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Market Intelligence for Supply
           Chain Management

                Webinar presentation
                        June 4, 2009
Webinar Content Outline


•    Corporate Supply Chain Management functions identified


•    The missing piece of the puzzle – The need for Market Intelligence


•    Market Intelligence solutions defined


•    Conclusions
Corporate Supply Chain Management




                         www.globalintelligence.com
Corporate Supply Chain Management




Connecting the worlds of internal customers, suppliers of goods and services, and the
SCM world of project management, ethical decision-making, strategy, and cost savings

                                                            www.globalintelligence.com – page 4
Purchasing
The Purchasing Process (centralized procurement)
1.  Identifying a need
2.  Creating a requisition which records budget owner & expenditure
3.  Buyer may rely on Approved Vendor Listing (AVL) to know the
    appropriate vendor and price for the PO, or
4.  Buyer conducts a Request for Quotation (RFQ) from the most
    qualified suppliers in the buyer’s network
5.  Buyer transforms requisition into a Purchase Order (PO)
6.  Responsible to coordinate delivery and customs clearance
7.  Responsible for ensuring the supplier’s invoice matches the
    purchase order, and arranging with accounts payable for payment
8.  Long term supplier relationship management
                                                    www.globalintelligence.com – page 5
Procurement organization
Procurement Design Process:
• Business Process Mapping
• Benchmarking
• Best practices and alternatives
• Organize teams servicing lines of business or centralized resources
  catering to internal customers’ needs
• Goals and metrics:
    •  Maximized savings targets
    •  Maximized percentage of spend using suppliers from approved vendor listings
    •  Maximized volume of Requisition-to-PO transactions completed in less than 1 day
    •  Minimized volume of PO-invoice mismatches

• Maintenance of the Approved Vendor Listing
• Maintaining contract management process: negotiate contracts with
  suppliers for best pricing and other terms
                                                                              www.globalintelligence.com – page 6
Logistics and Inventory Management
Logistics is the management of inventory after purchase or production


• Strategic decision-making regarding the approach to inventory
  deployment
• Distribution center locations and operations
• Inventory forecasting (purchasing needs assessment)
• Spare parts management
• Operations management




                                                   www.globalintelligence.com – page 7
Strategic Sourcing
Strategic Sourcing is problem solving and needs fulfillment using the
best combination of methods and internal and external sources available
• Needs assessment
   !  Business Process Mapping
   !  Resource analysis
   !  Synergy analysis
   !  Total Quality Management

• Evaluation of supply markets
• Management of the bid process (RFP, RFQ, RFI)
• Achieve best costs, quality and schedule
• Minimizing risk




                                                   www.globalintelligence.com – page 8
The missing piece of the puzzle –
Typical SCM experiences

“I discovered the need for targeted research and analysis, but
did not have the required skills or resources to execute”




                                             www.globalintelligence.com
Purchasing – Logistics - Sourcing



Save money
          Reduce risks




                                    www.globalintelligence.com – page 10
Market Intelligence – the missing piece of the
puzzle
Purchasing
Research Skills required          Access to information
•  Finding potential suppliers    •  Google
•  Complicated relationships      •  Suppliers who tell you who their
   between suppliers and the         competition is
   competition                    •  Buyers who have been in the
•  Understanding market pricing      business for many years
                                  •  Collecting many competitive
                                     quotes
 “If I had access to Market
                                  •  Gossip
 Intelligence services I would
 have been even better at
 saving money.”

                                              www.globalintelligence.com – page 11
Case Example:
Market Intelligence in Purchasing
•  Global pharmaceutical contract
   research organization (CRO)
•  Buyer was required to issue a
   request for quotation (RFQ) for
   dry ice
    !  Dry ice is used to keep bio samples cold during
       transit to labs

•  The search for potential
   suppliers started with Google,                        “A partner screening and evaluation
   and moved onto asking the                             project would have offered the CRO
   incumbent supplier who their                          a complete list of the dry ice
   competitors are                                       suppliers meeting the company’s
•  The firm did not include all                          requirements, and a ranking of the
   pharma-grade dry ice suppliers                        firms most aligned with the
   in the RFQ                                            company’s needs.”

