Competitive bidding is a sourcing approach in which multiple eligible suppliers submit offers against a defined requirement and evaluation process. Fair comparison depends on clear scope, consistent instructions, controlled clarifications, declared criteria, and documented decisions. Competition can inform value and market choice, but the appropriate method depends on risk, complexity, urgency, supply conditions, and policy.
In plain English
It invites comparable offers from more than one qualified supplier.
Illustrative example
At Northstar Industrial Systems, procurement issues the same packaging specification and commercial schedule to qualified suppliers, then evaluates responses under published criteria.
- Related terms
- RFx; Bid comparison; Supplier qualification; Award scenario
- Lifecycle stages
- Source; Award
- Stakeholders
- Procurement; Supplier; Operations