What is Supply Market Intelligence and Its Role in the Retail and CPG Industry?
Supply market intelligence helps companies gain crucial insights into their organization’s needs, customers’ patterns, competitors’ strategies, and changing market dynamics. Understanding your market, competitors, customers, and industry is imperative to developing sustainable strategies, accurately meeting organizational needs, and maintaining a strategic edge. With data, analytics, relevant information, and unparalleled insights, creating well-informed, relevant, and practically applicable strategies becomes a viable solution to industry challenges. Increasing competition, versatile consumer needs, constantly evolving markets, and fluctuating trends have made the retail and CPG industry increasingly challenging, competitive, and data-reliant. Therefore, companies are leveraging supply market intelligence, to ensure their business plans enable sustainable growth, widespread expansion, high customer satisfaction rates, and increased profitability. Recognizing the value and importance of supply market intelligence can help businesses capitalize on the benefits, improve organizational performance, and champion their industry.
Why is Supply Market Intelligence Important?
Finding the Right Suppliers: With relevant data regarding the organization’s market dynamics, trends, drivers, and changes, and insights into suppliers’ costs, market developments, competitive prices, and services, companies can choose the ideal suppliers for their business. Information regarding partnerships with previous clientele, technology trends and expectations, changing prices of raw materials, and major supplier trends, helps identify suitable potential partners, develop data-driven expectations, conduct accurate negotiations, and sign mutually beneficial contracts. Additionally, with a comprehensive understanding of the supplier’s market, it is easier to develop a communicative, transparent, and supportive partnership, leading to sustainable business relationships, and better benefits.
Analyzing Data: The rise of digitization, automation, and networks and has led to increasing exposure and dependence on data and analytics. Utilizing data to assess various impacting factors, minimize risks and challenges, and improve efficiency can reduce error rate, increase transparency, and ensure accurate decision-making. Additionally, automated tools that assess trends, spend patterns, and other relevant factors enable identifying and mitigating various challenges, addressing shortcomings within the organization, improving inter-departmental collaboration, determine clearer business goals, and reduce costs. Analytics have become imperative to businesses and ensure that spend, inventory management, purchase orders, production costs, and other expenses are curbed, controlled, and appropriately managed.
Identifying Risks: Supply market intelligence provides companies with relevant data regarding potential developments, challenges, and risks in the industry, market, and organization. With the right data, businesses can identify, evaluate, and formulate strategies for upcoming risks, and minimize potential losses. This is also helps find internal organizational shortcomings, and make necessary changes to minimize their impact, or potential fallout, by changing, eliminating, or monitoring risk-inducing factors. With in-depth research into the market, companies can predict upcoming changes in demand, supply, prices, or industry developments, and continuously stay ahead of the curve with preemptive strategies.
Benchmarking and Monitoring: Researching competitors’ strategies, industry expectations and developments, and changing consumer expectations provides departments and managers with crucial insights into industry standards and benchmarks. Benchmarking enables data-driven strategies that aim to meet a predetermined target, and helps surpass the offerings of key competitors. It also helps prepare for potential challenges, understand necessary requirements, and develop comprehensive and actionable business plans. Additionally, with the relevant data, information, and benchmarks available, the company can frequently evaluate performance, compare major metrics with industry standards, ensure targets are relevant and achievable, and help their various departments keep pace with the rapidly evolving market.
Improving Credibility: Data-based recommendations and strategies provide departments and managers with unparalleled credibility, transparency, and valuable information. Utilizing analytics, supply market intelligence, and relevant data helps offer stakeholders with credible, valuable, and actionable information. It also enables clear communication, easy collaboration, and mutual major targets for multiple departments to meet. Higher credibility of proposed strategies, actions, and changes can enable more inter-departmental unity, accurate targets and goals, unified efforts, and sustainable efforts for growth, expansion, and cooperation. Supply market intelligence and high credibility also help professionals and organizations develop more trusting and honest strategic partnerships, better negotiations, and higher compliance rates.
With the tumultuous and challenging nature of the retail and CPG industry, companies often find themselves unable to determine the ideal path forward, and fail to improve operations, achieve targets, maintain strong partnerships, and lead their market. A big-box store chain witnessed a sudden decline in productivity and profitability, and was unable to maintain long-term partnerships, or determine clear targets for their business. A lack of understanding about the market, industry developments, changing consumer needs, evolving competitor strategies and other major factors led to a decline in consumer satisfaction, employee engagement, and positive relationships. Therefore, the retail giant chose to partner with SpendEdge to utilize data, supply market intelligence, and analytics to acquire a comprehensive understanding of their evolving market, organizational needs, changing industry, and necessary goals. With the guidance and recommendations provided by SpendEdge experts, the client successfully mitigated major risks, evaluated and capitalized on upcoming growth drivers, created a more interactive and transparent workspace, and met consumers’ needs. The implemented changes also helped the retailer identify sustainable, highly valuable, and beneficial partnerships and propelled company growth, value, and market share substantially.