                                                                      www.globalintelligence.com – page 12
Market Intelligence – the missing piece of the
puzzle
Procurement Organization
Research Skills required              Access to information
•  Benchmarking                       •  Google
•  Best-in-class comparisons          •  Personal networks
•  Tools available for ERP &          •  Business school text books
   purchasing management              •  Suppliers



  “Market Intelligence can tell you whether it is better to focus on
  maximizing savings or maximizing internal customer service – more
  importantly, Market Intelligence can tell you how.”


                                                  www.globalintelligence.com
Market Intelligence – the missing piece of the
puzzle
Research requirements                 Access to information
•  Finding DC locations               •  Google
•  What are the hidden costs of       •  Cost – benefit analysis
   opening a DC in Europe? In Asia?   •  Word of mouth
   In the Americas?                   •  Industry publications and
•  What are the economic factors         newspapers
   impacting inventory forecasts?     •  Logistics & Inventory


    “If I had a qualitative country profile I would have known
    not to open a distribution center in a country with so
    much red tape .”


                                                   www.globalintelligence.com – page 14
Case Example: Market Intelligence in Logistics
                                       •  Global aerospace manufacturer
                                       •  Spare parts distribution center
                                          location decision was made based on
                                          cost – benefit analysis
                                            !  South Asian location was an inexpensive
                                               choice, close to customers in Eastern
                                               Europe, the Middle East and all of Asia
                                       •  After it started up the firm realized
                                          that local government red tape was
                                          preventing the movement, sale, and
                                          removal of spare parts from the depot
                                       •  The firm was stuck paying for the
                                          parts, the warehouse, and the labor

 “A qualitative country profile combined with the cost – benefit
 analysis would have raised a red flag regarding the political powers
 of the host government over international business.”
                                                         www.globalintelligence.com – page 15
Market Intelligence – the missing piece of the
puzzle
Strategic Sourcing
Research requirements                   Access to information
•  Understanding the alternative        •  Suppliers who tell you who their
   supply network                          competition is
•  What turn-key solutions are          •  Buyers who have been in the
   available for a firm changing its       business for many years
   overall strategic direction?         •  Collecting many competitive
•  What is the forecast for the            quotes
   industry?
                       “If I had known that a single supplier could handle
                          all of the firm’s production inputs, I would have
                              saved the company a lot of time and effort.”

                                                      www.globalintelligence.com – page 16
Market Intelligence – the missing piece of the
puzzle
•  Working for corporate supply chain management, internal customers
   often want everything yesterday (get the project done really fast!)
•  SCM managers are also involved in:
    !    Managing vendor relationships
    !    Negotiating contract terms and conditions
    !    Cutting Purchase Orders (POs)
    !    Balancing payables
    !    Forecasting inventories
    !    Performing needs assessments

•  …and often do not have time for this research and analysis




                                                     www.globalintelligence.com – page 17
Market Intelligence – the missing piece of the
puzzle
•  The Market Intelligence service offerings can enable SCM professionals
   to have better information, and therefore offer quicker and more
   effective strategic decision-making

•  Market Intelligence professionals are trained to conduct research,
   perform primary research interviews, offer objective analyses, and
   manage projects with strict restrictions




                                                     www.globalintelligence.com – page 18
Market Intelligence Solutions




                            www.globalintelligence.com
Solutions for the purchasing process

• Company profiling                       • Supplier screening & evaluation
   !  As the simplest form of supplier       !  When looking for new or alternative
      intelligence, a company profile           suppliers, a thorough methodology can
      provides basic information about          lead to significant savings and value in
      suppliers                                 the partner relationship


• Supplier deep dive                      • Rapid response background checks
   !  In order to properly evaluate the      !  As a different type of research process,
      reliability, strengths and                a pre-defined type of background check
      weaknesses, and capacity of a             can be performed on new potential
      supplier, a deep dive study,              suppliers on short notice if access to a
      utilizing various types of                global network of information sources is
      information sources and more              available
      rigorous analysis methods, can
      reveal valuable insight

