What is the primary focus of demand analysis in relation to vendors?

Demand analysis primarily focuses on understanding how much a company spends, which is critical for making informed decisions regarding procurement and vendor relationships. By analyzing demand, organizations can gain insights into their purchasing patterns, identify trends in spending, and assess the overall need for various materials or products. This analysis helps in forecasting future demands and aligning inventory levels with expected usage, ultimately leading to more strategic purchasing decisions.

Understanding spending habits allows companies to negotiate better terms with vendors, streamline their purchasing processes, and potentially eliminate unnecessary expenditures. It serves as a foundational aspect of vendor management, as knowing the company's spending patterns can lead to more effective communication and negotiations with current and potential vendors. This information can also influence decisions related to vendor selection and relationship maintenance.

The other options, while relevant to vendor management in various capacities, do not capture the essence of demand analysis as clearly as the focus on analyzing spending does. For instance, establishing pricing agreements, evaluating international strategies, and building rapport are important aspects, but they stem from a well-informed perspective on demand analysis rather than forming its primary focus.