system, in the post-award procurement phase when the tender assigned to contractors an e-invoice generated which is paid to the suppliers. A supplier organization sends an e-invoice to a buyer. The invoice shows the buyer reference element to spot the individual who made the purchase. The digital workflow system informs the buyer that an e-invoice has been received. The system is able to match the digital invoice with the proper order. The buyer checks the invoice and verifies the quality of services and/or quantity of goods. The buyer then approves the invoice and the document is electronically processed for payment.

The Internet has provided us a better-connected world and all the business environments are adopting its capabilities and usability by implementing in their business process so as the procurement systems.

E-Tendering Contract Management system – why businesses need to include

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E-Tendering contract management system is essential parts of supply chain management that provide saving potential. Contract management system works with managers in supplier relationship, goods, and services that have negotiations. With digital Procurement system, one can maintain on identifying routine factors. These performance factors are significant for successful deliverance and organization of the benefits.

Even when someone does conceptual business economics work with acute proficiency, still it is very challenging to doing same work repeatedly. Transformations are necessary for every supply chain manager rather than only improving operations to produce great results while handling constant pressure of maintaining low costs.

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Tender contracts are always and poorly organized in a firm. In a company, there are already some active agreements which if counted then merely said to be hundreds. If we total them all, thousands of contract clauses and terms and conditions for smaller companies. These contract clauses must be monitored before enforcement. E-procurement managers understand that putting logical prices on goods is only a section of strategic sourcing action. The tools in e-tender contract management help companies accomplish the majority out of those contract terms, which purchasers spend their complete effort discussing and negotiating.

What are the Transactional benefits?

Electronic procurement helps the paying procedure of a purchase happen on the internet. Businesses may use web-based transaction tools and e-Tendering Invoice, where goods or services are fundamentally selected from catalogs that are pre-sourced and provided for electronic approval. The system then is linked to an Enterprise resource planning system’s back-end to facilitate entry, e-Tendering Invoice payments, and collect procurement management information.

Easy to access Contract agreements

After the contracts are signed, businesses with contract management tools usually store hard copies in different places. It gets filed by legal departments, stacked by procurement managers, and transported to stockholders. With contract management, companies can organize and store contract records in a centralized and easily accessible repository. One can just click on the mouse to review and download agreements, by guessing where the contract documents are located and giving the business a visibility where contracts are kept at that instant.

Compliance benefits

A major problem lies in agreement and unconventional expenses in any firm. It is not because employees on purpose overspend on a procedure, but because they are not alert. With electronic-procurement, one has a system like catalogs for processing standard orders.

Managing information advantages

Key identifiers may be product codes, cost centers, and so on. The unique identifier codes decrease errors and offer exceptionally detailed daily accessible data. This is needed to make the best use of data for strategic sourcing. Electronic-procurement effectively implemented will provide high-end comprehensive information. It will put off extra expenses on functions like data warehousing or mining.

Smarter spending and more managed database

With contract management system, you have to penetrate and organizing functionalities and can rapidly locate what documents are required. With a contented catalog of the organization’s agreements, the first way to reduce off-contract operating expense can be formulated. It will help contract managers to promptly search all types of agreements being searched. Furthermore, with a prepared database, businesses may be capable of paying out smartly.

Understanding of e-Auction for Beginners

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What is e-Auction?

Electronic auctions are web-based auctions where preferred bidders submit offers digitally against the buyer’s specification. All announcements following and including the request to pre-qualified bidders to propose new costs and/or values must be digital. E-Auction can be used for buying/selling movable and immovable properties.

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What is the difference between in the auction processes, the conventional one and the online auction?

e-Auction offers the same bidding process as done in the offline bidding process. One of the main differences between is, the bidding increased sitting in front of PC. The auction participants are able to check the latest price and able to quote the higher price to be the top bidder.

Post e-auction activities

After the auction closed the winner of the highest bid intimated by the bank and Bidder needs to sign the relevant documents to finish the process and bidder have to contact the bank directly.

Advantages of e-auction –

  • Transparency in process
  • It will be clear to participants why they won/lost the e-Auction.
  •  This process makes participants clear that why they won or lost.
  • Real-time market information is provided to Participants.
  • Faster contract awarding process
  • Better than face-to-face negotiations and time-saving.

Limitations of electronic Auction-

  • There is much possibility of fraud
  • Participation can be Limited
  • There may be some security issues
  • Limited to Auction software
  • Lengthy cycle time
  • Monitoring time
  • Equipment for buyers
  •   Order fulfillment prices

What is the role of Digital Signature certificates in E-auctions?

