Advancement in the internet has thrown the entire process of business to business procurement into a digital overhaul. The automated electronic system has helped bridge the gaps between buyers and suppliers to conduct business in real time.
Whether small or large, the need for tenders is always present in organizations. The tendering process involves collecting and verifying important information before it is accessed and transferred between the buyers and suppliers. The entire system is so complex that the conventional procedures of bidding to evaluation is time-consuming and leave room for mistakes at each step. Thus, the entire process from advertising, receiving and submitting tender related information is done through electronic tendering systems.
E-tendering system replaces all the cumbersome paperwork with electronic alternatives to save time and money. With all the details and documents in an accessible virtual space, the buyers are able to easily store and easily compare all their data on spreadsheets. Now, the whole process of tendering from comparison to evaluation has been automated. The saved time has great returns to the organizations on both sides. E-procurement has resulted in better customer services for the buyers and bidders. Due to this effective structure, the responses to inquiries and clarifications are easily and quickly made within the tender period. It has also improved audit trail, for better integrity of the tendering process.
Various Tender Management Tools are used in the system for faster navigation through one section of the database to another. These tools have also been proven effective in improving the communication between the different members of the team (i.e. service providers and product vendors). Many sophisticated e-tendering systems try to include complex collaboration functionality using such management tools with the understanding the same tendering documents have to be accessed at various levels and by different people. The entire process of tendering of goods and services has been streamlined so that the responses from buyers and vendors are in a particular format. Tools are used to easily evaluate these formatted data.
E-bidding is another stage of E-procurement done entirely online between the buyer and bidder. It is more efficient than traditional methods, promotes competition and provides an electronic record. It helps make the entire process more transparent by keeping a check on unwanted pressure from third parties and for creating long-term archives of the bids/tenders. The cycle time of the entire process is cut down largely. After all the details about the product and cost are specified online, an E-agreement is signed before the E-bidding starts.
A large number of large and small scale companies have international interests. With E-bidding occurring completely online, it offers more options for international business deals when compared to the traditional bidding process. Payments procedures are easy and quick after the bidding is finished.
Implementing an E-procurement process for tendering and bidding is beneficial at all levels of organizations and has been recognized as such by both the public and the private sector. Thus, even the most mundane tasks have been turned into highly time and cost saving with exciting benefits for the organization.