What is competitive procurement in SAP PSM-GPR - Procurement for Public Sector?

SAP Term: competitive procurement

• Component: PSM-GPR

• Component Name: Procurement for Public Sector

• Description: A procurement of goods or services that is done using competitive procedures.

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• Key Concepts: 
  Competitive procurement is a process used by public sector organizations to purchase goods and services from external suppliers. It involves the use of a competitive bidding process to select the most suitable supplier for the organization’s needs. The process is designed to ensure that the organization obtains the best value for money and that the supplier is selected on the basis of their ability to meet the organization’s requirements.
  
  How to use it: 
  The competitive procurement process begins with an invitation to tender (ITT). This is a document that outlines the organization’s requirements and invites suppliers to submit bids for the goods or services required. The ITT should include details of the evaluation criteria that will be used to assess each bid. Once all bids have been received, they are evaluated against the criteria set out in the ITT and a decision is made as to which supplier is most suitable for the organization’s needs. 
  
  Tips & Tricks: 
  When preparing an ITT, it is important to ensure that all relevant information is included. This includes details of any specific requirements that must be met by suppliers, such as quality standards or environmental policies. It is also important to ensure that all evaluation criteria are clearly defined and that they are applied consistently when assessing each bid. 
  
  Related Information: 
  The SAP PSM-GPR Procurement for Public Sector module provides organizations with a comprehensive solution for managing their competitive procurement processes. It includes features such as automated bid evaluation, contract management, and supplier performance monitoring. The module also provides organizations with access to a range of analytics tools that can be used to analyze procurement data and identify areas for improvement.