THE SUPPLY CHAIN MANAGEMENT BID PROCESS: AN EXAMINATION OF PROPOSAL RESPONSE AND BIDDING DECISIONS

Abstract

This research is intended to examine transportation suppliers coming up short due to participation in and response to bidding procedures. A mixed-methods approach is utilized to investigate the bid process and related outcomes for the transportation supplier. This study explores the bid process from the perspective of the transportation supplier. The first study is based on a quantitative approach, utilizing the Analytical Hierarchy Process methodology (AHP). The second study uses qualitative methodology, specifically utilizing semi-structured interview protocol. For the quantitative analysis, key factors related to the bidding process were studied, as the basis of the review. These factors were found through a systematic review of the literature, and are internal and external in nature. The results are that, of the factors studied, the Firm Related Internal Factor of Need for Work and Tender Related External Factor of Type of Bid are of the greatest significance when determining to bid. Key themes emerge from the semi-structured interviews, leading to the Assertation of Bid Submission Assessment, including a systematic review of relationships, current market conditions, and risk appraisal for the transportation supplier. This research explores economic, relational and strategic impacts on supplier performance aligned with the bid process, and how supply chain companies can build effective bid responses to enable practitioners to improve stability and financial performance, while avoiding supply chain disruptions. To better understand proposal response will aid the transportation supplier with restoring profitability levels lost, due to the bidding process (buyer to transportation supplier).