Benefits of Bidding
Bidding refers to the procurement technique where bids from vendors, suppliers or contractors are invited through openly marketing the specifications and scope of a proposed contract. There are several kinds of bidding such as E-bidding, competitive bidding and many others. However, these different kinds of bidding have similar benefits and some of these advantages are listed below.
1. Large databases
The internet boasts of a large database of service providers and buyers. Online bidding therefore broadens and enhances the consumer reach of a certain company. In fact, people and companies that register on bidding websites open themselves to a huge pool of audiences. The buyers can easily browse through the huge database to locate appropriate service providers and the service providers can apply for the posted projects, acquiring new clients for their companies.
2. Enables comparison
The bidding process enables buyers to compare and monitor the various submitted bids. Once they have thoroughly reviewed all the sent bids, they are then able to select the most fitting service provider.
3. Saves time
Bidding removes the requirement of extensive negotiations between buyers and sellers. Different from tender system, you do not have to sort the applications individually to select the correct service provider. Through using online bidding, it is much simpler to submit as well as review applications.
4. Standardized process
Bidding allows buyers to stipulate the desired credentials of service providers and vendors that they want to use. Buyers can therefore establish several parameters like experience level, ISO certifications and kind of expertise among others. This means that vendors that meet these stipulated conditions can bid or apply for the project. The highly standardized procurement process helps to deliver the most relevant bids to the buyer.
Since bidding does not offer buyers the choice of evaluating and viewing the items personally before buying, chances of fraud are high.