What Is a Change in Supply?

Supply market analysis refers to systematically collect, sort and analyze basic data such as supplier, supply price, supply quantity, and supply risk for the purchased goods in order to meet the needs of the current and future development of the company, and make purchasing decisions for the company. Provide evidence.

Supply market analysis

Right!

Supply market analysis refers to systematically collect, sort and analyze basic data such as supplier, supply price, supply quantity, and supply risk for the purchased goods in order to meet the needs of the current and future development of the company, and make purchasing decisions for the company. Provide evidence.

Chinese name

Supply market analysis

Attributes

Continuous innovation of technology

Nature

The changing supply market

Method

Changes in the social environment

Many large companies, such as IBM, Honda, Lucent Technologies, and Philips Electronics, have introduced the concept of the company's merchandise team, responsible for sourcing strategic parts and materials on a global scale. supplier. Initially supported by professionals, the company's commodity procurement staff gradually assumed the activities of conducting procurement market research themselves. The main factors that influence buyers to conduct active supply market research are the following.

(1) Continuous innovation of technology

Whether it is a manufacturing company or a commercial trade, in order to maintain competitiveness, it must be committed to product innovation and quality improvement. When new technologies appear, companies or companies need to conduct a lot of research on the choice of the final supplier when making self-made and outsourcing decisions.

(2) Continuous changes in the supply market

The international supply market is constantly changing. Political agreements between nations will suddenly limit some export trades, suppliers will disappear due to sudden bankruptcy, or they will be acquired by their competitors, which will affect price levels and the sustainability of supply. The same changes in demand The demand for a product will rise sharply (such as the demand for Pentium microprocessors in the mid-1990s), resulting in shortages. Buyers must anticipate possible changes in the supply and demand of a product, and thereby gain a better understanding of the dynamics of their own commodity prices.

(3) Changes in the social environment

The relatively high wage levels in Western Europe have caused changes in the supplier market. Due to lower wages in developing countries, many European retailers' textile supplies have changed, and they have moved their supply base from Europe to the Far East.

(4) Changes in exchange rates

The changing exchange rates of many major currencies have created new challenges for buyers operating internationally. Many countries' high inflation, huge government budget deficits, and rapid changes in exchange rates require buyers to respond quickly to the redistribution of their raw material needs.

(5) Product life cycle and industry transfer

Industry transfer and technological progress have not only changed the distribution pattern of the supply market and reduced manufacturing costs as a whole, but have also put forward new requirements for the formulation of procurement strategies, implementation of strategies and procurement management, and brought about new changes, mainly reflected in: It is in the decision-making of home-made and outsourcing that the share of outsourcing is increasing; the second is that procurement is developing towards the purchase of components and finished products; the third is that the globalization of procurement is increasing, and the localization of procurement is also accompanied by production Localization requirements have been strengthened; fourth, the supply market and supplier information are more transparent; fifth, technology development has made many companies completely dependent on supplier partnerships.

Supply market analysis may be cyclical or project-based. Supply market analysis can be a qualitative analysis used to collect trends and development trends in specific industrial sectors, or a quantitative analysis that obtains a large amount of data from comprehensive statistics and other public resources.Most supply market analysis includes these two In terms of supplier benchmark analysis, it is a combination of qualitative analysis and quantitative analysis. Supply market analysis can be either short-term or long-term. There are no strict steps in the analysis of the supply market. The limited time usually has a certain impact on the analysis process, and each project has its own method, so it is difficult to provide a standard method. But in general, the supply market analysis mainly has the following steps.

(1) Determine the goal.

What problems are to be solved, to what extent are they solved, how long does it take to resolve them, how much information is needed, how accurate is the information, how is the information obtained, who is responsible for obtaining the information, and how to handle the information are all contained in a concise overview.

(2) Cost-benefit analysis.

Analyze the content of the cost, the time required for the analysis, and analyze whether the benefit obtained is greater than the cost paid.

(3) Feasibility analysis.

