BLOG

Is Supply Market Intelligence Relevant in Procurement: All You Need to Know

Jun 1, 2018

Procurement is slowly gaining traction and increased strategic importance within companies. This has raised the bar of expectation from procurement professionals to do much more within a limited time frame. This is where the role of supply market intelligence comes into the picture. To make the best decisions possible without falling behind, procurement professionals must ensure that they have access to and effectively use supply market intelligence. But before we get into further details of how supply markeRequest Demo_SEt intelligence is relevant in procurement, let’s get into some basics:

What is supply market intelligence?

Market intelligence consists of three pillars. The first is market research, which principally involves data — how to get it, provide access to it, store and analyze it, and the many methods and applications for doing so. The second pillar is competitive intelligence, which consists of obtaining information such as competitive dynamics, disruptors and other value levers at play for strategic purposes.  Lastly, the third key pillar is the process of gathering and analyzing data and information relevant to a company’s supply markets. All three ultimately support the goal of enabling accurate and confident decision-making in the procurement process. Therefore, from a procurement perspective, market intelligence is often referred to as supply market intelligence (SMI).

Importance of supply market intelligence to organizations

Collecting large amounts of data such as the cost, price, additional benchmarks, KPIs, best-fit suppliers, and negotiation levers, among others — to inform a sourcing process is a difficult task. But factors such as the rapidly increasing number of sources and a limited amount of time and resources (shrinking teams, shared services approaches) for organizations to deal with just makes things even more difficult. This is the reason most organizations are pushed into seeking out market intelligence. Market intelligence is necessary to help tackle any aspect of most of these challenges. An organization will be able to alleviate a considerable amount of its business challenges by gathering data on supply market capabilities, getting a good read on how the competition is developing, managing their supply base and supply chain, and understanding key trends driving or otherwise affecting the market — ultimately utilizing these for strategic purposes. By leveraging external signals and data to refine and enhance product plans internally, identify competitive opportunities, and map the execution of better sourcing strategies to support overall business requirements, businesses can leverage buying power and compete effectively.

How relevant is supply market intelligence?

Several procurement practitioners and their organizations are making conscious investment efforts in supply market intelligence planning and capabilities — especially with help from third parties. As more number of players are slowly recognizing the importance of supply market intelligence, they are dedicating an increased number of workforce to build on this capability. Today, improving analytical, procurement, modeling, and reporting capabilities to support market intelligence initiatives has become a higher priority than capabilities that had previously been emphasized. Ultimately, the degree to which market intelligence is built upon data and analysis, enabled by various parts of the organization, and deployed for different purpose-driven ends ultimately speaks about how relevant it is, and will continue to be, for procurement teams.


To know more about how supply market intelligence can help enhance procurement in organizations

Get More Info_SE


Related Posts

Procurement Consulting Market: All You Need to Know

5 Undeniable Benefits of Procurement Market Intelligence

How Can Manufacturing Companies Attain Procurement Excellence

 

Getting Down To Business

We are offering Free Trials to all our customers or prospects who have been impacted positively or negatively by Covid-19 and are looking to connect with prospect buyers immediately.

Contact us

Sourcing and Procurement Market Intelligence Services

Products and Tools

Featured

Services Overview

Category Market Intelligence

Supply Market Analysis

Low-Cost/Best-Cost Country Sourcing

Benchmarking

Spend Analysis

Cost Modeling and Should-Cost Analysis

Total Cost of Ownership (TCO) Analysis

Supplier Risk Analysis

Supply Chain Risk Assessment

Supplier Sustainability Assessment

Commodity Price Forecasting

Category Management

Supplier Negotiations

Contract Management

Procurement Store

Purchase Ready-to-use Reports

SEinsightsTM

Our Robust Procurement Platform

BizVibeTM

Suppliers and Buyers Marketplace

SUPPLY MARKET ANALYSIS FOR A METAL MANUFACTURING COMPANY HELPS ACHIEVE ANNUAL SAVINGS OF $15 MILLION

Industries

Industries Overview

Automotive and Tire

Banking, Financial Services and Insurance

Biotechnology, Pharmaceutical and Life Sciences

Chemicals

Energy

Food and Beverage

Industrial and Manufacturing

ICT, Media and Entertainment

Mining, Metals and Minerals

Retail and CPG

Transportation

INCREASING LOCAL PROCUREMENT BY 28% FOR A COMPANY IN THE METALS AND MINING INDUSTRY – A CASE STUDY BY SPENDEDGE

Resources

Featured

Resources Overview

COVID-19 Resources

Blogs

Case Studies

Whitepapers

Webinars

Press Releases and Media Mentions

5 KEY CORONAVIRUS RISK ASSESSMENT STRATEGIES TO OVERCOME HEALTHCARE SUPPLY CHAIN CHALLENGES

IDENTIFYING STRATEGIC PURCHASING PRACTICES FOR A COMPANY IN THE US FOOD SERVICE INDUSTRY | SPENDEDGE’S LATEST SUCCESS STORY

COVID-19

Featured

Overview

Buyers

Diagnostic Test Kit

Additional Resources
Contact

A LOOK INTO THE FUTURE OF THE FOOD AND BEVERAGE INDUSTRY AFTER THE COVID-19 PANDEMIC

Identifying the Top 100 Coronavirus (COVID-19) Test Kit Manufacturers Across Regions

Clients

Featured

Clients Overview

Who We Serve

Case Studies

SUPPLY CHAIN MANAGEMENT HELPS AN IMPORT AND EXPORT INDUSTRY CLIENT ENHANCE SUPPLY CHAIN VISIBILITY

REALIZING SAVINGS OF $15 MILLION IN PACKAGING SPEND FOR AN FMCG CLIENT – PACKAGING SOURCING STRATEGY

About Us

News

About SpendEdge
Why SpendEdge?
Vision, Mission and Values
Clients
Social Impact
Global Offices

Press Releases and Media Mentions

Upcoming Events & Webinars
Request Free Proposal