Published : 7/01/2020
The difference between Procurement, Purchasing, Tendering and Sourcing
Tender and procurement are the words you must have heard frequently in your daily life. If you are associated with the business,
you must be familiar with these words as you come across 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 only a
few differences. Tenders are bid and alloted to millions of people in India and worldwide as with the ease of internet and
technology, it has become very easy to bid for tenders. If somebody is not abreast with the technology, they can still
file tenders manually in government and private offices.
There is not much difference between tenders and Procurements when it comes to definition and we will be discussing the differences in easier language so that even if you are somebody who is new in the business of bidding tenders, you can understand the terminologies properly and work on it.
Tender
Tender in simpler terms is a process where a government or a private entity invites another organisation, company or entity to work for them. The entity will post the work related details on their website and people or organisation interested to work for them will bid on the work with their quotes. Whichever organisation is found suitable for the work based on the bidding price, days of completion and quality will be alloted the tender. Organisations or people who take regular tenders are more interested in bidding for government tenders in India as the safety of payment is always a big factor which is not a problem when it comes to government entities.
Types of Tenders
Tender is just a word or a simple process for many people who are either ignorant of it or new in the business but it has a very long and detailed process. Tenders are mainly classified into three categories which are discussed in short for you to understand