Post Tender Negotiation (PTN)
Post tender, also known as a Request for Quotation, is a period during which a potential buyer makes a procurement request in relation to a potential product or service that is being offered. This request is made as a means of soliciting bids from various vendors and/or suppliers of the product or service being offered. A post tender can occur in many different ways and this article describes the most common types of post tender requests that may be made during the course of any normal business process. When a procurement request is made during the course of any normal business process, the supply chain management team will first solicit bids from all vendors and suppliers that are being considered. This occurs both before and after any pre-tender work activities such as an estimate or bid release.
The second type of request that can take place during any normal business process is that of an Invitation for Quotation. An invitation for quotation is simply a request made by an initiating buyer during the course of any normal sales or business process. Invitations for quotations are typically made as a means of alerting the supply chain to a particular offer that is being made. This is done as a means of providing the organisations involved with the opportunity to decide if they wish to engage with the offer that has been made.
The third type of Post Tender Negotiation is that of a Request For Proposal. This is a relatively simple process. A Request For Proposal (FRP) is a document that is submitted during the production phase of any normal production process. Any standard definition of a FRP is that it is a document that seeks to define the scope of a proposed sale or purchase of one particular product from another company. Once the scope of the Request For Proposal has been established, the supply chain company will make a counter offer based upon the contents of the Request For Proposal. The process for requesting a quotation and for making an counter offer is also the same as that which is used for requesting an Invitation For Quote.
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