Throughout the world, millions of tons of supplies are moved every single day and delivered from factories to stores. Supply chain management is one of the most important aspects for any business, and ensures that customers get their orders on time. Despite its crucial role across all industries ranging from oil and gas to high technology, a large number of organizations lack the tools and decision making strategies to successfully harness its power. This is where supply market intelligence comes in.
Supply Market Intelligence or simply SMI involves the collection and analysis of supplier market data to develop strategies for procurement. It includes all the principles and elements involved in building a stronger and more efficient supply chain that will improve organizational performance and in turn boost profitability. Supply Market Intelligence also includes integrating IT and data systems, standardizing practices, and creating strategic partnerships to achieve long term goals.
Supply Market Intelligence or simply SMI involves the collection and analysis of supplier market data to develop strategies for procurement. It includes all the principles and elements involved in building a stronger and more efficient supply chain that will improve organizational performance and in turn boost profitability. Supply Market Intelligence also includes integrating IT and data systems, standardizing practices, and creating strategic partnerships to achieve long term goals.
The Importance of Supply Market Intelligence
Businesses around the world are moving towards new ways of running things like lean management. Supply Market Intelligence can also be used in a similar manner to improve performances as discussed below:
Improving the Procurement Process
Supply Market Intelligence can help transform the procurement process and make it more closely aligned with organizational goals and expected consumer demand.
Category Management
Another benefit of SMI is the focus on category management, which allows individual leaders to understand the landscape of markets and form mutually beneficial partnerships with potential supplies. It also allows businesses to effectively conduct risk management studies relevant to their particular market or product area.
Harnessing the Power of Data
Thanks to the advances in information technology, corporations are now able to collect market data. However, using that data is a different matter altogether and SMI can help analyze that data in a meaningful manner. It can also help reduce supply risk, identify opportunities for expansion, and assist in leveraging market advantage over competitors.
How SMI Supports Strategic Sourcing
We have already established what Supply Market Intelligence is and how it can help businesses improve performance and obtain better results. SMI is a key element in strategic sourcing – read on to learn more:
Businesses around the world are moving towards new ways of running things like lean management. Supply Market Intelligence can also be used in a similar manner to improve performances as discussed below:
Improving the Procurement Process
Supply Market Intelligence can help transform the procurement process and make it more closely aligned with organizational goals and expected consumer demand.
Category Management
Another benefit of SMI is the focus on category management, which allows individual leaders to understand the landscape of markets and form mutually beneficial partnerships with potential supplies. It also allows businesses to effectively conduct risk management studies relevant to their particular market or product area.
Harnessing the Power of Data
Thanks to the advances in information technology, corporations are now able to collect market data. However, using that data is a different matter altogether and SMI can help analyze that data in a meaningful manner. It can also help reduce supply risk, identify opportunities for expansion, and assist in leveraging market advantage over competitors.
How SMI Supports Strategic Sourcing
We have already established what Supply Market Intelligence is and how it can help businesses improve performance and obtain better results. SMI is a key element in strategic sourcing – read on to learn more:
- SMI helps supplement ground intelligence with detailed research to identify cost and demand drivers.
- It also helps identify changing trends in existing and new markets, as well as the measurement of effects of emerging technologies.
- It is crucial in understanding geopolitical risks and having better geographic knowledge of worldwide markets and suppliers.
- SMI helps reduce the market data processing cost while maintaining quality and allowing to mine it for key indicators that affect your business.
- One important part of Supply Market Intelligence is harnessing technology to achieve better results across the board.
- SMI also revolves around shifting the focus towards sourcing decisions and maintaining a competitive edge in the market.
- Another crucial advantage of SMI is that it allows the reduction of supply chain interruption thus promoting the company’s image and assuring continued deliver of products and services.