It focuses greatly on how desperately the companies either government bodies or private players take into consideration to procure goods & services at their place by means of competitive Bids. And it emphasizes the organization when, how, where & which kind of bid to be deployed in the open market to earn huge profit out of it. It glances upon the open & closed bidding & the way player floats tender in the market as per their requirement to be accomplished at their fullest.
2. Competitive Bidding
• Quoting contract price for supplying the
goods or services under specified t&c.
• Govt. & public agencies purchases- Bidding.
• Large co. uses preferred suppliers: Non-
standard material & manufacturing methods.
5. Closed Bidding
• A closed RFP is issued to specific, invited
respondents only. Submissions from other
“ignored”.
• Issued by organizations that already have
considerable knowledge of the good/service
being purchased, and who have identified a
short list of potential suppliers.
6. (Online)Sealed
Bidding:
Only one supplier &
buyer have an access to
the details of the bid.
If Co. wish to Buy
(Accept low price).
If wants to sell (Accept
high price).
7. Open Bidding
• Potential supplier is allowed to view the RFP
documents and submits a response (Bid)
• More common in government environments,
to ensure purchase decisions are unbiased.
• Used when requirement is hard to define/
products of competing suppliers vary
substantially.(“Price may be negotiated”)
8. Open Bidding
• Open Bid reveals Pricing information to
Competition (erodes supplier bargaining)-
Solar, Wind tariffs(Reverse Auction)
• It affects Buyer-Seller relationship as they
focus on transaction-oriented exchanges
(“when used regularly”).
