By: ProcurementIQ Staff Writer, Savannah George
Let’s face it; it’s impossible to be an expert on the numerous marketplaces in which you purchase goods and services. Everyday tasks, such as identifying suppliers and negotiating contract terms, can be labor-intensive and expensive, especially in unfamiliar markets. To overcome the dependence on lengthy and possibly biased vendor and client communications, many organizations have employed the use of more objective sources, like market intelligence, for smarter decision-making.
For example, by incorporating a category research company into its process, Santa Clara County’s Procurement Department was able to make significant improvements. With the help of this research, Santa Clara reduced its sourcing lead time by as much as 50% per project, saved weeks of research, shaved as much as seven months off their average 12-month sourcing process and, in just one deal, saved $380,000.
How do organizations like Santa Clara use market intelligence to generate such substantial results? They understand that market intelligence increases efficiency by cutting down the time you spend in four areas: