What is the difference between tender and procurement?

Tender and procurement will be the words you must have heard frequently in your lifestyle. If you are associated with the business, you must know about these words as you find with these almost everyday. Whether you go for private tenders or government tenders in India, the process of applying and granting them is very much similar in all the states with just a few differences. Tenders are bid and alloted to millions of folks in India and worldwide much like the simple internet and technology, it is becoming very simple to bid for tenders. If somebody is not abreast with the technology, they are able to still file tenders manually in government and private offices. If you are interested in  Isgd tender Kerala and need any further guidance then visit us.

There isn't much difference between tenders and Procurements with regards to definition and we'll be discussing the differences in easier language in order that even if you are a person who is new available of bidding tenders, you can understand the terminologies properly and focus on it.

Tender

Tender in simpler conditions is a process in which a government or an exclusive entity invites another organisation, company or entity to work for them. The entity will post the task related information on their website and persons or organisation interested to work for them will bid on the task with their quotes. Whichever organisation is found suitable for the work predicated on the bidding price, days of completion and quality will be alloted the tender. Organisations or people who take regular tenders are more enthusiastic about bidding for government tenders in India as the safety of payment is always a major factor which isn't a problem in terms of government entities.

Types of Tenders

Tender is merely a word or an easy process for many persons who are either ignorant of it or new in the business but it has a lengthy and detailed process. Tenders are mainly classified into three categories which are discussed in short for you to understand

Open Tenders

Open tenders will be the tenders which are available to bidding for everyone. An entity advertises the proposed project and whoever feels can apply for that project sharing their quotations and bids. The bottom line is, an open tender is open for all.

Selective Tenders           

Selective tenders are not open to every person but as the name suggests is open only for selective people. An entity before or after advertising the project wants persons to talk about certain specific information with them and bidders are selected and rejected predicated on the information they share.

Negotiated Tenders  

When the organisation allots the task to the contractor of its choice, it really is called a negotiated tender. There are various reasons for allocating work to a particular contractor like on-time completion of work previously or the grade of work done before. The contractor builds a reputation of himself which is the reason why he gets work continually from the organisation

Procurement

Procurement is not simply a word but is a complete process which involves many steps and intricacies. From buying goods and services to acquire receipts and processing the payments, procurement involves everything. In addition, the procurement process also involves the processing and preparation of demands. Procurement involves supplier research and selection, specifications developments, purchase planning, negotiations in cost, making the purchase, inventory control and more things.

As compared to tenders, Procurement is a huge process and involves lots of things and is often part of strategy of a company because for a company to decide whether its functions will continue or not, its ability of buying certain materials is analysed. It becomes almost impossible for a business to survive, if the price tag on the procurement is a lot more than what it makes as a profit. Profit here means the total amount a business gets from selling you see, the product.

Visit us for details !