The job of procurement specialists is to source direct materials and check that they come on time. It reduces prices to a significant extent.
However, while trying to attain these objectives consistently, they always encounter dynamic external factors like economic circumstances. These factors affect procurement endeavors and should be monitored to make good procurement decisions.
Companies can get an in-depth insight into the supply market landscape through market intelligence reports that give a global and regional market overview and supplier analysis. Thus, it can promote the overall success of corporate purchasing.
What Is Procurement Market Data and Analysis?
Before knowing the advantages of procurement market analysis and data, it’s best to understand what it means and how data intelligence is gathered. It can depend on manual search and other kinds of efforts that are labor-intensive.
But the intelligence can also be based on third-party services. These collect data from numerous sources for good analysis. Irrespective of the data source, three significant aspects of procurement market data and analysis should be aligned. These include the following.
Market research
The initial part of a good market data and analysis entails finding the kinds of data you should gather and how you will access it. It’s also essential to see how data will get stored and analyzed.
It lays the foundation for a robust supply market analysis or intelligence and deserves a high amount of attention. Extensive procurement market intelligence reports encompass a comprehensive assessment of market, supply, and pricing along with macroeconomic trends that impact them.
You can know the estimated market size and industry expenses according to the category data subdivided by business unit, geography, and demography.
Competitive intelligence
Another significant element is competitive intelligence, and this component relates to collecting and assessing varied factors. These factors can be value levelers. They include competitive dynamics, disruptors, and the like. The data of these aspects is gathered quantitatively.
Supply market analytics
Supply market analytics also forms the basis of intelligence. The procurement specialist must find and analyze correct data about the supply chain markets of a company. The data associated with it is very dynamic.
The Significance of Procurement Market Analysis or Intelligence
Manual data gathering is not adequate in various business environments at present. There are many intricate moving parts in market analysis, and each of them demands much attention.
Irrespective of the method used, procurement market analysis is important. It plays various roles that include the following.
● Identifying appropriate suppliers – For almost 23 percent of businesses today, finding quality suppliers is a challenge. The impact of getting the wrong supplier can ruin enterprises financially. This issue can be effectively prevented with a robust procurement market analysis.
● Assessment of spend data trends – Businesses that rely on automated sourcing tools for procurement market analysis gain many benefits. Payment management functions are one of the most beneficial tools.
It has been shown that sourcing and spending analytics are two aspects in procurement that will be much affected by technology soon. The capacity to accurately and speedily assess the spend data and trends eliminates other pain points.
● Full supplier analysis and risk monitoring – Another aspect that gets improved via market analysis is the capacity to analyze current supplier relationships and risk factors. Supplier risk assessment is a vital tool in automated solutions today. Suppliers scoring lies at the topmost part of the essential benefits of automated sourcing tools.
Many businesses in various domains cannot address common pain points using manual data analysis methods. It gets perfectly done through an automated process. Timely intelligence aids companies in making insightful decisions about existing and new suppliers. Thus, they can save more money and minimize risks.
