How many suppliers do you typically invite to tender?
I'm interested to understand how many suppliers people invite to their tenders?
It depends on category, type of dynamics involved (Monopolistic market, technology product etc.). Minimum 2 suppliers should be there so that you can have quotes for comparison. Ideally 3-4 suppliers for negotiation and win-win situation. In exceptional cases, 7-10 suppliers are also invited.
In a recent RFP for trucking in Europe, I have invited 20 suppliers as few suppliers are providing services in 2-3 european countries, few other suppliers providing services in 1 country etc.
So in a nutshell it is totally dependent on case to case basis.
Number of suppliers to tender depends on how many of them are approved for the tender or for the products. Tenders such as those published in the OJEU do not have an upper limit of number of suppliers who can submit bids. In our organization, we invite all suppliers who are approved or demonstrated capability for the product / service. However, more resources will need to be allocated towards tender finalization and reporting the results of the tender. For an organization that manages using third party tools, it should not be a problem at all. The tender results are compiled and reported soon after the tender opening process.
Probably not want you want to hear Lewis, but the number will depend on the commodity or category being put to the market and its complexity/risk. As a general rule of thumb and no other reason other than it is manageable, I try and work with 4. There is no right or wrong.
As many as possible. Iin my experience is has been around 5 or 6. Above that number the tendering process becomes overwhelming in terms of proposal analysis, meetings, supplier presentations and communications during the tendering process. Additionally in some cost categories, there are not so many players that meet your requirements. If on top of that you add compliance topics the supply might be even lower, specillay in developing countries/economies.
3-7. Need at least 3 to see what the market is offering and make some conclusions on that. 2 is not enough. More than 7 and it starts to become highly repetitive and an "overburden" on the evaluation team. You can certainly start off with more suppliers as you investigate the market but when you get down to reviewing all the materials, 3-7 is generally ideal.
Essentially as many as a) meet your need to create competition and/or understand the market and b) that you are prepared to manage and review the outcomes. Typically I tend to stick to 3/4/5, after some initial market benchmarking, as this is then a limited field of informed options I believe can add value and/or some leftfield options to hopefully identify innovation. It means the process is manageable (especially if you have multiple tenders in flow) and is fair to the suppliers.