So what is tender management? In today’s competitive business world, many potential projects and services are put out to tender. That is numerous potential companies are provided with the opportunity to bid for the work.
In their bids, they will describe how their company will solve a business problem, provide the service required or supply the goods requested. They will also need to provide a competitive price for this work.
The process of designing and writing these proposals or tenders, complete with the competitive pricing, is called tender management, proposal management or bid management.
When does Tender Management Start?
The tender starts when an appropriate Invitation to Tender (ITT) has been identified. The ITT is a formal document that is published by a purchasing company in order to notify other companies that bids for a piece of work, project or service is required. Continue reading
This is usually a focussed, facilitated discussion and analysis about whether a potential client fits with your strategy, direction and current capability.
- evaluating yourself (using metrics) against your competitors to ensure your considerable time and effort is not wasted
- being realistic and ensuring you have the capability to meet the contract requirements should you be successful astute purchasers are seeking guarantees of performance which may need to be supported by insurance or bank guarantees, and
- being honest with yourself and safeguarding your integrity; not just participating because you perceive there’s a market expectation that you should be in the race.
Undertaking a Bid, No-Bid Analysis might mean you decide not to participate in certain RFT opportunities after you’ve made your assessment. However, I believe, far from being perceived as a lack of capability or willingness this can create a sense strength and recognition of your commitment and loyalty to current customers.
If the commercial sector is about financial return to its shareholders then the public sector is about demonstrating value for money in the use of the taxpayers’ monies. This demands transparency and accountability with public scrutiny.
However, don’t be mistaken it doesn’t mean the cheapest. It means assessing and purchasing the optimum quality at the lowest price.
In other words, the ‘value for money 3Es’:
- Economy – means buying at the right price and right quality
- Efficiency – means getting the most out of your goods and services on the job
- Effectiveness – means ensuring your goods and services contribute to achieving government policy and program results?