Transcript Analysis - Cengage Learning EMEA

Planning
6. Purchasing Intelligence and
market research
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Program
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Why purchasing market research?
Purchasing market research: definition
How to structure purchasing market research
Subjects of purchasing market research
Purchasing market research and information technology
Organizing for purchasing market research
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Why purchasing market research?
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Continuing technological developments: Should a company
develop new technologies itself or buy them?
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Supply market dynamics: International supply and demand are
constantly changing due to changes in business cycles, mergers and
acquisitions etc..
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Changes in European economies: Changes in international
labour costs and productivity may lead to different sourcing patterns by
large companies.
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Monetary developments: High inflation in some countries, large
governmental budget deficits, rapidly changing currency exchange rates
may require action from buyers
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Purchasing market research: definition
Fearon (1976) defines purchasing market research as:
Systematic gathering, classifying and analyzing data
considering all relevant factors that influence the
procurement of goods and services for the purpose of
meeting present and future company requirements in such
a way that they contribute to an optimal return.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
How to structure market research
1.
Determine objectives
What exactly is the problem to be solved? What information is
desired? How accurate does the information have to be?
2.
Cost-benefits analysis
What will be the costs of the research? How many hours are
required?
3.
Feasibility study
What information is already available? The next step is only taken
when the required information is unavailable in the form of
publications or statistics.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
How to structure market research
4.
Design of research plan
Specific action is sometimes needed to obtain information, e.g. auditing a
supplier. A detailed project plan is needed to prepare for research.
5.
Execution of research activities
In this stage it is important to follow the project plan prepared earlier.
6.
Preparing research report and evaluation
When the research is finished a report has to be prepared- this has to
contain the assignment, as well as the obtained results.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
How to structure market research
Evaluation
Determine objectives
Prepare research report
Cost-benefit analysis
A stepwise approach
Data analysis
Feasibility study
Data collection
What?
Desk research
Execution of
research activities
Design of research activities
Where?
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Field research
How to structure market research
Desk research versus Field research:
Desk research: the gathering, analysis and interpretation of data
that serve the research assignment, but which have already been
gathered by others (e.g. internet search).
Field research: the gathering, analysis and interpretation of
information that cannot be obtained by desk research. It tries to track
down new information: visits to industrial exhibitions and suppliers are
examples of field research methods
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
How to structure market research
Some of the most important e-marketplaces listed per industry
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Automotive
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Building and construction
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www.aeroxchange.com
www.b2b-aero.com
www.exostar.com
www.bravobuild.it
www.edilportale.it
www.citadon.com
Chemicals
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Healthcare and Pharmaceutical
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Aviation
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www.covisint.com
www.supplyon.com
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Retail and consumer goods
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www.gnx.com
www.wwre.com
Transportation and Logistics
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www.ghx.com
www.transcore.com
Energy and fuels
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www.eutilia.com
 www.traderanger.com
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www.elemica.com
www.chemconnect.com
This list was taken from e-market services (2003).
The e-market places may have undergone
Significant changes since then.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Food and beverage
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www.transcore.com
 www.cpgmarket.com
Subjects of purchasing market research
Fearon (1976) distinguishes 3 areas of investigation:
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Materials, goods and services: aims at realizing savings or at
reducing purchasing related costs
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Suppliers: is concerned with obtaining specific information with
regard to the supplier’s financial performance, capabilities,
management, processes,systems.
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Systems and procedures: a good purchasing information system is
of great importance. ICT offers great possibilities but it has to be
guided on the basis of buyer’s needs.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Subjects of purchasing market research
Another distinction:
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Macro-economic research: refers to the general economic
environment and focuses on factors that can influence the future
balance between supply and demand.
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Meso-economic research: focuses on specific sectors of industry.
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Micro-economic research: focuses on assessing strengths and
weaknesses of individual suppliers and products.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Three areas
of purchasing market
research.
Macro-economic research
Meso-economic research
Micro-economic
research
Europe
BASF
Ford
Steel
Chrysle
Shell
BayerGMr
Automotive
e.g. Chemical
industry
industry
Chemical
industry
US
US
Japan
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
adapted from Faes
and de Weerd, 1983
Main parameters to be addressed in purchasing market research
Level
Parameter
Macroeconomics
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Business cycle and
economic growth
 Development of
industrial production
 Average utilization
rate in industry
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Mesoeconomics
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Supply-and-demand
analysis
 Utilization rate
 Order situation and
sales
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Microeconomics
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Financial situation
organizational
structure
 Quality of delivered
goods
 Delivery performance
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© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Price development
 Interest rate
 Development of wages
 Productivity
development
 Political climate
Inventories
 Market structure
Delivery lead time
 General conditions
 Service quality
 Ownership and shares
 Cost-price structure
 Price level
Purchasing market research and information
technology
Companies are discovering the many ways in which ICT may support
their purchasing operations and strategies. Some examples:
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Company’s like Grasso, manufacturer of industrial cooling and heating
equipment and part of a large German group with business units around the
world, have installed a purchasing intranet within three months enabling
exchange of product, supplier and contract information
Data suppliers like Yellow Pages, ABC have now available through their
websites vast supplier bases covering supplier addresses in all major EC
countries enabling buyers to conduct market surveys in short time.
Sony uses its Purchasing website to attract new suppliers for certain
commodities.
Companies like FedEx, DHL, UPS provide linkages through the Internet
which enable companies to keep track of their deliveries.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)
Introduction of purchasing market research
Fearon 1976 mentions 3 methods of establishing purchasing market
research:
1.
Create a staff department
Locate all purchasing market research activities in a separate department
or section. Advantage: research can be allocated to specialist researcher.
2.
Market research conducted by the buyer
Advantages: research only done on issues which buyers consider
relevant and this enlarges their involvement
Disadvantages: buyer’s lack of time to do the research systematically and
the lack of knowledge of market research techniques.
3.
Work with research teams
Compromise solution: ad hoc research teams consisting of buyers and
researchers.
© Cengage Learning – Purchasing & Supply Chain Management 4 ed (1-84480-024-5)