                                                            www.globalintelligence.com – page 20
Supplier screening & evaluation

•  A specialist in market intelligence
   is in a good position to                       RELIABILITY         Long-term strategy           CULTURE
                                                    Responsiveness
                                                                                           Company values
    !  Find information about potential
       suppliers                                                                                 Management
                                                     Volatility
                                                                                                 experience
    !  Evaluate relative strengths,
       weaknesses of suppliers
                                                  Inventory                                         Technical staff
    !  Evaluate the best fit using both hard
       and soft criteria
                                                     Logistics                                  Backup facilities

•  The evaluation process includes
                                                         Error handling                   On-line capacity
    !  Defining an ideal profile for a supplier
                                                                          Down-time
    !  Comparing potential partners against       QUALITY                                         CAPACITY

       the ideal profile
    !  Comparing potential partners against                               Ideal partner

       each other                                                         Target company



                                                                   www.globalintelligence.com – page 21
Rapid response background checks
•  In cases where suppliers change frequently and new unknown potential
   suppliers emerge, a company may need to make a quick decision on
   choosing a supplier
•  Such a decision can lead to the discovery of a good new supplier, or
   alternatively to a disastrous choice
•  The need may thus be for a rapid background check on unknown
   suppliers
•  The research process in a nutshell:
    !  Define a template for the information needed about a new supplier – this information is
       usually very specific to the supply-chain or the process at hand (track record or references,
       capacity, bottlenecks, weak spots)
    !  Make a framework agreement with a market intelligence company that has global access to
       this information
    !  Whenever the need arises to do a background check on a new company, the market
       intelligence company already knows exactly what to look for, why the information is
       needed, and can find the information for any company in any part of the world – the findings
       can be delivered very quickly

                                                                      www.globalintelligence.com – page 22
Solutions for strategic sourcing
• Market sizing & forecasting
   !  Market sizing & forecasting can help strategic sourcing in two ways:
       •  By forecasting the demand for end-products, and therefore the need for inputs
       •  By forecasting the market development of inputs

   !  Estimating and forecasting the market size for end-products is usually part of a
      strategy or business planning process, or the process related to launching a new
      product
   !  Efficient planning of supply-chain needs benefits from the foresight of the
      development of the market for the end-product
   !  Forecasting market developments –and price developments in particular – for
      inputs enables better purchasing decisions sourcing
• Market monitoring
   !  An important part of strategic sourcing is being aware of changes in the market
      environment
   !  A market monitoring solution can provide supply-chain managers with timely
      insight about the markets for inputs, developments in technologies,
      macroeconomic developments, suppliers, competitors, etc.
                                                                                          – page 23
Market sizing & forecasting

•  In order to arrive at a good estimate, triangulation and
   validation of results is required
•  A proper market sizing study therefore uses a wide
   variety of data sources and estimation methods

              Top-down model                                                 Bottom-up model

                                                                                     Total market size
Indicator 1   Indicator 2        Indicator 3      Indicator 4


                                                                     Segment total                       Segment total
      Segment total                       Segment total


                                                                Supplier 1   Supplier 2         Supplier 3       Supplier 4
                      Total market size


                                                                                       www.globalintelligence.com – page 24
Area
of
Expertise
           Rapid
Response
Research
            Strategic
Analysis
            Continuous
Monitoring


                                Company
Profiling
        Partner
Screening
&
Evaluation
         Supplier
Monitoring


          Purchasing

                                                                 Supplier
Deep
Dive

                                                                Value
Chain
Analysis
          Competitor
Benchmarking

        Procurement


                                                                  Market
Profiling

             Regulatory
Monitoring


                                                               Country
Risk
Analysis
          Competitor
Benchmarking




           Logistics
                                            Scenario
Analysis

                                                              Macroeconomic
Analysis



                                                                  PESTEL

Analysis

                                                            Market
Sizing
&
Forecasting
            Price
Monitoring



      Strategic
Sourcing

                                                                   Trend
Analysis
                Supplier
Monitoring


                                                                 Supplier
Deep
Dive
               Market
Monitoring

                                              Building
A
World‐Class
Market
Intelligence
Department

   Intelligence
Workshops

                                       Strategic
quantitative
and
qualitative
research
and
analysis
techniques



                                                                                        www.globalintelligence.com
Conclusions




              www.globalintelligence.com
Conclusions


Requirements:                Results:
•  Capacity                  •  Purchasing is more efficient
•  Time for research            and effective
•  Skills                    •  Procurement organization is
•  Research and analysis        best-in-class
•  Objective perspective     •  Inventory management risks are
                                minimized
•  Market Research Partner
                             •  Strategic sourcing is aware of
                                all possible suppliers, sources,
                                solutions



