Unveiling the Benefits of SWOT Analysis for Procurement Organizations

Mar 1, 2019

With the expansion of supply chains across the globe, the risk of disruption has also increased.  Businesses are compelled to move goods over longer distances and increase the number of transfer points in the transportation process. This increases the chances of missed connections or in-route delays. Moreover, the lack of centralized management in most extended supply chains can sometimes make it difficult for organizations to control costs.

The problem further escalates when companies outsource certain aspects of operations or when some companies add volumes from new business to lower costs. In both situations, the focus of an organization should be on identifying opportunities to reduce the company’s cost structure. This creates the need for organizations to conduct a SWOT analysis.

At SpendEdge, we understand that SWOT analysis can play a major role in analyzing the effectiveness of a company’s supply chain. Therefore, our team experts has highlighted the key benefits that companies can gain through an effective SWOT analysis.

Want to know how SWOT analysis can help your organization in analyzing the effectiveness of the supply chain? Get in touch with our experts today!

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Benefits of SWOT analysis for organizations


It is one of the major advantages of conducting a SWOT analysis. Any procurement official who has a sound understanding of your company’s inventory management practices can perform a SWOT analysis. However, the person should be able to identify the vendor’s core competencies, their willingness to extend favorable payment terms, and the ability to hold inventory for extended periods.

Provides a visual overview of the business

SWOT analysis is represented in the form of a two-by-two matrix with each quadrant representing strengths, weaknesses, opportunities, and threats. The visual presentation of the elements of the SWOT analysis provides an understandable overview of the company’s supply chain and its strategic planning process. It further helps companies to determine discrepancies in the supply chain and provides opportunities to capitalize on them.

Wondering how to identify discrepancies in the supply chain? Request a free proposal and know how our experts can precisely conduct a SWOT analysis for your organization and guide you with customized solutions.

Unveils new opportunities

With the advent of technologies, numerous business opportunities keep arising that can improve the supply chain. SWOT analysis makes it easier for decision makers to  identify those opportunities and utilize them within the strategic planning process to implement new cost reduction initiatives. Also, it can be a great tool to improve the turnaround time of incoming parts and materials.

Identifies threats

A threat is an element that makes it difficult or impossible for companies to achieve their organizational goals. SWOT analysis in procurement management helps companies to determine current and future threats to the supply chain. This also involves analyzing any vendor decision that can pose a problem to the company’s supply management. It can be any decision such as vendors eliminating products affecting supply or longer lead times due to industry-wide material shortages.

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