Supply market intelligence is created when information is collected externally and analyzed to come up with actionable conclusions that will impact the company’s ability to locate, secure and manage sources of supply strategically. The importance of supply market intelligence has emerged over the years as globalization has grown the need to understand logistics risks. This has facilitated a more focused examination of supplier intelligence and the need to understand industries and markets that suppliers are operating. Supply market intelligence is recognized widely as a strategic component for procurement initiatives, supply chain, and strategic sourcing. SMI takes valuable time to gather information and involves the high cost of purchasing resources; therefore, many professionals in small and large organizations find it challenging.
SMI consists of three pillars: market research, which revolves around data, how to get it and analyze, and the related methods and applications. Secondly, competitive intelligence involves acquiring information, for instance, competitive changes and other value levers that play for a strategic purpose. Thirdly, the process of collecting and analyzing data relevant to the company’s supply markets. All three pillars support the company’s goal of enabling decision-making in the logistics processes that are accurate and confident. Information that makes up the broader body of intelligence comes up from, google, following feeds on social media, and reading publications on trade collection; this could lead to a more advanced market intelligence approach.
Through market supply intelligence, a procurement organization can develop a good amount of its business pain. This is by collecting data related to capabilities of the supply markets and following up on the developing competition while managing their supply base and getting to understand the key trends affecting the demand for strategic purposes.