Supply Market Analysis is done as part of analysing the external factors that may impact on an organisation’s procurement decision making process.
Supply market analysis is used in the strategic sourcing process to establish and maintain a competitive advantage while also reducing supply risk.
Supply market analysis includes developing a commodity profile, examining cost structures, researching suppliers, and identifying key market indicators.
Together with other assessments, such as supply chain analysis, supplier differentiation assessment and identifying potential suppliers,
one would get a well-rounded view of the external factors that may impact on an organisation’s procurement decision making process.
Objective:
Supply market analysis is used in the sourcing process to establish and maintain a competitive advantage while also reducing supply risk.
Supply market analysis includes developing a commodity profile, examining cost structures, researching suppliers, and identifying key market indicators.
Output:
- Market dynamics in terms of Porter’s Five Forces
- Macro economic impact in terms of PESTLE analysis
- SWOT Analysis
WHAT IS SUPPLY MARKET ANALYSIS?
Supply market analysis is a technique used to identify market characteristics for specific goods or services.
It provides information that is critical to developing effective procurement strategies, in the context of planning for significant procurement.