What is a Tender Management System (TMS)? It seems like a simple question! We know this is a more complex question based on Google search results, and from our own inquiries.
In this article we will discuss how it is used by different people in the procurement and supply industries. This is why there’s confusion!
Let’s dive into the topic and examine the definitions, purposes and functions of a “Tender Management System“. We will also clarify where our Virtuoso Software fits within the market.
Tender Management Software Evolution
Software has changed dramatically over the past few years, as new technologies have emerged at an alarming rate. Software solutions that can manage all aspects of a business have become increasingly important as businesses grow more complex and global.
The tendering process is an ancient practice that is still evolving.
Both procuring agencies as well as suppliers have relied for many years on basic generic software and manual activities to manage the process. The tendering process has become increasingly complex as a result of increased formalisation and regulation.
The industry has undergone a revolution in recent years due to the widespread use of digital communication and internet tools. electronic purchasing, or eProcurement was introduced in the early 2000s by governments.
Suppliers have been slower to adopt more sophisticated and holistic tools for managing their internal tender activities. For compiling tenders, many businesses still use generic business tools like email, spreadsheets, and word processing. This is rapidly changing as businesses strive to improve their bid-management practices.
Tender Management Terminology Confusion
In the 1960s and 1970s, many business concepts were developed. These included software such as ERP (Enterprise Resource Management), CRM (Customer Relations Management), and others. It took decades for them to become the software acronyms we know today.
It is not surprising that the term “Tender Management System” is still used incorrectly, considering its relative youth in terms of development and adoption.
This is confirmed by the search results returned by Google and by other web browsers, when you enter a term such as “Tender Management System” or similar terms like “Bid Management System“, and variations such as “software” and’solution”.
The results include a listing of software vendors that address the needs of:
- Proposals are used to supply goods and services
- The tender process is used to procure goods and services
- Tendering for goods and services
Take a look at these software’s functions and see where we think the term “Tender Management” or “Bid Management System” truly belongs.
1. Proposal Management – Supplier Side
First, there is confusion between Tender and Proposal.
Google search results for ‘Tender Management System” and similar searches will show a multitude of Proposal Software.
However, these solutions serve a completely different purpose. These solutions are designed to assist suppliers in developing proposals, presentations and responses to Request for Proposals.
These documents are less detailed, more flexible and less likely to be bound by contract restrictions and bidding regulations. The proposals and pricing are flexible and can be changed at any point during the process.
Since the introduction of software solutions in early 2000s, they have become increasingly popular for creating and managing proposals. They streamline the process, enhance collaboration and improve the quality of proposals. Many solutions include features like pre-designed templates and content libraries. They also offer collaboration tools, version controls, and automated workflows.
Businesses that submit tenders might be tempted to use proposal software. This will only cover a small portion of the journey, and you’ll need additional tools and software to manage the entire process.
2. Tender Management – Procurement Side
Second, there is confusion between procurement and supply.
E-procurement, as mentioned earlier, was introduced in early 2000s. European Union, for example, introduced the Electronic Procurement Directive 2004 which required that all public authorities use electronic means to procure public goods above a certain threshold.
This helped drive adoption of eProcurement in Europe. This global standard is now a reality with the adoption of e-procurement by other countries, regions and departments.
E-procurement platforms support different purposes in procurement.
- Suppliers can find information about advertised Contract Notices on government and regulatory websites, such as FTS UK and TED EU.
- Portals of procurement agencies that allow suppliers register their interest, download related documentation and submit their bid responses.
- Evaluation of tenders by the procuring agency and award of contracts.
E-procurement is an important tool for companies and government agencies looking to improve their efficiency, reduce costs and streamline their procurement process. Software now includes a variety of functions such as contract management, spend analysis, and supplier relationship.
It is not surprising that, due to the nature of this work, those in the industry refer to these systems as “Tender Management System”.
To be clear, however, since the primary function of these solutions is procurement, their naming and positioning should reflect that intended use.
3. Tender Management – Supplier Side
Now let’s look at the suppliers side of tender management.
Businesses bidding on high-value government and private sector contracts are required to source, qualify, create, submit and deliver the winning tenders.
This market is the least mature of the three. Many Bid Teams still use generic business tools, as we have already mentioned. Some large organisations have taken the expensive route of commissioning SAP or Salesforce to create a bespoke system. This is prohibitive for most.
Some organisations use generic tools such as content management systems, proposal software or project management solutions for specific activities. These solutions are only able to support isolated bid elements and can lead to inefficiencies.
Businesses are increasingly adopting a holistic approach to manage their bid activities by using a dedicated solution. Few dedicated software solutions are available that can fully cover the entire bid journey including the contract delivery stage, as shown below.
What is the role of Virtuoso?
It’s easy, it is the third option. Virtuoso truly is a ‘Tender or Bid Management System. It offers suppliers a complete, integrated end-to-end bid management solution, including:
- Tendering opportunities and sourcing
- Setting up and managing bid projects
- Information and documentation management: Creating, managing and storing information
- Compiling and reviewing bid responses
- All stakeholders should be involved in collaboration and communication
- Reporting and Analysis of Performance and Results
- Contracts delivery.
Virtuoso offers powerful tools, workflow automation, and AI capabilities that help streamline the process. It improves teamwork, reduces time-consuming repetitive manual tasks and secures the proper approvals and better manages risks.
It allows Bid Teams more time to craft compelling, competitive responses for tenders, which will result in higher evaluation scores, and more business!
