So, your company needs a good or a service and you now have to choose a procurement process. Typically, procurement processes are split into competitive and non-competitive groups. Competitive procurement involves opening the process to bids and tenders to obtain the best value. Non-competitive procurement (sometimes called “sole source” or “single-source” procurement) happens when the buyer either selects the company to buy from or restricts the bidding process to certain suppliers.
There are benefits to both types of procurement and your decision to use one or the other could change depending on your company’s current needs. Some companies use both competitive and non-competitive procurement, setting strict guidelines for each (i.e. goods or services over a certain dollar amount must be competitive while under that dollar amount can be non-competitive).