Glossary: Supplier Bidding Tools & Approaches
Bid Sheet - A document or online list of items that a buyer needs to procure, which is presented to potential suppliers to respond with their bids based on the buyer's requirements and preferences for those items. Bid sheets typically include item names, item specifications and descriptive attributes, pricing considerations, quantities, delivery timeframe, location, packaging, shipment modes, alternative/substitute items considered, certification requirements, and more. Bid Sheets may also be referred to as an RFP (request for proposal) or RFQ (request for quote) and are part of an online bidding/sourcing event. [Refer to: CombineNet's Expressive Bidding® features.]
Expressive Bidding - A term that is a registered trademark of CombineNet in the U.S., Expressive Bidding enables buyers and suppliers to conduct business in a flexible bidding environment, which allows suppliers to bid to their strengths and buyers to analyze sourcing scenarios based on this expressive data. Expressive Bidding involves and encourages the collection and analysis of price and non-price bid data, acknowledging that a buyer's decision is not often based solely on lowest cost. [Refer to: Expressive Bidding Details.]
Reverse Auction - A bidding event or process where the role of buyers and sellers in an auction are reversed, typically utilized in a business-to-business procurement function. Rather than having one supplier with multiple buyers competing to pay more to obtain the good or service for sale, a reverse auction involves a buyer inviting numerous suppliers to compete on who can provide the desired good or service at the lowest price while meeting the necessary requirements. A reverse auction is typically a time-sensitive event and involves an open bid forum, where suppliers have visibility into each other's bids and can submit descending-price bids in reaction. [Refer to: White Paper - How Expressive Feedback Differs from a Reverse Auction.]
RFI - Request for Information. Part of a business's sourcing and procurement process involving the collection of documented information from potential suppliers, to evaluate them as candidates for providing goods and services to the consuming business. [Refer to: CombineNet's RFxpress For Rapid Online RFI, RFP Development] http://www.combinenet.com/products/esourcing-product/rfxcreation.php RFP - Request for Proposal (often used interchangeably with RFQ, request for quote, or RFT, request for tender). The stage in a sourcing and procurement process where invited suppliers are asked to respond to a documented set of requirements for goods and/or services sought for purchase. [Refer to: CombineNet's RFxpress For Rapid Online RFI, RFP Development.]
RFx - Refers to any "request for" process or document in a sourcing and procurement process, including RFI (request for information), RFP (request for proposal), RFQ (request for quote), and RFT (request for tender). [Refer to: CombineNet's RFxpress For Rapid Online RFI, RFP Development.]
Sealed Bid - Traditionally, a sealed bid is a response to an invitation to bid on an item or service, where the bidder seals their bid response so that the information is not revealed until a specific time when all bids are opened to then determine the winning bidder. In a business procurement context, a sealed bid is the approach of inviting suppliers to respond to a request for bid/request for proposal in a way that the suppliers' responses are not revealed until a determined date and time. This approach is in contrast to a reverse auction, where suppliers' bids are openly shared with each other.