1. Kaushik Rana July, 2010 Approach to Analyzing a Supply Market and Adding Value to Customers

3. Dynamics of Supply Market

4. PESTEL Analysis of Supply Market

5. Analysis using Porter’s 5 Forces

6. Value Realization through Supply Market Analysis

8. Determine market size, quantities, international nature

9. Number of suppliers per category, location of suppliers

10. Current and future capabilities of supplier - cost, price, technology, value added and dynamics

12. Life cycles and how they are changing

13. Capacity change, history and future

14. Economies of demand in the supply market, how market is changing and develop potential strategies

15. External cost drivers in the supply market

16. New segments being created, or old ones dying

18. Analysis using Porter’s 5 Forces New Entrant What are the barriers to entry of new suppliers? Can they achieve economies of scale? Supply Market Rivalry Suppliers Buyers Who are the suppliers? What is their size? Breadth of line? Niche focus? Financial strength? Relationship with the company? What are the supplier success factors? Who are the major buyers? By niche and product? For what purpose do they use the product? Relationship with the company? What is the basis of competition – price, quality, speed, value ? • Are suppliers willing to act competitively? What creates that behaviour? Substitutes What substitutes and allied products are there? What is available that the company don’t use and corresponding switching cost?

20. Identify global sourcing opportunities – low cost supplier, world class operations, achieve scale

21. Benchmark supplier information for increased competition and enable re-negotiation with suppliers

22. Help make vs buy assessment

23. Improve supplier relationship taking into account

24. supply base is global or local,

25. category is direct or indirect,

26. supplier is strategic or tactical

28. Thank You