Why do we bother to collect Market intelligence on the strategic commodities we are sourcing? The solution is that if we do not we might be subjected to unnecessary supplier risk and any competitive advantage we thought we’d may be lost. Supplier risk can be present anywhere, anytime and with any provider.
Supply Marketplace Analysis. Market Intelligence
Supply market intelligence is a Present buzz-phrase currently gaining rapid vulnerability. It is basically an update of distribution market analysis and could be described as the process of collecting, filtering, distilling and presenting information related to a provider’s supply markets. The specific aim is to support accurate and positive decision making from the procurement procedure. A properly implemented and educational supply market study requires that considerable and disparate quantities of study materials be collected through secondary and primary research. Traditionally, supply market Analysis has included developing a commodity profile, analyzing cost structures, researching providers, and identifying key market indexes. Having the ability to able to build a supply market analysis for a given product is a skill that is essential for each supply chain professional to master
Primary and secondary research
Primary research is information Gathered through interactions with different individuals typically through meetings, one-on-one structured interviews, focus groups, and surveys. Main research with current and potential sellers is often more valuable and enlightening than secondary research. The deluge of information available on the World Wide Web, both dependable and guess can be accessed equally by countless users. Primary research is a vital element towards developing a competitive advantage.
This is the fun bit. Secondary Research is information gathered from existing literature, books, broadcast media, as well as other non sources. This is normally easier to collect than main and is often valuable in connection with the effort expended. Whether you are analyzing the mro industry outlook for male personal hygiene products in Southern Africa for the next five decades or an in-depth evaluation of prospective capital flows and investment trends in hospital building, it is all-out there. A recent study on the South African economic environment forecasts that the pharmaceutical sector will grow considerably faster than other sectors because of a strong continuing demand for primary health level medications, like generics, antibiotics and over-the-counter treatments.
Intelligent Measures to take towards really knowing your product
- Create the Commodity Profile
Find out the international Product classifications and record the commodity definition. Consult widely and get a thorough comprehension of the important technical and quality problems.
- Determine the Price Structure.
Over and above the usual adding up of raw material costs, labor, transportation, energy, overheads etc, you can be more innovative. Listed companies are required to publish financial statements and do presentations on their business outcomes. Scour this advice for clues to their price profiles.