To make this process secure, DSC or Digital Signature Certificates are used. These certificates are digital equivalent of physical or paper certificates. Examples of physical certificates are passports, drivers’ licenses or membership cards. DSC serves as proof of identity of an entity for a certain reason; for eg. , a driver’s license identifies the person who can legally drive on the road in a particular country. Likewise, a digital certificate (electronic format) can be presented digitally to prove someone’s identity, to access data or services online or to sign certain documents electronically.

Auction is a bit tedious process but due to advancement of the technology it has become efficient, executable, strategic process. E-Auction is one of the convenient forms of the traditional process and can be executed remotely.

E- Tendering Advantage over Conventional one

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The e-tendering framework has turned into a most popular arrangement of tender management under the public procurement space. Digital tendering has helped companies to deal their procurement requirements more effectively and efficiently.

The manual tender system can be long and awkward and is frequently too expensive. Since supplanting traditional tender process with that of electronic medium has turned into the need of the time. With an exceptionally mechanized e-Tendering framework, tender determination, promoting, tender accumulation and additionally the assessment and setting of the agreement can be set at ease.

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What is E- tendering?

A web-based process wherein the total tendering process; from promoting to receiving and submitting tender related data are done on the web. This empowers firms to be more proficient as paper-based exchanges are decreased or eliminated, encouraging for a more fast trade of data.

E-tenders in general population are has seen quick development as of late. E-procurement tasks are regularly some portion of the country’s bigger e-Government endeavors to nationals and organizations in the computerized economy.

Advantages of E-Tendering

  1. Executing an e- tendering framework benefits all levels of an association. E- Tendering process offer improved spend control and visibility and help fund officers coordinate buys with buy requests, receipts, and employment tickets.
  2. Reduced expenses as compared to traditional paper-based response process

Simple to use software interface

Rearranged tender and procurement system for both suppliers and procurement officers.

  1. Round-the-clock simple and quick access to tendering data.

Standard indications of imperative due dates in the tender award process.

Gives more secure access to tender data than conventional printed copy process.

  1. Responses from providers remain secure and privileged until the end date.
  2. All communications can be followed in a clear legitimately binding audit trail

Executing an E- Tendering system benefits all levels of a company. Electronic tendering systems offer enhanced spend perceivability and control and help back and help finance officers match purchases with buy requests, receipts and job tickets.

What are the Instructions to be followed in e-Tendering Contract Management System?

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In e-tendering bidder system, Bidder required to enroll online on particular portal. Then after signing-in on target portal Digital Signature enrollment need to be done with an online token which is known as e-token. This e-token is offered by authorized Certifying Authorities and it must be obtained by them.

This process helps bidder to log into their account by using their used id and password which are provided at the time of Signup.

Digital Signature certification is only mapped to an account and can’t be used by someone else using different account. Only inactivation will work here and mapping will be done only once with the single associated account.

After getting the tender schedules, the Bidder should go through tender carefully after getting the tender schedules. The document must be submitted as per the tender documents to avoid bid to be rejected. Bidders, in e-Tendering Contract Management system are allowed to enter the Name and bid Values only. If there are any clarifications, this may be acquired online through the e-Procurement platform, or through the contact information specified in the tender document.

To proceed, bidder should prepare the bid tender documents to be submitted as specified in the tender list and these are preferred in PDF/XLS/RAR/DWF formats. If there is more than one document, they can be merged together.

The tender documents must be submitted online well in advance before the given time to avoid any setback or trouble during the bid submission procedure.

There is no bound on the extent of the file transferred at the server end. However, the upload is chosen on the Memory accessible at the Client System and in addition the Network bandwidth accessible at the client side at that point of time. In order to cut the document size, bidders are suggested to scan the file in 75-100 DPI so that the clarity is retained and furthermore the size of file also gets decreased. This will facilitate in fast uploading even at very short bandwidth speeds.

It is critical to note that, the bidder needs to tap on the Freeze Bid Button, to guarantee that he/she finishes the Bid Submission Process. Bids which are not frozen are considered as Invalid/ incomplete bids and are not believed for assessment purposes.

The e-tendering bidder system will provide a successful proposal message update after uploading all the tender documents submitted and then a proposal summary will be revealed with the date, time of submission and bid number of the bid with all other applicable details. The records put together by the bidders will be carefully signed utilizing the e-token of the bidder and after that submitted.

After the offer submission, the proposal outline must be printed and kept as an affirmation as a token of the submission of the offer. The offer outline will go about as a proof of proposal submission for a tender floated and will likewise go about as a section indicate in the offer opening event.

What is the process of the Electronic Tendering System registration?

