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 in response businesses respond to business.
Businesses with a global footprint to secure government and non-government organization business primarily win, 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) including filing a suspicious activity report (SAR):
- 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 its important to understand which country and if an opportunity to participate if seeking country or outside of country applicants.
As important for the business is to understand when the anticipated tender could be published, when to respond and estimated size of of volume and value. Companies reacting or planning based on the annual or semi-annual contract with continued growth may be satisfactory.
Companies wanting to explore growth within the country of interest but across divisions or expanding to other countries is even more challenging within no historical oversight or awareness of tenders.
For companies desiring explore would require future insights based on historical predictive demand globally and within the country and commodity of interest.
Predicting demand globally, within country and across commodities using best practices such as machine learning are a tremendous effort as a non-core activity for a company but would benefit highly from receiving this insight from a trusted partner or a syndicated report.
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; companies can benefit from such insight to integrate 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 faire 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 goods and services are fair market value.
Banks can also benefit from Tender Demand Management planning to categorize goods and services into a commodity category to identify customers involved in higher-risk activities and 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 are services volumes are consistent with the actual market demand, need and volume.
Similarly, government agencies can utilize the tender demand analytics to similarly set guidance, governance, validation, and oversight of banks, corporations and NGOs.
Compliance organizations at Corporations, Government and NGOs, as would government oversight agencies, can benefit from demand analytics to assure 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 on the tender need, country, industry, size, estimated price and estimated price to win range and competitive companies.
Applying advanced analytics to Business with Tenders and Tendering
The application of these analytics are applied to any industry vertical including healthcare, logistics, products, services, defense across global and country specific businesses.
The syndicated output is a standard need however many prefer visualization tools requiring custom set-up and servicing to incorporate clients tenders, tender wins and losses.
Analytics for Living provides Tenders and Tendering tool, TenderCast, to better predict demand and win award rate.