WHAT IS TENDER?
In this system the entity invites suppliers to give their
quotations.
The supplier with the lowest quotation wins the contract.
It is a kind of contract mostly followed by large organisations
and governments when purchases are of large value.

Open Tender
This is where an opportunity (including all tender documents) is
advertised inviting providers to bid directly for a contract.
All interest parties then submit a tender.
Scoring takes place and the successful organisation is
awarded the contract.
Sometimes there is a selection stage first, which is then
followed by the award stage.

Restricted Tender
This involves the opportunity being advertised in the relevant
places and media.
Organisations will then submit an expression of interest and fill
in a pre qualification questionnaire.
Successful organisations will go onto select list and be given
an invitation to tender with the tender documents.
Tender documents are completed and submitted.
From the submitted tender documents scoring takes place and
the successful organisation is awarded the contract.

Advantages:
Competitive
Lower Cost
Transparent Process
Disadvantages:
Low Price usually Detriment of Quality
Time consuming

PROCESS

Invitation
Pre/Post
Qualification
Questionnaire
Bid Bond
Site Visit Tender Box
Receipt of Tenders
Withdrawal of Offer
Tender Offerings Evaluation
Recommendations
Letter of Award
Conditions of Award

BLANKET ORDER

Company purchase many small items on day to day basis. It
becomes difficult to have inventory for all.
It is most popular method for purchasing items which are used
regularly.
There are two methods:
Agreement is made to supply a Fixed Quantity of the product at
a Fixed Price for a Specific Period.
Agreement is made to supply for a Specific Period but the
Quantity is unknown.