Electronic Tendering System is a method of obtaining the things digitally utilizing World Wide Web and Indent Management and RFX Management is part of the e-procurement. These two words are mentioned here because of their participation in the system. This procedure definitely reduces the span of acquirement process and diminishes the vast majority of the indirect expenditure in the event that you enroll on electronic Tendering. Having entry to the tender data, enable you to buy delicate calendars and submit them on the online platform. Free and fair cooperation is possible with more straightforwardness.

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Proceed to Tenders Page and simply top off the enrollment frame. It will enable your user ID OR client ID on e-Tendering.

Ensuring to enrolling on e-Tendering, you are given username and password which is generally same for all of the websites. You can only login to the site utilizing this data and everyone is aware of this method.

You can access your record from anywhere in the world using provide data. The simple access requirement is a computer, Internet, and knowledge of the internet. Now, everyone has that capability in this digital era.

The password is encoded in Secret words at the database level, only you are aware of those words or characters. Even if the system administrator wants to access then it will be hard to do so because these words are encoded and encrypted. And it will be suggested the time to time to change of password to encourage the security of the record.

Following to enrolment of e-Tendering, you would frequently login into your record account and can find the data in respect to tenders. Similarly, you will get an email notification in regards to the production of the notice.

The document can be downloaded from the electronic tender website page on paying the necessary charges. You can fill the document archives and send online along with the inspected endorsements needed for the tender. Endorsements are a portion of the document reports. When downloading the document data, this information was additionally downloaded.

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With the registration of the e-Tendering, you are provided some amount of online space to upload your documents, information, and endorsements. If any changes are required in your profile, it is easy for anyone to change the information after joining the website. If any certifications are provided then it is easy to utilize them any time depending on your needs.

BG/DD taken for EMD is checked and must be attached to the specialized offered among the entire proposals. The firsts can be given to the organization among the specialized offer opening. Following and presenting your documents, you will get a sales receipt mail giving the position of the proposal.

At the point when your offer is opened, you will get a mail notification revealing the delicate elements, for example, the offer has been opened by this official organization, date and time of opening.

These are the basic steps of the online tendering system. It is very easy to follow and each site has these basic steps to follow. A few things will be different but not the all. There’s nothing much to struggle while registering for the e-tendering.

E-Bidding and e-Tendering: Procurement Made Virtual

New opportunities are now just an alert away with the online shift of the procurement process.

Tendering is an old tradition. It’s part of the procurement process between the seller and buyers. But tendering is a long, lengthy process full of paperwork. It cuts into time and resources of an organization. But the technological revolution and the internet have changed the entire process. Everything from advertising, processing, bidding and then awarding of tender is done online.

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The bottom line is to save time. The faster the advertisement reaches the interested organizations, the faster the processing of applicants and then the e-bidding begins. E-Tendering has made the entire process easier and more transparent. Through the online tender services, the information and alerts for new tenders are mailed to the organization on a day-to-day basis. This database has thousands of tenders at any given moment. The electronic tendering system is an easy adaptation of Globalization because with everything in open forum the connection goes beyond the local business. An organization can bid on a tender overseas as long as they have adequate resources.

With online databases for tenders, it’s easy to surf through the virtual web for new business opportunities. However, the tender alert system provided by the online services has proven to be a boon to the small business or business with threats of take-over and mergers looming over them. The bigger organization leads the race due to their reputation and resources.

Once an organization has filled out the online form, they can easily submit the required documents online too. Any query or request for information by the seller or the bidder can be made through the customer services by the online tender portals. This entire e-tendering process has thus enabled a closer and swift interaction on both sides. Where once the process was full of hurdles and monstrous paperwork, today it just needs a person in front of a computer screen and access to the internet. Before the bidding starts, an e-Contract is signed between the seller and e-Tendering bidder. The bidders are two or more.

E-Tendering bidder system has an online open forum/portal where the entire process is visible to the seller and bidders. As a result, there is a very minimal chance of favoritism. The organizations can keep track of various bids and the place their bid according to the best bid that has been placed at a certain time. Once the bidding closes, the seller ranks them according to some pre-determined criteria and then winning the bid is awarded the tender. The e-receipt is sent to the winning bidder who then pays using various online payment portals that are safe and quick.

Thus, organizations save time and still get a fair access to the best tenders, both public and private. The entire system is being made less complex each day and the time that has been saved on paperwork and waiting periods have only contributed to the overall development of the organization. And if one is counting the pros of the e-tendering transparency and a wider connective to business cannot be overlooked.

In an increasingly virtual world, e-Procurement isn’t just a new way but rapidly becoming the only way!