It destroys any possibility of a good relationship between customer and supplier. The losses would be one of those unknowable figures".Ĭompetitive tendering involves a purchasing organization advertising business and requesting tenders to supply that business. In some countries the tendering process is called "bidding". Open competitive tendering is where the invitation to tender is publicly available for all interested suppliers to respond.Ĭompetitive tendering can be broken into two main types:ġ. This method is most commonly used in government organizations.Ģ. Closed competitive tendering is where the invitation to tender is issued to a predetermined, or restricted number of suppliers.
In some countries the use of competitive tendering is mandatory for government agencies.
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