What is the process of requesting bids from vendors to provide goods or services called?

The process of requesting bids from vendors to provide goods or services is best described as bidding. In this context, bidding usually involves soliciting offers from vendors or suppliers who are interested in supplying specific goods or services at competitive prices. During this process, multiple vendors are invited to submit proposals that detail their costs and capabilities. This enables the organization to compare the proposals carefully and select the vendor that offers the best value in terms of pricing, quality, and service.

While other terms like "procurement," "quotation," and "negotiation" are related to the overall purchasing process, they do not specifically describe the act of soliciting bids in the same way. Procurement refers to the broader process of acquiring goods and services, which includes various steps such as defining needs, sourcing suppliers, and managing contracts. Quotation typically refers to the price proposal provided by a vendor in response to a request rather than the process of soliciting those proposals. Negotiation involves discussions after bids have been received, focusing on finalizing the terms and conditions of the purchase rather than requesting initial bids. Therefore, the term that accurately captures the essence of requesting bids is bidding.