Selection of Source (Supplier) Open Tender .....Purchase procedure (contd..)

Open / Global Tender process :


This mode of tendering presumes that for fulfilling the firm's requirement of materials /


services there could be competent suppliers who are not known to the buyer The circumstances could be any of the following :

  • When reliable sources or suppliers ( manufacturers / suppliers / traders / contractors etc ) are not clearly known

  • When the procurement involves latest but largely unknown technology

  • When it is felt that advertising may elicit still better response

  • When such commercial considerations as policy , estimated cost of purchase/ job contract are involved

  • When there is an information / anticipation about a possible formation of cartel / ring by suppliers


In the pre-Internet days when reaching out to prospective bidders was done through mailing of papers (Tender documents)  ,a distinction was made between Open and Global tenderings.

Open tenders were those which were limited within a country whereas the Global tenderings were open to the entire world. Usually , but not limited to, Open tendering was often done through advertisement of calling tenders in popular and widely circulated dailies within the country and the Global tendering was done ,besides the national dailies ,inserting advertisement in Global trade journals or even in the leading news papers of some foreign countries.

In the era of communication revolution, the NITs  are displayed on a company's website or on some other websites meant to display only NITs. Obviously , unless otherwise restricted, since the internet is well within the reach from any corner of the world , NITs displayed on a website are global, today. 

How it is done ?

The complete tender document , containing the detailed materials


description, requirement period, place, purpose , other additional information, terms and conditions of purchasing etc are displayed on a website (usually the firm's website / professional sites of tendering) or advertised in news papers , Trade journals which can be downloaded / purchased by the interested bidders. For the tenders displayed on the websites the bidders are allowed to either download it from the website or collect the complete document in hard copy from buyer's notified locations , may be by payment of a nominal amount.


Different modes of Tendering :




Purchase Procedure (Steps)

Purchase Flow Chart
Recognition and description of need
Transmission of need (Indenting)
Selection of Source to satisfy the need
Contracting with the accepted source
Following up with the source / supplier
Receiving and inspecting material
Payment and closure of the case


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