Tendering and Supplier Selection

Abstract

This chapter introduces the topics tendering and supplier selection in more detail. It explains that in a procurement context, a tender procedure initiates a process in which decision-makers start to make sense of the potential match between supply and demand. A specific difficulty for supplier selection in public tenders is that the supplier selection model needs to be published before the bids are received and insights developed after reading the bids cannot be used to change the supplier selection model. This chapter explains that to prevent unexpected insights after the tender closes, a buyer should explore and consult the market before the tender starts and listen carefully to suppliers. It also presents a ninestep supplier selection model that public buyers can use to indicate their preferences, since can have a positive influence on the quantity and quality of bids as it can explain suppliers what is needed and important. The chapter concludes by explaining that only by translating the ambitions and views of the buyer in the organizational design of the tender as transparent as possible, the best possible bids will be received.