Procurement Research – Supply Market Knowledge is an Asset
An investment, by large organisations, in procurement research is necessary as a competitive advantage. International competition has a significant impact on the ability to differentiate products and services from competing organisations. Procurement research requires a range of skills and this application that buyers do not have the time to expend. The ‘day job’ prevails. That is the argument we encounter a lot and we have sympathy with it. What are six activities that we engage in when carrying out research for our clients?
- What is the extent and nature of the potential supply chain?
- Are there new entrants who offer more robust products/services?
- What are the contracting strategies used by our competitors?
- What are the medium and long term risks that need managing?
- How can we more effectively manage offshore suppliers?
- What are the economic forecasts for the cost drivers?
There is an international business who invests in procurement research to the extent of circa 25% of the total buyers’ operating budget for salaries and overheads. It has a target return on capital employed and is accountable for results. Has anyone examined the potential for procurement research in your organisation? We can help you in two ways (1) with the initial review and (2) by conducting procurement research for you.