What information is available in the analysis company? What information can be obtained from public publications and statistics? Do I need to obtain information from international databases and their professional agents and obtain product and market analysis from it at a lower cost? Do you need to purchase research, analysis services, or even go out to research from some departments?

(4) Formulate the analysis plan.

Determine the specific actions that need to be taken to obtain the information, including goals, work content; time schedule, responsible person, required resources, etc. In addition to desk analysis, interviews with suppliers are needed, plus field research. Desk analysis is the collection, analysis, and interpretation of task data.They are generally collected by others and are most commonly used in procurement.Field research is the collection, analysis, and interpretation of details that cannot be derived from desk analysis. Look for new information and prepare for such analysis with detailed project plans.

(5) Implementation of the plan.

In the implementation phase, it is important to follow the plan of the analysis plan. (6) Write a summary report and evaluation. After the analysis of the supply market and the collection of information, the obtained information and intelligence must be summarized, summarized, and analyzed. On this basis, a summary report is presented, and different supplier selection schemes are compared. The evaluation of the analysis results should include the degree of solving the preliminary questions, and whether they are satisfied with the methods and results.

Specific analysis content includes: supply market research, supply market risk analysis.

(I) Supply market research

The supply market research mainly consists of three parts: the first is the process of the supply market research; the second is the analysis of the supply market structure; the third is the macro, meso and micro supply market analysis.

1. Supply market research process

The main tasks of this process include:

(1) Determine the target;

(2) Effectiveness analysis;

(3) Feasibility analysis;

(4) Formulate research plans and implementation;

(5) Summary report.

2. Analysis of supply market structure

The main analysis of market structure is the type of market competition.

(1) Completely competitive market;

(2) Complete monopoly market;

(3) Monopolistic competitive market;

(4) Oligopoly market.

Why study different competitive markets?

3. Macro, meso and micro supply markets

When researching the supply market, you can follow this idea: from big to small, from coarse to fine.

(II) Risk analysis of the supply market

If the supply risk can be reduced, there is a lot of room for cost reduction. Therefore, it is the content that purchase decisions must focus on and analyze. This should generally be done before new suppliers are evaluated and selected for approval; existing suppliers can also be analyzed regularly.

Supply risk analysis includes four phases: preparation phase, analysis evaluation phase, action improvement phase, and summary improvement phase.

1. Preparation stage

This stage includes all preparations before the supply market risk analysis and evaluation.

(1) Identify potential risks and whether a risk analysis is required;

(2) Determine the reasons for the risk analysis, formulate the criteria and methods for the risk analysis, and define the scope of suppliers and procurement items designed for the risk analysis;

(3) Identify the persons involved in the risk analysis and propose further work plans.

2. Analysis and evaluation stage

At this stage, a checklist can be used as a guide, and the evaluation team conducts such questions as suppliers and site inspections.

(1) Evaluation content

general situation;

Management countermeasures and measures;

Quality assurance system;

Design and engineering capabilities;

Planning and supplier management;

Market and customer service;

Environmental management;

(2) Four states

According to the above evaluation and inspection elements, according to the actual situation, it can be divided into four states: not applicable, red, yellow, and green.

Not applicable: It means that this element is not applicable to the supplier, and it can be skipped in actual evaluation;

Red: It means that the supplier has serious potential risks to the enterprise for this element, which does not meet the requirements of the enterprise, and must take corrective action immediately;

Yellow: It means that the condition of this element is not too good, can not fully meet the evaluation requirements of the enterprise, and needs further improvement;

Green: The condition of the element is good or exceeds the requirements of the enterprise.

3. Action improvement phase

This stage is mainly based on the evaluation and analysis of the survey results. Researchers and evaluation teams should, with the coordination of the company's procurement staff, propose to the supplier corrections and improvements to the red status elements and yellow status elements that exist in the supplier

4, summarize the improvement stage

This stage is closely related to the previous stage. If suppliers are willing and able to improve, there is a basis for summing up improvements.