Tender

Category: Procurement

Definition (plain English)

A formal competitive buying process where suppliers submit bids under stated rules, deadlines, specifications, and evaluation criteria.

Why it matters commercially

Tender discipline matters when award value, compliance, service risk, or fairness requirements make informal quote comparison too weak.

Example

A distributor tendered annual freight lanes with fixed surcharge rules, free-time assumptions, temperature requirements, and claims handling terms.

Common mistake

Launching a tender with vague scope or changing rules mid-process, which makes bids non-comparable and exposes the buyer to challenge.

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