Gathering and analyzing relevant information from the market are important in helping companies and supply chain individuals to make better and more accurate decisions. Market intelligence is aligned with supply chain strategy on the first of 3 Vs, i.e. increased visibility throughout the supply chains, and this could lead to the second V of increased velocity in collective supply chain processes.
Relevant information has to be timely, accurate, easily accessible and high in quality. There are several uses of the market intelligence information:
Benchmarks and best practices: to identify industry standards and to position us in the "competition" for certain areas like order cycle time, fulfillment rate, inventory turn, and supply chain cost. The information resulted from market intelligent can also be used to that the supply chain processes are as good as or better than average level of those in the industry.
Sourcing: information such as comparative pricing, products supply availability, trend or change of demand and utilization rate in the industry could help to strategically think about how, when or from where we source the products to satisfy customers' needs. Market intelligence can also be used in leveraging supplier relationship and forming strategic supply agreements with key suppliers.
Demand planning: market intelligence can also play other roles in enhancing supply chain efficiency and effectiveness by better forecasting of demand, cost drivers identification, new superior products identification, finding potential suppliers where it ultimately delivers improved quality and service to the customers and total ownership cost reduction of the supply chain.
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