On the other hand, market intelligence helps the procurement team make well-informed decisions related to procurement. Nevertheless, collecting accurate data is gradually becoming difficult due to the changing of external nuances.
Like the geopolitical factors, global health emergencies such as the pandemic, and economic conditions. The procurement team checks all these external factors and considers them while making decisions.
This blog goes over the usage of the data of supply market intelligence that will ultimately improve procurement.
What is referred to as supply market intelligence?
Supply market intelligence is the gathering of all external information that is used for finding and managing goods and services. This information includes customers, suppliers, competition, and markets.
With all this information, procurement becomes better in managing risk, ensuring customer satisfaction, negotiating with the suppliers, finding scopes of cost savings—all this helps gain a competitive advantage and successfully source services or products.
Supply market intelligence has the ability to empower all the sourcing practices and procurement practices and gives the scope to think beyond the already present traditional processes.
How is supply market intelligence acquired?
There are several sources and channels to acquire the relevant information on supply market intelligence.
For every procurement professional, it is essential to conduct comprehensive research to purchase the picture of the prospective supplier to make the best decisions. The various channels through which supply market intelligence are acquired are as follows:
Internal Sources: If the suppliers are known to businesses, there will already be records and information that can be accessed to get the current market intelligence data.
Also, if any company has a system of supplier management relationship, it would provide information on supplier performance and risk profile. Internal meetings with stakeholders will also help understand the supplier's relationship.
Suppliers: One of the most valuable resources of information is the suppliers. They help provide the actual knowledge of the markets and the factors that affect the supply chain.
Also, data can be acquired from company websites, RFPs, one-to-one meetings, and annual financial statements. All these data together help provide a clear picture of an individual supplier.
Research services: Another way to acquire information on the supplier market Intelligence is with the help of an external provider. The several providers from where procurement can take help from. The various providers are hybrid intelligence, custom, and market research providers.
Desk research: The internet is one of the best sources to acquire relevant and accurate information regarding supplier market intelligence. Through this source, you can use various other channels through which the procurement team can acquire relevant knowledge.
The multiple channels include Google alerts, Analyst reports, Price index forecasts, Newsfeeds, Competitors websites, Trade publications, Blogs, social media, and others.
To Conclude
Supply market intelligence helps businesses to make proper decisions and act as per the customer's requirements. This allows the companies to remain competitive as well.
Firms aware of the value of supply market intelligence will make the best use of it to maximize profit. With a detailed understanding of the suppliers, markets, and external factors, businesses will also have the power to control the costs of delivering their products.
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