Certified Materials and Resource Professional Practice

Question: 1 / 400

What is the first step in conducting a supplier market analysis?

Category risk level analysis

Demand analysis

Supplier market analysis

The first step in conducting a supplier market analysis is to establish a foundation for understanding the dynamics of the market. This involves examining the supplier market as a whole to gain insights into the number of suppliers, their capabilities, market trends, competition, and economic factors that may affect sourcing decisions. By conducting a supplier market analysis at this initial stage, organizations can identify potential suppliers, understand their market positioning, and assess the overall availability of materials or services needed.

This foundational step is critical because it informs subsequent analyses like demand analysis and risk level assessments. Understanding the broader supplier landscape helps ensure that more detailed analyses can be aligned with market realities and strategic sourcing objectives, effectively guiding decision-making processes in procurement.

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