Tender Management Software Market:
The global tender management software market is projected to witness a CAGR of 11.3% during the forecast period (2020-2026). This growth is mainly attributed to increasing government initiatives and regulations for e-procurement, rising demand for cloud-based solutions, and increasing focus on cost optimization.
Additionally, the growing adoption of Big Data Analytics by governments and enterprises to drive better insights from procurement data is further propelling the market growth. The need to automate tendering processes in order to reduce processing time and effort associated with integrated documentation is also driving the market growth. Furthermore, advancements in technology such as artificial intelligence (AI) are expected to provide new opportunities for vendors operating in this space.
However, factors such as high initial investments and lack of awareness about tender management software solutions among small-scale organizations are expected to hinder the growth of the market. The demand for tender management software is increasing due to its advantages such as cost savings, improved transparency in the bidding process, and enhanced collaboration between buyers & suppliers. Additionally, vendors are focusing on providing innovative offerings in order to increase their market penetration. For instance, in October 2018, SAP launched a new cloud-based e-procurement solution called SAP Ariba Network that helps companies increase efficiency and improve business agility.
The global tender management software market has been segmented into deployment mode, organization size, industry verticals, and regions. Based on deployment mode, the market has been segmented into on-premise and cloud. The demand for cloud-based solutions is increasing owing to their advantages such as scalability and cost-effectiveness.
In terms of organization size, the global tender management software market has been divided into small & medium enterprises (SMEs), and large enterprises. SMEs are anticipated to exhibit a higher growth rate due to increasing awareness about the benefits associated with tender management software solutions.
The Global Tender Market:
The global tender management software market has been further classified based on industry verticals such as government, energy & utilities, healthcare, manufacturing, IT & telecom, education, retail & eCommerce. Among these segments, the government sector is expected to account for the highest share of the market due to the increasing application of tender management software in public procurement processes.
Based on region, the global tender management software market has been segmented into North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and Latin America. The market in North America is anticipated to hold a significant share owing to the early adoption of tendering solutions by government bodies and enterprises in this region. On the other hand, APAC is expected to witness a higher growth rate due to the increasing penetration of these solutions in countries such as India and China.
Overall, the global tender management software market is expected to register double-digit growth during the forecast period on account of advancing technology trends coupled with increasing demand for automation of tendering processes, and rising awareness about the advantages associated with these solutions.
Key vendors operating in this market include SAP SE, Tranzuway Solutions Pvt. Ltd., Proactis Holdings Plc., Infosys Limited, Oracle Corporation, Gramit Software Solutions Pvt. Ltd., Procurify Technologies Inc., Zycus Inc., GEP LLC, TenderEasy BVBA, and HCL Technologies Limited. Vendors are focusing on providing innovative offerings such as AI-based solutions in order to increase their market share. In addition, they are also adopting strategies such as acquisitions & mergers to expand their presence in the global tender management software market.
For instance, in April 2018, Proactis Holdings Plc. acquired the entire issued share capital of CloudTrade Limited in order to expand its product portfolio and gain a competitive edge over other vendors operating in the market. Similarly, Zycus Inc. acquired Orbita Tech Solutions Pvt. Ltd., a technology-driven spend management solution provider to strengthen its position in India and APAC regions. These strategies are expected to drive the growth of the global tender management software market during the forecast period.
Also, governments across various countries are gradually moving towards digital tendering processes which is providing an impetus to this market’s growth and helping it further evolve on a global level as well as creating new opportunities for new players. Furthermore, the market is expected to get a major push from public sector organizations as they are increasingly relying on tender management software solutions for government procurement processes.
Overall, the global tender management software market is anticipated to exhibit significant growth during the forecast period and create multiple opportunities for vendors operating in this market. However, the high implementation cost associated with these solutions may hinder their adoption among small & medium enterprises (SMEs). Thus, vendors are focusing on developing low-cost offerings specifically targeting SMEs. This could potentially reduce the cost burden on them while allowing them to reap the maximum benefits of tendering solutions. Such strategies are likely to boost the growth of the global tender management software market during the forecast period.
What is Tender Management?
Tender management is the process of managing and governing all activities related to tendering. It involves the development, submission, and evaluation of bids, contracts, and proposals in response to customer needs. Tender Management solutions provide an automated platform for businesses to manage the entire tender lifecycle from initiation through to award. This includes features such as creating requests-for-quotation (RFQs), disseminating documents, evaluating bidders, awarding suppliers, and ensuring compliance with contract terms. Furthermore, these solutions offer a centralized repository for tracking tenders as well as providing visibility into every stage of the bid process allowing companies to make better-informed decisions on contract awards.
