Negotiated Tendering is a procurement method where the buyer enters into direct negotiations with one or more suppliers to finalize terms and conditions, rather than following a competitive bidding process. This approach is typically used when specific supplier expertise or a complex project requirement necessitates direct discussions to achieve optimal procurement outcomes.
Key Benefits
– Flexibility in negotiations: negotiated Tendering allows direct Dialogue with suppliers, facilitating the refinement of bids to better meet the specific needs and constraints of both parties involved.
– Enhanced relationship building: through negotiated Tendering, the process encourages ongoing communication and collaboration, fostering stronger, more strategic relationships with suppliers which can lead to more favorable terms and long-term partnerships.
– Improved Quality and specifications: the process allows for adjustments in Quality and specifications to better suit Operational requirements without compromising Cost effectiveness, ensuring a higher standard of the procured service or product.
– Cost Reduction opportunities: suppliers often have the opportunity to explain the various costs involved, potentially lowering prices or identifying areas where Savings can be realized without impacting quality.
– tailored Contract outcomes: negotiated Tendering leads to contracts that are better aligned with the buyer’s objectives and constraints, providing more tailored and potentially more beneficial outcomes for both parties involved.
Related Terms
– Flexibility in negotiations: negotiated Tendering allows direct Dialogue with suppliers, facilitating the refinement of bids to better meet the specific needs and constraints of both parties involved.
– Enhanced relationship building: through negotiated Tendering, the process encourages ongoing communication and collaboration, fostering stronger, more strategic relationships with suppliers which can lead to more favorable terms and long-term partnerships.
– Improved Quality and specifications: the process allows for adjustments in Quality and specifications to better suit Operational requirements without compromising Cost effectiveness, ensuring a higher standard of the procured service or product.
– Cost Reduction opportunities: suppliers often have the opportunity to explain the various costs involved, potentially lowering prices or identifying areas where Savings can be realized without impacting quality.
– tailored Contract outcomes: negotiated Tendering leads to contracts that are better aligned with the buyer’s objectives and constraints, providing more tailored and potentially more beneficial outcomes for both parties involved.
References
For further insights into these processes, explore Zycus’ dedicated resources related to Negotiated Tendering:
- UPCOMING WEBINAR – Integrated Source-to-Pay Keeps Benefits Flowing Upstream and Downstream
- Putting the Supplier at the Heart of Procurement
- Top 7 Benefits of Contract Management Software for Enhanced Efficiency and Compliance
- CPONext: Procurement Leaders to Watch Out For (APAC Edition)
- Zycus Strategic Sourcing Compliance Solutions for Procurement
White Papers
Master the UK Procurement Act 2023: Ensure Compliance & Drive Procurement Excellence
Filter by
Consolidated Invoice
A Consolidated Invoice is a single invoice document that aggregates multiple individual transactions or services provided over a certain period,
Compliance Scorecard
A Compliance Scorecard is a structured tool used within procurement processes to evaluate and ensure that all sourcing activities adhere
Contract Addendum
A contract addendum is a formal document that modifies or adds terms to an existing contract without altering its original
Contract Authoring
Contract Authoring refers to the process of creating, drafting, and preparing contracts for agreement and execution. It involves outlining terms,
Contract Review
Contract Review is the structured analysis and evaluation of contract terms to ensure compliance, mitigate risks, and align with organizational
Bid Response
A Bid Response is a formal reply by a supplier or vendor to a Request for Proposal (RFP) issued by
