SUPPLY chain professionals are confronted with a rapidly shifting business environment where volatile events seem to be waiting around every nook and corner of the business world.
We are in the midst of all the hustle and bustle in a business environment that seems to recognise volatility at every turn of the handle.
Businesses are increasingly navigating in an uncertain environment that poses more challenges than opportunities.
Embracing supply chain market intelligence will, therefore, position your organisation at a relative advantage in this increasingly complex global landscape.
It is now regarded as table stakes in many organisations’ strategic toolset. It is regarded as a nervous system of the supply chain. Without supply market intelligence, supply chain professionals are somewhat blind.
Supply market intelligence refers to the external information that organisations utilise to discover market intelligence variables in the supply chain community.
Competitive supply market intelligence refers to the ability to gather, analyse and use that information to understand competitor activities and general customer preferences.
Supply market intelligence is critical for supply chain professionals to harness accurate and timely information about supplier activities, supply market trends and current industry dynamics.
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Such key information will assist procurement professionals to craft data-driven decisions that will significantly drive value for the organisation.
Informed decision-making based on market intelligence enhances optimal utilisation of resources while minimising waste.
Supply market intelligence enables procurement professionals to do a critical analysis of previous supply chain data with a view to contextualise it and predicting future trends.
The contextual information gathered during market intelligence exercises will assist supply chain professionals to understand the evolution of key supply chain dynamics, placing current market trends into context.
Supply chain professionals need to understand beyond what happened in the past. There is need to have an understanding of what might happen, through the strength of predictive analytics.
Organisations will be in a position to analyse industry benchmarks and sector best practices in order to remain relevant in a highly competitive business environment.
They will be better positioned to identify opportunities to streamline processes, eliminating redundancies while reducing wasteful expenditures and staying one step ahead in the race for market dominance.
The road ahead for market-driven supply chains is paved with diverse forms of data. Supply chain market intelligence will reduce information asymmetry and uncertainty in the supply chain domain.
This will facilitate a clear understanding of the supply market dynamics. It will also significantly transform supply chain management into a more flexible, responsive and agile domain.
Market intelligence will assist in the development of a long-term strategy for the present and future needs of the business. Armed with current market intelligence, supply chain professionals will be in a position to negotiate better deals, optimise costs and achieve savings through strategic sourcing initiatives.
It allows them to improve service delivery based on the knowledge of customer preferences and competitor activities.
Supply market intelligence will assist procurement professionals to improve the level of understanding of their shortcomings with a view to improvise innovative ways to prevent them in the future.
It is often said that working with reliable suppliers is half of your success. Market intelligence enables organisations to identify reliable suppliers who consistently and reliably deliver high performance outcomes for the benefit of the whole supply chain ecosystem.
Supply chain market intelligence will certainly assist the business in evaluating supplier capabilities, supplier capacities and performance to keep the supply chain network working like clockwork.
Monitoring supplier performance through procurement market intelligence is critical. There is need to keep your eyes open on variables such as speed of delivery in full and on time.
It is, therefore, very important for supply chain professionals to create a detailed enough portrait of the supplier performance metrics, which will help unravel the supplier’s competitive capabilities.
It is important to unravel relevant supply chain metrics that support supply chain strategic goals to include important variables such as financial stability, delivery performance, quality standards, scalability and regulatory compliance.
By monitoring supplier metrics, the business can identify underperforming suppliers or areas for improvement.
Competitive supply market intelligence is also important for tracking changes in consumer behaviour, technological trends, supply market regulations and current economic indicators.
Supply market intelligence will, therefore, assist the organisation in identifying promising opportunities where they can confidently allocate material resources more efficiently by focusing on supply chain areas with the highest potential for return on investment.
Business intelligence provides insights into pricing trends obtaining in the market coupled with intimate knowledge of profitability levels in each category of expenditure.
It is, therefore, important to stay up to date with current market commodity prices and future price forecasts. With real-time data, companies can adjust their forecasts on the fly.
Supply market intelligence will provide you with benchmarking pricing, which enables procurement professionals to pay prices that are within marketing range.
There are various risks in supply chain. Risks associated with supply chains include financially unstable vendors, upstream supply chain interruptions, natural disasters or political tensions.
