Tendering Success: Why Understanding the Other Party’s Goals Drives Better Outcomes

Jim Bergman

In competitive bidding and tendering, success isn’t just about presenting the lowest price or the most appealing offer – it’s about mutual understanding and collaboration. When each tender/bidding party takes the time to grasp the other’s objectives and works toward helping them succeed, procurement becomes more than a transaction – it becomes a strategic partnership that fosters long-term value.

Why Mutual Understanding in Tendering Matters

When both parties recognize each other’s goals, the tender process moves beyond rigid selection criteria and fosters:

  • Stronger trust & transparency – Misaligned expectations can lead to frustration, while clear mutual understanding builds reliable partnerships.
  • Better value creation – Knowing the deeper needs of the buyer allows bidders to offer solutions beyond price considerations, enhancing service quality and long-term benefits.
  • More effective negotiation – When bidders understand a buyer’s objectives, discussions become collaborative, rather than competitive or adversarial.
  • Higher success rates for bidders – Suppliers who tailor proposals to help buyers achieve their goals stand out from competitors.

Key Areas of Understanding in Tendering

  • Customer’s Strategic Priorities – Is the buyer focused on cost savings, innovation, sustainability, or risk reduction? Bidders should align their offerings accordingly.
  • Operational Challenges – Understanding a buyer’s pain points enables bidders to present tailored solutions that address actual business problems.
  • Long-Term Procurement Vision – Some buyers prioritize stability and relationship building over short-term price advantages—bidders must recognize this and position themselves strategically.
  • Compliance & Ethical Considerations – Knowing regulatory and corporate responsibility expectations helps bidders submit compliant, value-driven proposals.

How Tendering Parties Can Foster Mutual Understanding

  • Conduct Pre-Tender Discussions – Engaging with buyers before submission provides critical insights into their real priorities.
  • Ask Thoughtful Questions – Instead of focusing solely on technical specs, bidders should inquire about business objectives and future procurement goals.
  • Offer Customizable Solutions – Flexible proposals that align with a buyer’s needs can create win-win scenarios that benefit both sides.
  • Maintain Open Communication Throughout the Process – Regular engagement ensures expectations remain aligned, reducing misunderstandings post-selection.
  • Showcase How the Proposal Helps Achieve Success – Clearly articulate how your bid supports the buyer’s strategic vision instead of just listing services.

Conclusion

Tendering isn’t just about submitting a competitive bid – it’s about understanding the other party’s goals and demonstrating how you can help achieve them. When both bidders and buyers engage with transparency, alignment, and strategic foresight, procurement becomes more collaborative, effective, and value driven.

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Published by Jim Bergman

Jim Bergman is a commercial contract professional with global experience spanning the USA, Latin America, UK, Europe, China, South Korea, Japan, India, SE Asia, the Middle East, Africa and Australia. He has worked on a wide range of direct and indirect spend categories in numerous sectors, developing a deep knowledge of services, goods and technology procurement and sales. Across this wide array of commodity and services experience, Jim has found the keys to success in maximizing value for money through customer-supplier relationships founded on innovative category management and strategic sourcing practices, key performance metrics and measures, as well as Total Cost of Ownership principles and collaborative contracting tenets. He has shared his knowledge through advisory engagements, as well as in developing and delivering training programs both on-line and in classrooms, in both open-enrollment and internal environments. Jim has assisted his clients through all phases and steps of contracting, negotiation, strategic sourcing and bidding processes, demonstrating value generation in excess of $250 million. His audiences and clients have included over 7,000 attorneys and commercial professionals students from over 1,000 corporations and public-sector entities.

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