Want to know the difference between tender and procurement?

The difference between Procurement, Purchasing, Tendering and Sourcing

Tender and purchase are words you will often hear in your daily life. If you are involved in business, you should be familiar with these terms because you come across these almost everyday. Whether you go for private tenders or government tenders in India, the process of implementing and awarding them is very similar in all the states with only a few differences. Tenders are bid and allotted to millions of people in India and around the world because with the ease of internet and technology, bidding for tenders has become much easier. If one is not averse to technology, they can still file tenders manually in government and private offices.

When it comes to definitions, there is not much difference between tenders and procurement and we will discuss the differences in simple language so that if you are a person who is new in the business of bidding tenders, you will know the terminology. And here it will provide Tender bidding support so you  Can understand and work properly.

Tender

In simple terms, tender is a process where a government or private entity invites another organization, company or institution to work for them. The entity will bid on the work on its website with job related details and quotes from people or organizations willing to work for them. Find below the tender information services with its type.

Types of Tenders

 #1 Open Tenders

Open tenders are tenders that are open to all to bid. An entity advertises a proposed project and anyone feels that an application can be made to share their quotes and bids for that project. In short, there is an open tender for all.

#2 Selective Tenders

Selective tenders are not open to everyone, but as the name suggests it is only open to selective people. An entity wants people to share some specific information with them before or after the project and bidders are selected and rejected based on the information they share.

#3 Negotiated Tenders

When the organization assigns work to the contractor of its choice, it is called negotiation tender. There are various reasons for allocating work to a particular contractor such as timely completion of work or quality of work done in the past. The contractor builds his own reputation, which is why he gets constant work from the organization.