                                            www.globalintelligence.com
Conclusions


•  Better information enables strategic decision-making

•  SCM professionals do not always have the research and analysis training or
   the time to conduct thorough investigations

•  Bringing together the market intelligence needs of SCM professionals with
   the solutions available in this market can enable strategic decision-making
   for all levels of corporate supply chain management




                                                      www.globalintelligence.com
Thank You for Your
Attention


Download the free GIA White               Contact Us
Paper: Market Intelligence for
Supply Chain Management                   For additional information about
                                          Global Intelligence Alliance and our
                                          services, please send email to
The report has been published under the
                                          info@globalintelligence.com or log on
GIA White Paper series and is available
at www.globalintelligence.com.            to the GIA website for the contact
                                          information of the GIA company
                                          nearest to you.




                                                        www.globalintelligence.com
About GIA




            www.globalintelligence.com
GIA is a strategic market Intelligence
  and advisory group

  Global Intelligence Alliance (GIA) was formed in 1995
  when a team of market intelligence specialists,
  management consultants, industry analysts and
  technology experts came together to build a powerful
  suite of customized solutions ranging from outsourced
  market monitoring services and software, to strategic
  analysis and advisory.


  Today, we are the preferred partner for organizations
  seeking to understand, compete and grow in
  international markets. Our industry expertise and
  coverage of over 100 countries enables our customers
  to make better informed decisions worldwide.




                                                                                                                              www.globalintelligence.com
GIA Industry White Paper 2 / 2010: Native or Web Application? How best to deliver content and services to your audiences over the mobile phone
Access local knowledge in over
100 countries

GIA Group has 12 offices on 4 continents.
Together with affiliated GIA Member
companies, certified GIA Research Partners
and consultants, GIA provides access to
local knowledge in over 100 countries.

All GIA Network companies adhere to GIA’s
Research and Analysis Quality System as
well as the SCIP Code of Ethics.




                                             www.globalintelligence.com - page 32
We understand your business
With a track record of supporting thousands of clients       Industry Practices
around the world, we bring you practical expertise in        Automotive
                                                             Chemicals
your markets, as well as knowledge from our practices        Construction & Property Development
covering 11 industries and all the key business functions.   Consumer & Retail
                                                             Energy, Resources & Environment
                                                             Financial Services
                                                             Private Equity
                                                             Logistics & Transportation
                                                             Manufacturing & Industrial
                                                             Pharmaceuticals & Healthcare
                                                             Telecommunication, Technology & Media

                                                             Functional Practices
                                                             World Class Market Intelligence
                                                             MI for Strategic Planning
                                                             MI for Marketing & Sales
                                                             MI for Product & Innovation Management
                                                             MI for Supply Chain Management
                                                             M&A and Partnering




