ProcurementIQ is dedicated to providing the highest quality data and intelligence so you can make the best and most efficient decisions. This brief video will go over our new approach to our Buyer Power Score.
We have updated the Buyer Power Score section to provide more clarity about where the balance of power sits within a category.
Buyer Power is now measured on a scale from negative 5 to positive 5 and is tracked over the past 3 years.
By looking at how buyer power has changed over time, you can assess how your position in the market today might compare to the last time that you went out to bid for this category.
We’re also adding a forward-looking component to the buyer power score to help you plan for future purchases, as well as a “buy now vs. buy later” indicator.
For example, we have marked Janitorial Services as “Buy Later.” This tells you that market dynamics are expected to improve in the next year, and that you might do better to extend a current contract in the short term instead of going out to RFP. Even if that’s not an option, this score shows you right away that there are factors working against you today that you should be fully aware of before negotiating a long-term contract.
We now also include the breakdown of how we calculated the score. In this case, you can see how much of a negative impact the Recent Developments have had on buyer power in this market.
The hover functionality for each component gives insight into why a score has changed, providing justification elements to your strategies.
With this more robust Buyer Power Score, you can use your spend analytics with our data to develop strategies for the upcoming year and identify unforeseen opportunities for buying now.