What Is the eTendering Process?
The eTendering process may sound like something complicated, but at its root, it refers to the process of managing tenders digitally. Before the internet, all procurement processes were done with hard copies, which obviously could delay production.
However, moving to digital formats such as procurement software solutions, eTendering, and other types of procurement management tools can improve your entire procurement process. Read on to learn more about how to do eTendering and more about the advantages of eSourcing altogether.
What is eTendering and Its Process?
The eTendering process does have several steps. As you are the buyer, you will want a specific good (or service) from a supplier or vendor. Just as when you were tendering with hard copies, first you will:
- Prepare a detailed outline of what exactly you are looking for
After you are sure of what you want, you will want to connect with a pool of suppliers. When it comes to the eTendering process, this is done through an online portal. Many online portals offer a place where buyers and suppliers can connect on the internet; some are better than others, and you may want to research which ones have better reviews before you register an account.
However, in general terms, the next step of the eTendering process is:
- The buyer and suppliers can make a connection on the same portal
In essence, eTendering is a simple contract management tool because that’s what the next steps involve. The third step is:
- The supplier will respond to an e-RFX that the buyer has posted and will submit a bid if they think they can meet the contractual guidelines
If an agreement is reached, then a contract is made from this point on.
What Are the Advantages and Disadvantages of eTendering?
There are quite a few benefits of eTendering. Cost savings is the most apparent advantage because of the amount of time saved during the entire process. With so much manual overhead time saved, the savings across the board is the number one benefit. Also, spend visibility, and a transparent process across the board is a significant benefit.
Every point of the eTendering process is transparent, structured, and visible. The procurement team typically benefits when using eTendering, given that sourcing events are so much easier once structured and digitized.
Also, the eTendering process allows you to evaluate bids more productively than in the past. Suppliers can be managed and assessed through your chosen portal rather than in email or in individual documents or spreadsheets, which are laborious and time-consuming. Getting involved in eTendering is often the first step for a business to make a complete digital transformation. From here, you can begin to build supplier databases and use even more procurement software solutions.
However, there are some disadvantages of eTendering. As mentioned, not all portals are created equally, so the first one you try may not be the best. Also, the digital world doesn’t always transfer perfectly into the real world. Sometimes eTenders can be poorly worded, and they can be confusing. This can result in a loss of time and back-and-forth time between buyer and supplier.
Depending on the type of portal, there are also different types of eTendering, and they can be broken down into industry, country, and other types. This can be confusing for the person just going through the eTendering process for the first time.
If you’d like to improve upon your procurement or eTendering process and would like an eTendering demo, contact today at EC Sourcing Group at 973-936-9672 for more information about any of our innovations.