Importance of Tender Management:
Tender Management solutions are becoming increasingly important for businesses as they provide a streamlined and automated approach to the tendering process. This helps organizations optimize their procurement processes, reduce manual errors, ensure compliance with legal obligations, and increase operational efficiency. Furthermore, these solutions can be used to monitor supplier performance in real-time and track payment cycles; enabling companies to reduce costs associated with late deliveries or non-compliance with terms. Additionally, Tender Management solutions can also help businesses prepare accurate bids quickly; resulting in faster turnaround times for customer orders and better customer satisfaction levels. Finally, these solutions can also help organizations build long-term relationships with suppliers by providing greater transparency in business transactions.
Key Challenges with Tender Management:
Despite the numerous advantages of Tender Management solutions, there are also some challenges that organizations must consider before adopting these solutions.
- High Competition: In many industries, there may be a large number of bidders for a tender, which can make it difficult for businesses to stand out and win the contract.
- Tight Deadlines: Tenders often have strict deadlines for submission, which can be challenging for businesses to meet, especially if they have limited resources or are working on multiple tenders simultaneously.
- Compliance Requirements: Tender management is subject to various regulations and compliance requirements, including those related to procurement, contract management, and data privacy. Ensuring compliance with these requirements can be a time-consuming and complex process.
- Lack Of Transparency: The tender process can sometimes lack transparency, with some organizations being accused of favoring certain bidders over others. This can create a perception of unfairness and undermine the credibility of the process.
- Cost Considerations: Tenders often require businesses to provide detailed cost estimates and pricing information, which can be challenging to develop accurately. This can be further complicated by fluctuating commodity prices and other economic factors.
- Limited Information: In some cases, businesses may have limited information about the tender requirements, which can make it challenging to develop a competitive bid. This may be due to the tender documents being incomplete or unclear, or a lack of communication with the organization issuing the tender.
Overall, these challenges can make tender management a complex and challenging process. However, by developing a strong tender management strategy and adopting best practices, businesses can increase their chances of success and win new contracts.
Reasons/Symptoms of Bad Tender Management
Bad tender management can have several reasons and symptoms that can negatively impact the procurement process and the business’s overall success. Here are some of the reasons and symptoms of bad tender management:
- Poor Communication: Lack of communication between stakeholders can lead to misinterpretation of requirements and create confusion in the procurement process. This can result in inadequate bids and poor-quality proposals.
- Inadequate Planning: Lack of planning and poor organization can result in missed deadlines, rushed proposals, and poor-quality bids.
- Insufficient Resources: Tender management requires adequate resources, including personnel, technology, and funding. Insufficient resources can result in delays, inadequate proposals, and missed opportunities.
- Lack of Expertise: Tender management requires specialized expertise, including knowledge of procurement regulations, industry standards, and contract management. A lack of expertise can lead to poor-quality proposals and unsuccessful bids.
- Limited Market Analysis: A lack of market analysis can result in inadequate market research, inaccurate cost estimates, and poor-quality proposals.
- Ineffective Risk Management: Ineffective risk management can result in poor-quality proposals, increased costs, and potential project failures.
Symptoms of bad tender management may include missed deadlines, poor-quality proposals, low bid success rates, inadequate vendor selection, increased procurement costs, and project failures.
Overall, bad tender management can have serious consequences for businesses, including lost opportunities, increased costs, and damage to their reputation. By addressing these reasons and symptoms, businesses can improve their tender management practices and increase their chances of success.
Visure Requirements ALM Platform:
Visure offers a modern enterprise ALM platform and requirements management tool for organizations in safety-critical industries, enabling them to ease their compliance process, gain full traceability across the development cycle and accelerate their requirements elicitation phase.
It offers product and system development teams out-of-the-box features, including full traceability, tight integration with MS Word/Excel, risk management, test management, bug tracking, requirements testing, requirements quality analysis, requirement versioning and baselining, powerful reporting and standard compliance templates for ISO 26262, IEC 62304, IEC 61508, CENELEC 50128, DO-178B/C, DO-254, FMEA, SPICE, CMMI, and more.
Visure’s plugin helps you streamline the tender process, providing insightful analytics into responses from suppliers to identify their compliance with requirements. The Specific Permission Management System also aids in collecting these replies during the initial stages of the process. Visure is here to give your business an edge over its competition!