What is e-Tendering: Definition, Benefits & software

2024-07-22

What is e-Tendering?

e-Tendering can help companies efficiently find the best suppliers for their procurement needs at the right price. Multiple suppliers respond electronically to procurement opportunities, competing to win sales or provide business services. An e-tendering system, based on internet technology, digitizes and integrates the entire tendering process, including bidding, evaluating, and contracting. It primarily consists of a network security system and an online business system. The system allows for the execution of online tendering, bidding, opening bids, evaluating bids, and monitoring activities, ultimately achieving efficient, professional, standardized, secure, and low-cost tender management.

e-Tendering (eTendering) involves using an online procurement (eProcurement) platform to automatically solicit bids and evaluate suppliers. It is a crucial part of the procurement process, aiding in the simplification of supply chain to procurement (S2P) operations and providing greater insights. Paperless e-tendering includes soliciting bids, submitting proposals based on formal procurement requirements, exchanging documents, and evaluating shortlisted potential suppliers and their bids. In the digital e-procurement process, the e-tendering stage occurs after the buyers requirement documents are prepared and approved, and some suppliers are pre-qualified or shortlisted.


How Does e-Tendering Work?

When a buyer issues an Invitation to Tender (ITT) or Notice Inviting Tender (NIT) to potential suppliers responding to a procurement request, e-tendering operates through an internet-based online or mobile software platform, which may include a portal. E-tendering allows bidders to submit the required information by the deadline in response to a formal Request for Proposal (RFP), generate and exchange documents with electronic signatures and messaging, and evaluate procurement opportunities from bidding suppliers. Once a supplier is selected, the electronic bid becomes legally binding. Authorized employees can view relevant documents, but company policies should prohibit disclosing information before the contract is awarded. Companies can establish policies requiring e-tendering for procurements exceeding specific monetary thresholds or from particular sources.

Advantages of e-Tendering

The benefits of e-tendering include:
- Providing an efficient and secure environment through online e-procurement systems.
- Facilitating communication and interaction with built-in status updates and messaging functions.
- Saving costs through more competitive bidding and tendering processes.
- Improving quality through better supplier evaluation and selection.
- Saving time with paperless e-tendering.
- Reducing errors and post-contract disputes with a complete process.

Additionally, the paperless nature of e-tendering eliminates the costs associated with printing and distributing requests for proposals and contracts, further saving funds. It also avoids the need to send corrigenda for errors, as all corrections can be made online and communicated electronically. Lastly, companies can access digital data through e-procurement, AP automation, and ERP system integration, and make global bulk payments electronically.


Professional e-Tendering software: 8Manage e-Tendering System

The 8Manage e-tendering system provides efficient, fair, and comprehensive monitoring for corporate bidding and tendering. Companies can pre-set tendering rules as needed, and the system strictly adheres to these rules throughout the process. Additionally, 8Manage offers robust security mechanisms to ensure the safety of all tendering processes and information. The system achieves security through mechanisms like security codes, one-time passwords, two-way communication encryption, role-based access control, and audit trails.

- User-customizable tender templates.
- Tender expert management and tender approval management.
- Supplier pre-selection, invitation, and participation management.
- Tender document preparation and release management, tender consultation, bid opening, evaluation, negotiation, and award management.
- Supplier announcements and electronic contract generation.
- Comprehensive audit trails and tender analysis.

8Manage features transparent procurement, early warning supervision, traceable information, visualized data, and multi-party business collaboration. From tendering and bid evaluation to award management and supplier performance and contract completion, the system guides users through the entire tendering process. It helps companies improve tendering efficiency and prevent corruption. Throughout the corporate tendering process, information sharing among relevant departments is achieved, responsibilities are clearly defined, and procurement costs and transaction fees are effectively reduced, achieving the goal of cost reduction and efficiency improvement.