Tenders and Tendering Foundational Learning
Tenders and Tendering Foundational Learning
Country and Global organizations with public oversight publish a tender, also known as a request for proposal or bid request or request for information.
Tenders are published by the country or global organization and businesses respond.
Businesses with a global footprint primarily win. These businesses forecast and bid using tenders as a way of working.
Trade finance bank systems are required by FFIEC BSA/AML OFAC (office of foreign assets control), FinCen to implement effective due diligence, monitoring and reporting to address trade based money laundering (TBML) in addition to filing a suspicious activity report (SAR). This accomplishes:
- determine items shipped are consistent with the nature of the customer's business (i.e. steel company in steel business, etc.),
- perform greater due diligence for customers involved in higher-risk activities, including activities that may be subject to export/import restrictions (i.e. defense, military, police, weapons, ammunition, chemical mixtures, classified defense articles, sensitive technical data, nuclear, solar, gems, certain natural resources such as metals, gasoline, oil and gas).
- validate goods and services are of fair market value per CPV unit including benchmarked by the controls for above / below value, quantity and degree / quantity shipped
Business of Tenders and Tendering
Businesses seeking contracts with Government and NGOs need to be aware of a tender in a sector the business focuses. In addition to when the tender is published, it is important to understand by which country and the specifications required to participate may or may not permit a proposal from an international company.
As important for the business to understand is when the anticipated tender could be published, when to respond and the estimated size of volume and value. Companies reacting or planning based on annual or semi-annual contracts with continued growth may be satisfactory.
Exploring growth across divisions to other countries is even more challenging with no historical oversight or awareness of tenders.
Companies desiring to explore would require future insights based on historical predictive demand globally and within the country and commodity of interest.
Insight from a trusted party, or syndicated report, which predicts global demand using machine learning could have tremendous benefits to search for tenders.
Employing machine learning of historical tenders globally and by commodity is a robust method to predict future demand and enable an understanding of when, where, what volume and value needed; companies can benefit from such insight to integrate the information into their way of working.
Both the financial services industry and industry would have a requirement and benefit to determine goods and services are of fair market value.
The banking Trade Finance divisions have a requirement to implement due diligence, monitoring and reporting. Employed machine learning of tenders can help banks with this requirement by providing, at the most simplistic level, the average value of the commodity to utilize as a benchmark to meet the requirement to validate that goods and services are fair market value.
Banks can also benefit from Tender Demand Management planning to categorize goods and services by creating a commodity category to identify customers involved in higher-risk activities and to determine if items are consistent with the customers' business.
An additional benefit for banks from Tender demand forecast is to provide greater understanding if the goods and services volumes are consistent with the actual market demand, need and volume.
Similarly, government agencies can utilize tender demand analytics to similarly set guidance, governance, validation, and oversight of banks, corporations and NGOs.
Compliance organizations at Corporations, Government and NGOs, as well as government oversight agencies, can benefit from demand analytics to assure that contracts around the world are consistent and of fair market value.
Questions from doing Business with Tenders and Tendering
Innovative approaches are required to employ advanced technology to capture published tenders, combine the business' tenders and provide an accurate estimate of the tender need, country, industry, size, and estimated price. Additionally, they can provide an estimated price range to win and compare against competitive companies.
Applying advanced analytics to Business with Tenders and Tendering
The application of these analytics are applied to any industry including healthcare, logistics, products, services, and defense.
The syndicated output is a standard need however many prefer visualization tools requiring custom set-up servicing to incorporate clients tenders, tender wins and tender losses.
Analytics for Living provides Tenders and Tendering tool, called TenderCast, to better predict demand and win award rate.