In which stage does commercial negotiation activity typically begin in the procurement cycle?

In the procurement cycle, commercial negotiation activities typically begin during the stage of issuing an invitation to tender or request for quotation. This stage involves inviting suppliers to present their proposals, which are then followed by negotiations based on the responses received.

At this point, the organization starts to engage with potential suppliers to discuss terms, pricing, and conditions, setting the groundwork for any future agreements. The negotiation process can really take off based on the information gathered during the tendering stage, including aspects such as pricing, service levels, and contract terms.

The options presented in this question each relate to different stages of the procurement process. Supplier selection typically follows negotiations and is based on evaluating the responses received. Bid or tender evaluation also comes after receiving bids and determining which supplier best meets the requirements, while market/commodities and option research occurs early on to inform the organization on potential suppliers and market trends. Thus, it's clear that the commercial negotiation aspect is intricately tied to when invitations for tenders or quotations are first issued, marking the beginning of direct discussions with suppliers.