Supply Market Analysis for a Competitive Advantage

Abstract. Supply management professionals should use supply market analysis in their sourcing process to establish and maintain a competitive advantage while also reducing supply risk. Supply market analysis includes developing a commodity profile, examining cost structures, researching suppliers, and identifying key market indicators. Supply Market Analysis vs. Market Intelligence Market Intelligence is a term currently experiencing rapid growth and broader acceptance within professional supply chain management organizations. In a supply chain management context, market intelligence can be defined as the process of gathering and analyzing information relevant to a company’s supply markets specifically for the purpose of supporting accurate and confident decision making in the procurement process. The concepts of “supply market analysis ” and “market intelligence ” are closely related and while each can be conducted independently, supply market analysis should be understood to be a key element and integral part of any robust market intelligence program. Both concepts involve the gathering, recording, and analyzing of data and information about customers, competitors, and the market at large in order to facilitate better decisions