What is the purpose of 'tendering' in procurement?

Tendering in procurement primarily serves the purpose of selecting a contractor from multiple bidders. This process allows organizations to solicit competitive bids for goods or services, thereby facilitating a transparent and fair selection process. When multiple suppliers are invited to submit their proposals, it encourages competition, which can lead to better pricing, quality, and innovation in the offerings.

By comparing different bids, organizations can evaluate each supplier's ability to fulfill the requirements, assess various factors such as cost, capability, and service levels, and ultimately choose the supplier that best meets their needs. This selection process is essential for promoting accountability and ensuring that the chosen contractor delivers value for money, aligns with ethical standards, and meets the organization's specific requirements.

The other options, while relevant to aspects of procurement, do not accurately capture the essence of what tendering specifically aims to achieve. Defining contract terms pertains more to the finalization stage of procurement, managing supplier relationships focuses on ongoing interactions after selection, and negotiating prices typically relates to individual supplier negotiations rather than the competitive process central to tendering.