From a buyer’s perspective a market analysis (RFI) answer some very important questions.

• How many suppliers are available?
• Who are the suppliers and what are their capabilities?
• Suppliers’ market position and status?

In the Market analysis course you can learn how to conduct the activities needed to take a long list of potential suppliers to a “short list” of selectable suppliers. The analysis is performed in step 4 of the Sourcing process.

It is recommended to preform step 3 and 4 in parallel since step 4 provide input to step 3. In step 3 you decide how to address the market (sourcing tactic), do you want to use competition or are there only a few suppliers available. In the course Get to know Kraljic and in the blog post about Kraljic matrix you can learn about using Kraljic’s Matrix when defining a sourcing tactic.

Having a baseline (from step 2), a sourcing tactic (from step 3) and a short list of selectable suppliers (from step 4) put you in a position to develop and send a RFQ.

Long List and Short List in Procurement Context

Long List

In the procurement process, a “long list” refers to an initial list of potential suppliers or vendors that meet the basic requirements and criteria for a given project or purchase. This list is typically comprehensive and includes a wide range of candidates to ensure a thorough market analysis. The purpose of the long list is to explore all available options and gather as much information as possible about potential suppliers.

Key Points about Long List:

• Broad Inclusion: Includes many suppliers to provide a wide array of choices.
• Initial Screening: Suppliers on the long list have passed the preliminary screening based on fundamental criteria such as product type, industry experience, and basic compliance with requirements.
• Data Collection: Information is gathered about each supplier’s capabilities, capacities, and preliminary pricing.
• Diverse Options: Ensures that no potential suppliers are overlooked in the early stages of procurement.

Example: If a company is looking to source office furniture, the long list might include all suppliers that manufacture office furniture, regardless of their size or specific product offerings.

Short List via RFI

A “short list” is a refined version of the long list, consisting of a smaller number of suppliers who have been evaluated more thoroughly and meet the more specific and stringent requirements of the project. This list is created after the initial long list has been vetted and analyzed, narrowing down the candidates to those who are most likely to meet the organization’s needs effectively.

Key Points about Short List:

• Selective Inclusion: Includes only those suppliers who best meet the detailed and specific requirements.
• Detailed Evaluation: Suppliers on the short list have undergone a more in-depth evaluation, including detailed analysis of their capabilities, financial stability, references, and compliance with specific project requirements.
• Focused Comparison: Facilitates a more detailed comparison and negotiation process.
• Decision-Making: Serves as the basis for the final selection and contract negotiations.

Example: From the long list of office furniture suppliers, the short list might include only those who can deliver within the required timeframe, meet the budget constraints, and have excellent past performance records in similar projects.

Tool supporting a market analysis (step 4).

One tool available to support step 4 of the sourcing process comes from the company Matchory and the tool Supplier Discovery Solution with a database that holds over 10 million supplier profiles.

Matchory is designed to streamline and enhance the market analysis and supplier identification process across various industries. By utilizing AI and ML, Matchory can identify relevant suppliers in real time, ensuring procurement professionals have access to the most suitable and competitive suppliers worldwide. This advanced platform not only saves time but also increases the accuracy and efficiency of the sourcing process.

Key Features and Benefits

1. Automated Supplier Search:
   • Matchory automates the supplier search process, reducing the manual effort involved in sourcing. This allows procurement teams to focus on strategic decision-making rather than time-consuming searches.
2. Real-Time Identification:
   • The platform uses AI to analyze vast amounts of data in real time, providing up-to-date information on suppliers. This ensures that procurement professionals always have access to the latest and most relevant supplier options.
3. Comprehensive Database:
   • Matchory’s extensive database covers suppliers from all industries, offering a broad spectrum of options. This diversity allows procurement professionals to find the best matches for their specific needs, whether they are looking for niche suppliers or large-scale manufacturers.
4. Advanced Filtering and Matching:
   • The AI algorithms employed by Matchory use advanced filtering and matching techniques to narrow down the supplier list based on specific criteria such as quality standards, certifications, and past performance. This targeted approach ensures that only the most qualified suppliers are considered.
5. Data-Driven Insights:
   • By leveraging machine learning, Matchory provides data-driven insights and recommendations. This helps procurement teams make informed decisions based on comprehensive data analysis, leading to better supplier relationships and optimized supply chains.
6. Cost and Time Efficiency:
   • Automating the sourcing process significantly reduces the time and cost associated with supplier identification and evaluation. This efficiency enables organizations to achieve faster time-to-market and gain a competitive edge.

Practical Applications

For procurement professionals, Matchory can be an invaluable tool in various scenarios:

• New Product Development: Quickly identify and vet suppliers that meet the specific requirements for new products, ensuring quality and reliability.
• Cost Reduction Initiatives: Find alternative suppliers that offer better pricing without compromising on quality, helping to achieve cost-saving goals.
• Risk Management: Access a diversified pool of suppliers to mitigate risks associated with supply chain disruptions or dependency on single suppliers.

Matchory provide the long list

The tool support long list to short list selection by providing comparison of known/unknown suppliers and products directly, a detailed market knowledge & high market permeation and independent supplier-ranking.

Matchory represents a significant advancement in the field of global sourcing. By integrating AI and machine learning, it automates and enhances the supplier search process, providing procurement professionals with real-time, accurate, and comprehensive supplier data. This not only improves efficiency and decision-making but also supports strategic procurement initiatives, ultimately contributing to a more resilient and competitive supply chain.

For more information about Matchory and to explore its features, visit their official website:  

Visit Matchory for more information.

About Learn How to Source

Learn How to Source is an online platform based in Sweden, offering a range of procurement courses accessible globally. It serves as a community where procurement experts share their knowledge through online courses, designed for various experience levels from introductory to expert. Courses are concise, about 30 minutes each, and cover different aspects of procurement, tailored for different buyer roles. The courses focus on practical knowledge, presented by seasoned professionals, and include quizzes and certificates. They can be accessed from any device, emphasizing micro learning for flexibility and efficiency.

Illustration to the blogpost “Market analysis and converting a long list to a short list” was provided by Matchory.