What are the best practices for conducting market research and benchmarking for your purchasing categories?

A pesquisa de mercado sempre deve ter um foco especifico para evitar que a mesma seja ampla demais, respondendo diversos tópicos sem profundidade o que podem acarretar uma vis?o errada sobre a commodity ou setor.

Define the scope of your research, including the geographic coverage, time frame, and sources of data. Decide whether you will focus on local, regional, or global markets, and determine the time period for analysis. Identify reliable sources of data, such as industry reports, trade publications, market surveys, and supplier databases.

In my opinion : Best practices for market research and benchmarking in purchasing categories should be: 1. **Define Objectives**: Clearly identify goals and scope. 2. **Gather Data**: Use diverse sources like industry reports, supplier information, and market trends. 3. **Analyze Competitors**: Study competitor strategies and performance. 4. **Engage Stakeholders**: Involve relevant internal teams for insights. 5. **Use Technology**: Leverage analytics tools and software. 6. **Monitor Trends**: Stay updated with market changes and innovations. 7. **Benchmark Metrics**: Compare key performance indicators against industry standards. 8. **Regular Reviews**: Continuously reassess and update benchmarks and strategies.

Market research tools : SWOT Analysis: To evaluate internal strengths and weaknesses, along with external opportunities and threats. Components: Identify category advantages (Strengths), limitations (Weaknesses), growth prospects (Opportunities), and external risks (Threats). Porter's Five Forces Analysis: To assess industry competitiveness by examining supplier/buyer power, competitive rivalry, threat of substitution, and new entry possibilities. PESTLE Analysis: Analyze macro-environmental factors influencing the category - Political, Economic, Social, Technological, Legal, and Environmental.

Compare your findings with historical data or industry trends to validate their relevance and accuracy. Analyzing past performance can help identify patterns, trends, and anomalies that validate your current findings.

establishing a feedback loop for ongoing monitoring and adjustment based on market dynamics and changing business needs is essential for continuous improvement in category management and sourcing strategies.

Furthermore, conducting thorough research and benchmarking enables procurement teams to identify potential disruptions or vulnerabilities in the supply chain, allowing them to develop contingency plans and mitigate risks effectively.

Your network is by far your biggest and most valuable asset. If you are not reaching out to your colleagues at other companies, you are missing the boat. Additionally, if you are looking for a good/service tangential to that provided by an existing supplier ASK THAT SUPPLIER for recommendations! They will not tell you about a vendor who cant deliver as it would impact their performance.

Conducting effective market research and benchmarking in purchasing requires a systematic approach. Start by defining clear objectives, such as identifying market trends, potential suppliers, or comparing prices and quality standards. Gather data from various sources, including industry reports, supplier performance data, competitor analysis, and market surveys, using both primary and secondary research methods. Engage with suppliers to collect firsthand insights and build strong relationships. Leverage technology platforms for data analytics and visualization to gain deeper insights and make informed decisions. An example is the "Catena-X" platform by BMW, Daimler, and Volkswagen, enhancing transparency and collaboration.

Continuously monitor market trends, supplier performance, and competitive dynamics even after the initial research phase. Regularly review and update market research findings to adapt to changing market conditions and maintain a competitive edge in procurement decision-making