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Sourcing Market Research – 3 Powerful Strategies
Effective sourcing market research empowers procurement with crucial insights on trends, store data, and consumer demand.
Don’t shy away from requesting product samples; thorough testing with your team helps make informed decisions.
Conduct evaluations to assess product performance, supplier communication, delivery, and product condition for better sourcing.
When it comes to sourcing market research, there are many strategies that you can find online. For this article, we are going to eliminate the articles that make empty promises and focus on tactics that can really bring your procurement game to another level.
We will discuss three powerful strategies that can help with your sourcing market research. These strategies should help you with developing your procurement process and the smooth procurement of needed materials for your company.
After reading this article, you should have a basic idea of how to use sourcing market research for your procurement process.
The 3 Powerful Strategies of Sourcing Market Research
For a procurement process, sourcing is one of its important steps. It’s clearly defined that sourcing for new potential sources of quality materials should be the first step for procurement. That’s because clearly, one can’t buy new materials if there is no available source for it.
In our procurement articles, we’ve discussed the importance of finding the right source for high-quality materials. This is especially true for indirect procurement. We explained how some companies actually depend on these materials for the continued operation of their organization. This is the reason why companies are using these three powerful strategies in order to conduct sole sourcing market research:
1. Product Research
You’ve probably heard of product research over and over again. Well, we’re incredibly sorry, but you’ll just have to bear with it because, in the procurement process, product research happens to be very important.
It’s so important that it’s part of our Negotiation Course For Procurement Professionals as well! We are going to train every procurement trainee on how to do actual product research, so if you’re interested, make sure to get yourself enrolled at once!
If you’re going to buy a product, then you need to understand the product. This is a sort of golden rule among procurement managers. Market research is essential to success; without it, you run the risk of buying products that will not sell at all.
Remember, when doing product research, always look at the following:
- Trends – Always look at trends in the product category and look at how companies deal with the trends.
- Store Data – When you look at specific stores, what do the numbers tell you? Are the products interesting enough to keep the store afloat?
- Consumer Demand – Finally, check if the products are in high demand. Have a look at what the consumers are asking for. Make sure to get every data available.
2. Asking for Product Samples
Are you one of those procurement specialists who dislike asking for samples? Well, we at Procurement Tactics are about to tell you to stop being a wuss and actually ask your sourcing prospects for samples!
The best procurement manager is one who knows the advantage of asking for samples. This way, you and your procurement team can have a closer look at the product. After testing it, gather with your team and discuss your findings.
You can also take the samples to your team and have them test them out and look for anything weird or strange with the product. If you have a dedicated team that looks into these things, then even better. Carefully record everything observed with the samples.
3. Giving an Evaluation
After the samples and trial run, it’s time for the procurement manager and his/her team to give their evaluation.
Whether or not the company chooses to move forward with the supplier, giving an evaluation is something that both the procurement team and the supplier can appreciate. Check to see if the product achieved the goals you’ve set. Did the product overperform or underperform? How was the product received in stores?
Also, evaluate how well the procurement team communicated with the supplier.
- Did the products arrive on time? Were there any problems with the delivery?
- Were concerns addressed by both teams without any further issues?
- Were the products in good condition when they arrived?
The following evaluations will give you and your team ideas of how to move forward with product sourcing. Never hesitate to evaluate all suppliers after the production run.
Mastering sourcing market research is vital for effective procurement. The three practices described above empower procurement professionals to make informed decisions, ensuring the selection of reliable sources for their organizational needs.
What is Sourcing Market Research?
Sourcing market research is the process of gathering data to identify suitable suppliers and products.
Why does Sourcing Market Research Matter?
Sourcing Market Research matters because effective sourcing market research optimizes procurement, ensuring quality, cost-efficiency, and supplier reliability.
What are 3 Power Strategies of Sourcing Market Research?
The 3 Powerful Strategies of Sourcing Market Research are Product Research, Asking for Product Samples and Giving an Evaluation.
About the author
My name is Marijn Overvest, I’m the founder of Procurement Tactics. I have a deep passion for procurement, and I’ve upskilled over 200 procurement teams from all over the world. When I’m not working, I love running and cycling.