Individual Assignment

Individual Assignment Q: Explain why companies persona competitive bid and explain the advantages of using it? A: 1. Introduction What is tender? Identifying voltage suppliers is different from reaching a contract or system with suppliers. Competitive bidding and negotiation are two methods ordinarily used when selecting a supplier. Competitive bidding in mystic industry involves a request for bids from suppliers with whom the buyer is willing to do business. This process is typically initiated when the purchasing manager drives request for quotation(RFQ) change to the supplier. [1] An example show that simple bidding process amongst buyer and supplier: lets assume Buyer A has a new project coming up and that project is overtaking to require him to purchase 500 deplumates of telegraph. He may already vex a supplier he uses for the purchase of wire but perhaps that supplier charges $200 a roll and he wants to see if he can get a better deal with another supplier. Buyer A find outs to use bidding . The first step in the competitive bidding process is for Buyer A to explain in compose his particular project needs. His needs must be clear, of course, so that potential suppliers will understand his requirements and will be open to bid accurately.

Buyer A can consequently send this description, along with an invitation to bid, to as many possible suppliers as he would like. He can also include his current suppliers as salubrious. Once suppliers receive the culture that can then decide how much to charge Buyer A for the 500 rolls of wire. They then place a bid that includes that amount as well as some details about other service they may add or other useful information that the buyer may need to make a final decision. The suppliers are able to see and compare the other bids available, although they ordinarily are not able to see the names of the companies, which have placed them. Because they can see the competing bids, suppliers realize that to be in the running for the... If you want to get a full essay, battle array it on our website: Orderessay

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