                                                                 www.globalintelligence.com
International              Global Intelligence Alliance Group                         info@globalintelligence.com
Baltic Region              Gateway Baltic                                             baltics@globalintelligence.com
Belgium                    Global Intelligence Alliance Belgium                       belgium@globalintelligence.com
Brazil                     Global Intelligence Alliance Latin America                 brazil@globalintelligence.com
Canada                     Global Intelligence Alliance Canada                        canada@globalintelligence.com
Central & Eastern Europe   EasyLink Business Services                    cee@globalintelligence.com
China                      Global Intelligence Alliance China                         china@globalintelligence.com
Finland                    Global Intelligence Alliance Finland                       finland@globalintelligence.com
France                     RV Conseil                                                 france@globalintelligence.com
Germany                    Global Intelligence Alliance Germany                       germany@globalintelligence.com
Hong Kong                  Global Intelligence Alliance Hong Kong                     hongkong@globalintelligence.com
India                      Global Intelligence Alliance India                         india@globalintelligence.com
Japan                      McRBC                                                      japan@globalintelligence.com
Netherlands                Global Intelligence Alliance Netherlands                   netherlands@globalintelligence.com
Russia                     ALT R&C.                                                   russia@globalintelligence.com
Singapore                  Global Intelligence Alliance Singapore                     singapore@globalintelligence.com
South Africa               Butterfly Effect Intelligence                              southafrica@globalintelligence.com
Tunisia                    Tunisie RV Conseil                                         tunisia@globalintelligence.com
UK                         Global Intelligence Alliance UK                            uk@globalintelligence.com
United Arab Emirates       GCC Consulting                                             uae@globalintelligence.com
USA East Coast             Global Intelligence Alliance USA East Coast                usaeast@globalintelligence.com
USA West Coast             I.S.I.S. – Integrated Strategic Information Services, Inc. usawest@globalintelligence.com




                                                                                       www.globalintelligence.com

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Market Intelligence for Supply Chain Management

