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The Government of South Australia shares their guidelines for conducting in-depth and rigorous market analyses. Organizations often conduct basic “market research” or gather up some “market intelligence”, but without conducting rigorous and practical analyses and/or lacking in an eye toward how it will inform their acquisition/procurement strategy. 

What are the key takeaways?

A few points I’d like to emphasize is that this guide is positioned to enable procurement professionals to gain an understanding of:

  • the importance and benefits of undertaking market analysis;
  • how to plan and conduct effective market analysis;
  • the use of various market analysis models;
  • the relationship between market analysis and the development of an appropriate acquisition strategy.

A key point made above is the linkage between market analysis and the acquisition/procurement strategy. As such, the guide covers specific and practical areas of analyses that result in specific informing insights into the acquisition/procurement strategy and how to engage the supplier base in the “award” stage of the 3 -phase acquisition/procurement life cycle (Phase 1: Pre-award, Phase 2: Award, Phase 3: Post-Award). As cited in this guide:

“Market analysis is a key consideration in developing an appropriate acquisition [procurement} strategy. It is integral to maximising value in the expenditure of public money and to fulfilling a public authority’s procurement objectives in a timely manner and at an acceptable cost and risk.”

This guide lays out guidance on how to conduct rigorous and practical market analyses. It covers the key things to look for when analyzing a supply market, the kind of data to collect and how to analyze it to help shape your acquisition/procurement strategy. The guide also provides general guidance on the various sources for market intelligence as well as leveraging RFIs to directly collect market information. Finally the guide covers supply chain analysis (often also referred to as “value chain analysis”) and how it can be useful.

“Moving beyond simple price-driven decisions and the idea of a “technology checklist” requires the addition of innovation oriented criteria to your scorecard.”

Full Report: Government of South Australia

Image Courtesy of Etereuti

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