Four Reasons for the Increasing Significance of Procurement Research
Procurement research is a critical element of the procurement procedure, which helps the business achieve greater transparency in the sourcing process, making the business cost-efficient and reducing supply risks. Procurement research provides data and insights to support decision-makers across the procurement lifecycle, from opportunity identification, strategy development, to continuous monitoring and evaluation.
There are various benefits of procurement research. Some of the reasons for its increasing significance are mentioned below.
- Operational Agility – Real-time and accurate intelligence gathered through procurement research can help channelize organizational resources on key strategic priority areas, and minimize the time and effort required in order to react to changing supply market dynamics. Procurement research can also help identify in-house versus outsourcing requirements (make or buy analysis) via in-depth analysis of associated cost and value drivers.
- Sourcing Efficiency – Companies want to ensure they are engaging with high-quality suppliers while also being able to minimize the cost of procurement. Comprehensive procurement research can provide stakeholders a detailed supply landscape, targeted list of potential suppliers, and thorough evaluation of their capabilities and prices. It can also suggest feasible sourcing options in low-cost regions.
- Technological Transformation – Procurement research can uncover technological innovations and disruptions in the supply market. It can provide stakeholders an in-depth understanding of the potential benefits of new technology. Companies can evaluate the integration of such technology/innovation with their offering to gain a significant competitive advantage.
- Risk Management – Procurement research is a valuable tool that helps in maintaining a robust supply chain and mitigating any risk of operational disruption. It can provide early warning signs on events that may negatively affect material availability and supplier performance. Effective procurement research enables organizations to develop proactive strategies for dealing with such events and minimize the impact on their business.
Procurement research allows organizations to leverage internal spend data and external market intelligence for effective category management. Since information gathering and analysis are carried out by experts, the procurement team can focus on strategic objectives, and instead of just cost-cutting, work toward value addition.
Accurate and timely intelligence gathered through procurement research helps stakeholders make informed decisions, enabling them to achieve greater cost savings, reduce supply risk, effectively manage the supply base, and add strategic value to the organization.
Aranca offers procurement research and advisory services through its dedicated category-specific teams and credentialed analysts. We have access to the best data sources and do not just provide facts but also intelligence and insights that are not available from published sources alone. We leverage our expertise in both primary and secondary research and create a unique analytical perspective. Procurement research is a crucial requirement for an organization, and its many benefits are making it a much-needed service for businesses today.