Discovering risks and opportunities before they become readily apparent is the need of the hour. Supply market intelligence will be vital in the provision of risk assessment reports that highlight geopolitical risks, market fluctuations and potential supply chain black swan events.
Supply chain market intelligence will play a vital role in managing risks, perceived or real. Such business intelligence will provide supply chains with valuable information that will assist organisations to anticipate and prepare for the ever-increasing supply chain disruptions.
Such pockets of valuable information will enable organisations to proactively mitigate risks and develop contingency plans to ensure uninterrupted supply chain activities.
Real-time supply market intelligence enables business people to swiftly make informed decisions in response to unforeseen challenges, especially where there is need to switch suppliers at short notice after your regular supplier experiences financial instability.
Market intelligence in supply chain has proven to be a vital cog in enhancing the operational efficiency of the organisation by exposing process gaps while at the same time crafting tactical approaches to mitigate supply chain risks.
Supply market intelligence facilitates supply chain optimisation by providing real-time insights into market conditions, enabling proactive risk management and informed decision-making.
This will enable supply chains to navigate the complex waters of risk management with greater precision and foresight. It will allow supply chain practitioners to connect the dots.
Supply chain disruptions are just too prevalent. Every now and then supply chains experience catastrophic events. Supplier market intelligence will assist procurement specialists to react well to surprises.
It will also assist in limiting the number of surprises. It is always advisable to resolve potential supply chain challenges before they happen or as they actually happen.
Supply market intelligence will assist organisations to unearth emerging potential threats from disruptive technologies early on. There is need to remain vigilant and keep your fingers on its pulse at all times.
Keeping tabs on the supply market surroundings can reduce supply chain disruptions and help organisations swiftly respond to market shifts.
Supply chain market intelligence will allow procurement specialists to use quick reaction buttons to respond to unforeseen supply chain disruptions.
Supply chain professionals will enhance their chances of getting early warning and unique insights into disruptive events that are likely to occur.
This will assist them in identifying alternative products or services to use as substitute products. It protects the organisation against blind manoeuvres.
Predictive analytics empowers procurement professionals to peer beyond the veil of uncertainty, ensuring that they remain at the forefront of new developments in their industry.
This will enhance the organisation’s ability to navigate the often-complex realm of supply chain disruptions with ease.
Regulations have grown in number and complexity. Government regulations and taxes can significantly change the business landscape.
Supply chain professionals are required to monitor regulatory changes that could have an impact on supply chain activities. Getting timely supply market intelligence about regulatory changes is critical.
Supply chain market intelligence will assist in the early detection of any warnings related to regulatory risks. It will, therefore, assist organisations to stay informed about regulatory landscapes by monitoring updates, legal requirements and industry standards.
It is important to constantly monitor suppliers’ track record and adherence to legal standards with a view to minimise risks. It is undoubtedly crucial in today’s dynamic business environment.
In conclusion, it must be noted that the ability to learn faster than your competitors may be the only sustainable competitive advantage as we move into the future.
It is very important for top management upstairs to always have a panoramic view of the surrounding supply chain domains. Supply market intelligence should, therefore, be regarded as an ongoing process.
There is need to always stay curious and continue to gather relevant up-to-date information on a regular basis. Once you embrace supply chain market intelligence in its entirety, you can be sure to easily leave your competitors in the dust.
Supply chain professionals will be able to make data-driven strategic decisions by leveraging a wealth of real time supply market intelligence.
Without credible data, procurement personnel often rely on gut feelings or old knowledge, resulting in less-than-optimal decision-making capability.
The ability to learn faster than your competitors may be the only sustainable competitive advantage. Market intelligence acts as your window into the present and the future of the state of the supply market.
This will uncover hidden patterns; predict future trends offering a glimpse into the future. It is about understanding an organisation’s ability to affect its future battlespace.
The future will obviously belong to those who can transform data into a competitive advantage, making supply chains not only a link in the chain of commerce but a driver of success.
When the organisation is fully aware of all its market specifics, it is not just about keeping up with current developments; it is about staying ahead of the curve.
It is about offering a host of short and long-term benefits to an organisation by taking control of the competitive space.
- Nyika is a supply chain practitioner based in Harare. — [email protected]
