Why digitalized public procurement is mutually beneficial for the government as well as the vendors?

Collaborations in the business world are more common than you think. Companies interact with each other to supplement their workforces all the time. For instance, a company that manufactures spare parts for automobiles needs the help of a transportation company to reach its customers. Similarly, examples of B2B partnerships are everywhere. However, all of the collaborations vary by multiple factors. To elucidate the point further, let’s ponder upon the concept of public procurement. By using this mechanism, business, as well as government organizations, fulfill the need for external aid by crafting an accessible communication channel with interested vendors or suppliers. The intricacies of this process vary from enterprise to enterprise. However, the default mechanism that governs the deployment of this process is somewhat universal. All entities involved with the tendering process follow a time-tested roadmap. Nowadays, online publishing tenders have also come into effect. This digitalized method of tendering offers many distinct advantages. The biggest one is the cost-benefit linked with making use of online channels. Secondly, the presence of a singular platform that accommodates all the different stages of this process leads to efficient project timelines. Simply put, the elimination of a boatload of paperwork and timely communication between the involved parties facilitates proper scheduling of operations. Within the realm of our discussion, let’s zero down on the good that comes out of online government-issued tenders.

Government-issued tenders bring significant value to vendors. They not only bring capital-heavy revenue-steams but also prove heavily advantageous for the reputation of the companies that win government contracts. Let’s go through the intricacies of how they benefit vendors:-

• Consistent Influx of Revenue:- Government-issued tenders attract so many bids because they come with an assurance of timely payouts. Throughout the contract, vendors don’t need to worry about receiving their hard-earned revenue. Given the stature that government entities hold, and the affluence they come with, tenderers can bank on the compensation they receive after completing projects and use the incoming revenue for growth avenues. For longer contracts, this steady revenue-stream can even help tenderers counteract diminishing returns from other business channels.

• Expansion Avenues:- For starters, winning government-issued contacts is a big deal since they exhibit uncanny levels of competitiveness. Furthermore, the reputation gain that emerges as a by-product of entering into a contract with the government can open many doors for companies. As mentioned above, the steady influx of revenue can also reinforce this. Simply put, by entering into contracts with the government, companies can leverage the resultant reputation and monetary gain to approach expansion avenues.

• Increased Networking Opportunities:-When companies add a government-issued contract to their resume, they open themselves up to several networking opportunities. For starters, an enterprise trusted by the government is generally deemed as inherently trustworthy by the rest of the market as well. Secondly, experience from winning a government-issued contract can also serve company executives in garnering success in other networking avenues. In short, coming out as a victor is a government-conducted procurement process becomes a selling point on your resume.

Moreover the tendering process is also quite beneficial for the government. If we stack up the innate benefits of the procurement process with the additional incentives emerging out of leveraging online tendering opportunities, government enterprises stand a lot to gain. Here’s a list of ways in which online publishing tenders aid government entities:-

• Decrement in Operational Costs:- When government-issued tenders are deployed in traditional ways, the bureaucratic structures of the issuing entities create several obstructions in the workflow. Eventually, this phenomenon leads to unnecessary costs. However, with online procurement models, governments can easily save money on finding suitable vendors or suppliers needed for the completion of public-focused projects. The automation achieved by online procurement mechanisms not only aids governments in saving the taxpayer’s money but also in saving time. This new-age structure also enables vendors to comfortably contest in bidding wars that take place for the acquisition of government-issued tenders. Thus, the online procurement methodology helps the government in attracting competent tenderers. All of these factors collectively result in the reduction of operational costs associated with the process of tendering.

• Reduced Corruption Levels:- In a perfect world, government entities would never be involved in fishy activities that stand against the foundational principles of humanity. However, the one we’ve got is far from perfect, and when they publish tenders govemployees sometimes get involved with corruption. However, the online procurement models significantly increment the transparency levels linked with the whole process thereby attenuating the ill-natured effects of corruption. In other words, online means of public procurement implement the core ideological provisions inherent to the process of tendering. This digitalized way of tendering ensures that governments issue tenders only to those vendors who provide the best value for the taxpayer’s money.

• Economic Growth via upliftment of SMEs:- Given the level of transparency implemented by online procurement models, government-issued tenders tend to be impartial and unprejudiced. Thus, SMEs have as much of a chance of landing a contract as a multinational conglomerate. This level-playing field often ends up with SMEs coming out as victorious tenderers at the end of the procurement process. In other words, government-issued tenders significantly bolster the growth of SMEs and enable such organizations to gain access to the above-mentioned benefits of partnering with the government. At the end of the day, the economy ends up being boosted.

In a nutshell, when they publish tenders gov entities aren’t the only benefiting party. All parties involved with online procurement end up gaining value from the process. This mutually-beneficial nature of these constructs will pave the way for significant developments in the future. Developing countries can heavily merit from an increase in the number of digitalized government-issued contracts. At the end of the day, a speedier, as well as efficient use of the taxpayer’s money, is what helps nations develop.