What are the emerging trends and best practices in supplier market research?

1 Digitalization and data analytics

One of the most significant trends in supplier market research is the increasing use of digital tools and data analytics to collect, process, and analyze information about suppliers. Digital platforms, such as online marketplaces, databases, and networks, can help you access a wider range of suppliers, compare their offerings, and verify their credentials. Data analytics, such as artificial intelligence, machine learning, and big data, can help you generate insights, identify patterns, and predict trends from the large and complex data sets available. By leveraging digitalization and data analytics, you can enhance your supplier market research efficiency, accuracy, and agility.

2 Sustainability and social responsibility

Another important trend in supplier market research is the growing demand for sustainability and social responsibility from both customers and regulators. Customers are increasingly conscious of the environmental and social impact of their purchases and expect businesses to source from suppliers that adhere to ethical and green standards. Regulators are also tightening the rules and regulations on environmental, social, and governance (ESG) issues, such as carbon emissions, human rights, and anti-corruption. Therefore, you need to conduct supplier market research that incorporates ESG criteria and evaluates the performance and reputation of suppliers on these aspects.

3 Innovation and collaboration

A third key trend in supplier market research is the rising need for innovation and collaboration to cope with the fast-changing and uncertain market conditions. Innovation is essential for creating value, differentiation, and competitive advantage in the market. Collaboration is vital for sharing knowledge, resources, and risks with other stakeholders. Therefore, you need to conduct supplier market research that identifies and selects suppliers that can offer innovative solutions, technologies, and processes that align with your business goals and needs. You also need to foster collaborative relationships with your suppliers that enable mutual learning, trust, and co-creation.

4 Best practices in supplier market research

To conduct effective and efficient supplier market research, you need to follow some best practices that can help you optimize your process and outcomes. Before beginning, you should define your objectives and criteria for selecting suppliers, such as specific requirements, expectations, and preferences. Then, it is important to conduct a comprehensive and systematic search of online platforms, such as Google or Alibaba, as well as offline sources like trade shows and industry associations. After identifying a list of potential suppliers, you can use various evaluation tools to assess their capabilities and performance. Finally, negotiate and contract with your preferred suppliers to finalize the terms of your business relationship. By following the emerging trends and best practices in supplier market research, you can improve your sourcing strategy, performance, and results.