  • 1. Market Intelligence for Supply Chain Management Webinar presentation June 4, 2009
  • 2. Webinar Content Outline •  Corporate Supply Chain Management functions identified •  The missing piece of the puzzle – The need for Market Intelligence •  Market Intelligence solutions defined •  Conclusions
  • 3. Corporate Supply Chain Management www.globalintelligence.com
  • 4. Corporate Supply Chain Management Connecting the worlds of internal customers, suppliers of goods and services, and the SCM world of project management, ethical decision-making, strategy, and cost savings www.globalintelligence.com – page 4
  • 5. Purchasing The Purchasing Process (centralized procurement) 1.  Identifying a need 2.  Creating a requisition which records budget owner & expenditure 3.  Buyer may rely on Approved Vendor Listing (AVL) to know the appropriate vendor and price for the PO, or 4.  Buyer conducts a Request for Quotation (RFQ) from the most qualified suppliers in the buyer’s network 5.  Buyer transforms requisition into a Purchase Order (PO) 6.  Responsible to coordinate delivery and customs clearance 7.  Responsible for ensuring the supplier’s invoice matches the purchase order, and arranging with accounts payable for payment 8.  Long term supplier relationship management www.globalintelligence.com – page 5
  • 6. Procurement organization Procurement Design Process: • Business Process Mapping • Benchmarking • Best practices and alternatives • Organize teams servicing lines of business or centralized resources catering to internal customers’ needs • Goals and metrics: •  Maximized savings targets •  Maximized percentage of spend using suppliers from approved vendor listings •  Maximized volume of Requisition-to-PO transactions completed in less than 1 day •  Minimized volume of PO-invoice mismatches • Maintenance of the Approved Vendor Listing • Maintaining contract management process: negotiate contracts with suppliers for best pricing and other terms www.globalintelligence.com – page 6
  • 7. Logistics and Inventory Management Logistics is the management of inventory after purchase or production • Strategic decision-making regarding the approach to inventory deployment • Distribution center locations and operations • Inventory forecasting (purchasing needs assessment) • Spare parts management • Operations management www.globalintelligence.com – page 7
  • 8. Strategic Sourcing Strategic Sourcing is problem solving and needs fulfillment using the best combination of methods and internal and external sources available • Needs assessment !  Business Process Mapping !  Resource analysis !  Synergy analysis !  Total Quality Management • Evaluation of supply markets • Management of the bid process (RFP, RFQ, RFI) • Achieve best costs, quality and schedule • Minimizing risk www.globalintelligence.com – page 8
  • 9. The missing piece of the puzzle – Typical SCM experiences “I discovered the need for targeted research and analysis, but did not have the required skills or resources to execute” www.globalintelligence.com
  • 10. Purchasing – Logistics - Sourcing Save money Reduce risks www.globalintelligence.com – page 10
  • 11. Market Intelligence – the missing piece of the puzzle Purchasing Research Skills required Access to information •  Finding potential suppliers •  Google •  Complicated relationships •  Suppliers who tell you who their between suppliers and the competition is competition •  Buyers who have been in the •  Understanding market pricing business for many years •  Collecting many competitive quotes “If I had access to Market •  Gossip Intelligence services I would have been even better at saving money.” www.globalintelligence.com – page 11
  • 12. Case Example: Market Intelligence in Purchasing •  Global pharmaceutical contract research organization (CRO) •  Buyer was required to issue a request for quotation (RFQ) for dry ice !  Dry ice is used to keep bio samples cold during transit to labs •  The search for potential suppliers started with Google, “A partner screening and evaluation and moved onto asking the project would have offered the CRO incumbent supplier who their a complete list of the dry ice competitors are suppliers meeting the company’s •  The firm did not include all requirements, and a ranking of the pharma-grade dry ice suppliers firms most aligned with the in the RFQ company’s needs.” www.globalintelligence.com – page 12
  • 13. Market Intelligence – the missing piece of the puzzle Procurement Organization Research Skills required Access to information •  Benchmarking •  Google •  Best-in-class comparisons •  Personal networks •  Tools available for ERP & •  Business school text books purchasing management •  Suppliers “Market Intelligence can tell you whether it is better to focus on maximizing savings or maximizing internal customer service – more importantly, Market Intelligence can tell you how.” www.globalintelligence.com
  • 14. Market Intelligence – the missing piece of the puzzle Research requirements Access to information •  Finding DC locations •  Google •  What are the hidden costs of •  Cost – benefit analysis opening a DC in Europe? In Asia? •  Word of mouth In the Americas? •  Industry publications and •  What are the economic factors newspapers impacting inventory forecasts? •  Logistics & Inventory “If I had a qualitative country profile I would have known not to open a distribution center in a country with so much red tape .” www.globalintelligence.com – page 14
  • 15. Case Example: Market Intelligence in Logistics •  Global aerospace manufacturer •  Spare parts distribution center location decision was made based on cost – benefit analysis !  South Asian location was an inexpensive choice, close to customers in Eastern Europe, the Middle East and all of Asia •  After it started up the firm realized that local government red tape was preventing the movement, sale, and removal of spare parts from the depot •  The firm was stuck paying for the parts, the warehouse, and the labor “A qualitative country profile combined with the cost – benefit analysis would have raised a red flag regarding the political powers of the host government over international business.” www.globalintelligence.com – page 15
