If we go by the definition of tender, then it is conceived as a well documented invitation to vendors and contractors for availing the supply of goods and services. Release of tenders is an important procedure towards the over all growth of business process. An organization can’t handle all the responsibilities of progressive supply of goods and service. More than anything else, it would need to recruit additional human resource to arrange the growing supply, which would certainly call for monetary investment for production on urgent basis.
For instance, when an organization needs 1000 PCs for its official operation, it wouldn’t go for the installation of a production unit, rather it would advertise a tendernews about the requirement of products in newspapers and online sites. When it gets the right vendor that could fulfill the requirement, it actually saves a lots of time, effort and money.
Another important feature of tender as a tool of business development is that it allows an organization, be it a macro, a medium or a small enterprise, to capitalize on the services and products it offer. If a BPO gives its time to computer components manufacturing, then how it would serve its customers who look up to it for support and assistance on 24×7 basis ?. A tender on the supply of components could easily solve that problem, providing the BPO full leverage over its service offerings.
These days tenders are not just restricted to newspapers, but a host of online service providers on the same line made the process more viable and convenient. Special online portal works like a common platform for vendors and buyers. Apart from allowing companies to place tenders online, these portals serve as fodder ground for vendors. Interested sellers get large scale orders just by browsing through the internet, while companies get a slew of options to choose from to get the work done.
Of course, a company has to formulize its own growth strategy to stay ahead in the market. But, it is has become mandatory both for public and private sector organization to place tenders. More than anything, tender from public sector enterprise gives an equal chance to all the vendors and contractors to bid for allotment.
In this fast-moving commercial process, it is difficult to maintain the profitability of your organization all alone, and that is the reason why tender placement plays an important role for proper growth. Tender placement is like advertising the needs of a company for smooth functioning of the operations. The rise of Small and Medium Enterprises (SMEs) has also triggered the prospect of tender evolution, and it has a long way to traverse even after becoming an indispensable part of business growth.
Tender request for contracts also generates indirect employment. Millions of wage earners all over world work, either full or part time, to accomplish several contractual projects, and in return they enjoy a living out of it. So, it won’t be wrong to put tender placement as one of the indirect means of economic development, besides being a tool of business development.