August 21, 2019 | 3 min read
Electronic- or e-Tenders bring in more competition than paper RFx.
If you want to understand how e-Tenders work, our Beginners Guide to e-Tendering is a great place to start. e-Tenders, also known as RFP-RFQ-RFI software or simply RFx solutions, are all about handling the proposal and bid process through electronic connections. Why would you want to switch from the manual bidding process to an electronic format? Here are the top 5 benefits of running e-Tenders as a buyer.
An e-Tender is accessible to any organization around the world that has an online connection. It makes RFx documents easy to send, share, and pass around within your industry. By going online with bid management, buyers can negate traditional geographical and communication barriers. Built-in communication channels allow buyers and suppliers to contact each other, exchange data, and even announce winning bids despite in some cases, being halfway around the world.
E-Tender software does an amazing job of bringing the right stakeholders to the table in the initial stages of the bid management process. Instead of sending out disparate RFx statements via email, LinkedIn, and even old-fashioned paper mailing lists of partner agencies, e-Tender simplifies the whole process. Though you may invite participants through social media and other avenues, a web-based e-Tender solution provides a centralized portal for responses. Your organization receives all the responses to a single location, eliminating the gathering and standardization of formatting steps that were annoying but necessary in the past.
Centralization eliminates information asymmetry about your bid management process. Respondents are clear about what you want as a buyer. Once all RFx responses come in through a single portal, you have better control over the formatting. You can ensure that every piece of information you need is provided. You can compare supplier quotes easily. Decision-making becomes so much faster when you collect all the responses and can review them quickly.
There is also a clear business case for investing in an e-Tendering solution. Respondents appreciate when you run RFX electronically for a few reasons. First, smaller suppliers are especially encouraged to respond. Potential suppliers don’t need to hunt down additional information, they know the process is egalitarian, and they have all their information upfront through the online format. Second, it allows emerging businesses a level playing field and a fighting chance at catching your eye. Finally, when the stage is set for new partnerships to grow, buyers see a huge benefit in competition when it comes to pricing and contract terms in this environment. Better competition with more competitors will bring about more favorable scenarios for the buyer.
Tender software is not a standalone solution. The great thing about cloud-hosted e-Procurement platforms is that they are easily integrated with various solutions that facilitate a smooth, online e-Tender process. Contract management tools, for example, are a typical compliment. Using both tools together, your organization can go beyond the invitation to tender and continue into managing your supplier performance. After business relationships change, this combination can work to facilitate an easy contract completion and exit complete with regulation compliance and data security for all partners. When packaged together with other e-Procurement software, e-Tender solutions become even more dynamic as efficiency tools for your organization.
The ProcurePort e-Tendering solution provides all of the benefits mentioned above: mobility for global reach, a centralized repository for documents and correspondence, cloud-based comparison tools, a robust marketplace, and integration-friendly tools that compliment the process well. Not only do these benefits increase your efficiency, but they are designed to curb the risk involved with manual management of sensitive data throughout a typical bidding process.
To create, manage, distribute, and evaluate tenders with an easy-to-use solution by ProcurePort, request a demo of our software today.