Description
During this information gathering and analysis phase, the team typically looks at trends in the supply market, using tools such as Porter’s Five Forces Analysis. The team carries out supplier analysis to determine who the major suppliers are, how they are organised in the market and what the item’s main cost drivers are. This information is usually collected from suppliers or industry bodies. This is done to get a clear understanding of external factors that influence the procurement of the commodity. It involves the analysis of the external supply chain, the market dynamics that shape the industry, and who the suppliers are in this industry.
