Procurement market intelligence is the foundation of e-procurement process decisions. Market intelligence is about the product/material sourced, its price, the available suppliers, and the other market information that is essential to enable the negotiation of the best deals. Since these parameters are subject to change, being constantly updated is very important. e-procurement in India becomes important for e-commerce businesses.
The procurement company must first have complete and up-to-date knowledge about the material to be sourced. The leading suppliers in the market for that particular material should also be recognized. The company’s advantage is if the material is sourced at the most profitable prices and delivery times from a reliable supplier. An injudicious selection of a supplier can adversely impact the company’s manufacturing process and its bottom line.
To get the advantage of the most favorable price, the procurement company must know the market trends in pricing. It is only when the cost, labor, transportation, and other cost components are factored in that. the procurement team can better negotiate a favorable and realistic price.
Why Is Procurement Market Intelligence Important?
The sourcing of materials on time and at the best rates, all the while always mitigating costs, is the responsibility of the procurement company. the company’s manufacturing processes are directly affected by time and costs, and taking decisions at this stage is critical. As the e-procurement decisions are based on the procurement market intelligence report, this report is essential. So, a company’s attention to procurement market intelligence is important to the company’s overall health.
Saving money is the top priority of every business. Intelligent e-procurement in India is one of the biggest profit drivers, spend analytics. It can help companies to save money and allow procurement companies to easily new vendors by comparing costs, adding a threshold on a project, employee, or department spending, showing spending patterns, and preventing overpayments with contract analysis.
Negotiate better bids
Intelligent procurement tools help procurement professionals evaluate market prices and request fair prices. It precludes your team from entering any negotiation blind.
Gain better supplier insight
When supplier market intelligence is assembled, procurement software can show companies where to buy and whom to buy from. A 2018 study showed that about 30% of companies suffer from “poor supplier performance and uniformity” to compare supplier performance and pricing we use an intelligent permanent system so that they can work with effective, tried, and tested vendors who consistently provide the best value.
Create effective category plans
Procurement software helps construct category intelligence over time. Category managers create categories and sections, company spending according to similar or related products or services, and organize the latter by value, supplier, type, or volume. Procurement intelligence estimates these category plans, which leads to improved scale and stronger supplier relationships.
Intelligent procurement helps companies to take strategic decisions. It focuses on both internal and external factors such as purchase needs and budget vs. supply shortages. Automation tools moderate risks associated with wrong procurement decisions. It not only leads management to work with the right vendors but also reduces human errors such as repeat purchases or administrative mistakes.
The need for sustainable, transparent supply chains is increasing every day. companies are enabled to align themselves with the right seller and distribution channels through procurement intelligence and it provides them with a long-term view of their spending, resources, and procurement process to make settlements toward becoming more environmentally friendly and economically sustainable.
Assess all opportunities
Intelligent procurement tools enable companies to know the opportunities where a working relationship with a supplier can take a new shape. Whether sourcing products differently or updating contracts. about their sourcing and purchasing patterns, companies can think differently.
Promote growth and innovation
Data analysis always leads companies to find patterns, catch mistakes in their processes, and see the big picture of their operations. Intelligent procurement helps you to discover new knowledge about your company, suppliers, and industry so you can come up with new methods to promote growth and innovation.
As we have seen procurement market intelligence is how much important for business if you want to get procurement market intelligence services you can visit one of the best company websites 13sqft. Com. 13sqft is the B2B digital platform built especially for warehousing, logistics, and cold chain. This provides you with the end-to-end procurement facility at the PAN India location.
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