  • 16. Market Intelligence – the missing piece of the puzzle Strategic Sourcing Research requirements Access to information •  Understanding the alternative •  Suppliers who tell you who their supply network competition is •  What turn-key solutions are •  Buyers who have been in the available for a firm changing its business for many years overall strategic direction? •  Collecting many competitive •  What is the forecast for the quotes industry? “If I had known that a single supplier could handle all of the firm’s production inputs, I would have saved the company a lot of time and effort.” www.globalintelligence.com – page 16
  • 17. Market Intelligence – the missing piece of the puzzle •  Working for corporate supply chain management, internal customers often want everything yesterday (get the project done really fast!) •  SCM managers are also involved in: !  Managing vendor relationships !  Negotiating contract terms and conditions !  Cutting Purchase Orders (POs) !  Balancing payables !  Forecasting inventories !  Performing needs assessments •  …and often do not have time for this research and analysis www.globalintelligence.com – page 17
  • 18. Market Intelligence – the missing piece of the puzzle •  The Market Intelligence service offerings can enable SCM professionals to have better information, and therefore offer quicker and more effective strategic decision-making •  Market Intelligence professionals are trained to conduct research, perform primary research interviews, offer objective analyses, and manage projects with strict restrictions www.globalintelligence.com – page 18
  • 19. Market Intelligence Solutions www.globalintelligence.com
  • 20. Solutions for the purchasing process • Company profiling • Supplier screening & evaluation !  As the simplest form of supplier !  When looking for new or alternative intelligence, a company profile suppliers, a thorough methodology can provides basic information about lead to significant savings and value in suppliers the partner relationship • Supplier deep dive • Rapid response background checks !  In order to properly evaluate the !  As a different type of research process, reliability, strengths and a pre-defined type of background check weaknesses, and capacity of a can be performed on new potential supplier, a deep dive study, suppliers on short notice if access to a utilizing various types of global network of information sources is information sources and more available rigorous analysis methods, can reveal valuable insight www.globalintelligence.com – page 20
  • 21. Supplier screening & evaluation •  A specialist in market intelligence is in a good position to RELIABILITY Long-term strategy CULTURE Responsiveness Company values !  Find information about potential suppliers Management Volatility experience !  Evaluate relative strengths, weaknesses of suppliers Inventory Technical staff !  Evaluate the best fit using both hard and soft criteria Logistics Backup facilities •  The evaluation process includes Error handling On-line capacity !  Defining an ideal profile for a supplier Down-time !  Comparing potential partners against QUALITY CAPACITY the ideal profile !  Comparing potential partners against Ideal partner each other Target company www.globalintelligence.com – page 21
  • 22. Rapid response background checks •  In cases where suppliers change frequently and new unknown potential suppliers emerge, a company may need to make a quick decision on choosing a supplier •  Such a decision can lead to the discovery of a good new supplier, or alternatively to a disastrous choice •  The need may thus be for a rapid background check on unknown suppliers •  The research process in a nutshell: !  Define a template for the information needed about a new supplier – this information is usually very specific to the supply-chain or the process at hand (track record or references, capacity, bottlenecks, weak spots) !  Make a framework agreement with a market intelligence company that has global access to this information !  Whenever the need arises to do a background check on a new company, the market intelligence company already knows exactly what to look for, why the information is needed, and can find the information for any company in any part of the world – the findings can be delivered very quickly www.globalintelligence.com – page 22
  • 23. Solutions for strategic sourcing • Market sizing & forecasting !  Market sizing & forecasting can help strategic sourcing in two ways: •  By forecasting the demand for end-products, and therefore the need for inputs •  By forecasting the market development of inputs !  Estimating and forecasting the market size for end-products is usually part of a strategy or business planning process, or the process related to launching a new product !  Efficient planning of supply-chain needs benefits from the foresight of the development of the market for the end-product !  Forecasting market developments –and price developments in particular – for inputs enables better purchasing decisions sourcing • Market monitoring !  An important part of strategic sourcing is being aware of changes in the market environment !  A market monitoring solution can provide supply-chain managers with timely insight about the markets for inputs, developments in technologies, macroeconomic developments, suppliers, competitors, etc. – page 23
  • 24. Market sizing & forecasting •  In order to arrive at a good estimate, triangulation and validation of results is required •  A proper market sizing study therefore uses a wide variety of data sources and estimation methods Top-down model Bottom-up model Total market size Indicator 1 Indicator 2 Indicator 3 Indicator 4 Segment total Segment total Segment total Segment total Supplier 1 Supplier 2 Supplier 3 Supplier 4 Total market size www.globalintelligence.com – page 24
  • 25. Area
of
Expertise
 Rapid
Response
Research
 Strategic
Analysis
 Continuous
Monitoring
 Company
Profiling
 Partner
Screening
&
Evaluation
 Supplier
Monitoring
 Purchasing
 Supplier
Deep
Dive
 Value
Chain
Analysis
 Competitor
Benchmarking
 Procurement
 Market
Profiling

 Regulatory
Monitoring

 Country
Risk
Analysis
 Competitor
Benchmarking
 Logistics
 Scenario
Analysis
 Macroeconomic
Analysis
 PESTEL

Analysis
 Market
Sizing
&
Forecasting
 Price
Monitoring
 Strategic
Sourcing
 Trend
Analysis
 Supplier
Monitoring
 Supplier
Deep
Dive
 Market
Monitoring
 Building
A
World‐Class
Market
Intelligence
Department
 Intelligence
Workshops
 Strategic
quantitative
and
qualitative
research
and
analysis
techniques
 www.globalintelligence.com
  • 26. Conclusions www.globalintelligence.com
  • 27. Conclusions Requirements: Results: •  Capacity •  Purchasing is more efficient •  Time for research and effective •  Skills •  Procurement organization is •  Research and analysis best-in-class •  Objective perspective •  Inventory management risks are minimized •  Market Research Partner •  Strategic sourcing is aware of all possible suppliers, sources, solutions www.globalintelligence.com
  • 28. Conclusions •  Better information enables strategic decision-making •  SCM professionals do not always have the research and analysis training or the time to conduct thorough investigations •  Bringing together the market intelligence needs of SCM professionals with the solutions available in this market can enable strategic decision-making for all levels of corporate supply chain management www.globalintelligence.com
  • 29. Thank You for Your Attention Download the free GIA White Contact Us Paper: Market Intelligence for Supply Chain Management For additional information about Global Intelligence Alliance and our services, please send email to The report has been published under the info@globalintelligence.com or log on GIA White Paper series and is available at www.globalintelligence.com. to the GIA website for the contact information of the GIA company nearest to you. www.globalintelligence.com
  • 30. About GIA www.globalintelligence.com
  • 31. GIA is a strategic market Intelligence and advisory group Global Intelligence Alliance (GIA) was formed in 1995 when a team of market intelligence specialists, management consultants, industry analysts and technology experts came together to build a powerful suite of customized solutions ranging from outsourced market monitoring services and software, to strategic analysis and advisory. Today, we are the preferred partner for organizations seeking to understand, compete and grow in international markets. Our industry expertise and coverage of over 100 countries enables our customers to make better informed decisions worldwide. www.globalintelligence.com GIA Industry White Paper 2 / 2010: Native or Web Application? How best to deliver content and services to your audiences over the mobile phone
  • 32. Access local knowledge in over 100 countries GIA Group has 12 offices on 4 continents. Together with affiliated GIA Member companies, certified GIA Research Partners and consultants, GIA provides access to local knowledge in over 100 countries. All GIA Network companies adhere to GIA’s Research and Analysis Quality System as well as the SCIP Code of Ethics. www.globalintelligence.com - page 32
  • 33. We understand your business With a track record of supporting thousands of clients Industry Practices around the world, we bring you practical expertise in Automotive Chemicals your markets, as well as knowledge from our practices Construction & Property Development covering 11 industries and all the key business functions. Consumer & Retail Energy, Resources & Environment Financial Services Private Equity Logistics & Transportation Manufacturing & Industrial Pharmaceuticals & Healthcare Telecommunication, Technology & Media Functional Practices World Class Market Intelligence MI for Strategic Planning MI for Marketing & Sales MI for Product & Innovation Management MI for Supply Chain Management M&A and Partnering www.globalintelligence.com
  • 34. International Global Intelligence Alliance Group info@globalintelligence.com Baltic Region Gateway Baltic baltics@globalintelligence.com Belgium Global Intelligence Alliance Belgium belgium@globalintelligence.com Brazil Global Intelligence Alliance Latin America brazil@globalintelligence.com Canada Global Intelligence Alliance Canada canada@globalintelligence.com Central & Eastern Europe EasyLink Business Services cee@globalintelligence.com China Global Intelligence Alliance China china@globalintelligence.com Finland Global Intelligence Alliance Finland finland@globalintelligence.com France RV Conseil france@globalintelligence.com Germany Global Intelligence Alliance Germany germany@globalintelligence.com Hong Kong Global Intelligence Alliance Hong Kong hongkong@globalintelligence.com India Global Intelligence Alliance India india@globalintelligence.com Japan McRBC japan@globalintelligence.com Netherlands Global Intelligence Alliance Netherlands netherlands@globalintelligence.com Russia ALT R&C. russia@globalintelligence.com Singapore Global Intelligence Alliance Singapore singapore@globalintelligence.com South Africa Butterfly Effect Intelligence southafrica@globalintelligence.com Tunisia Tunisie RV Conseil tunisia@globalintelligence.com UK Global Intelligence Alliance UK uk@globalintelligence.com United Arab Emirates GCC Consulting uae@globalintelligence.com USA East Coast Global Intelligence Alliance USA East Coast usaeast@globalintelligence.com USA West Coast I.S.I.S. – Integrated Strategic Information Services, Inc. usawest@globalintelligence.com www.globalintelligence.com