The third step is developing a supplier analysis for both incumbent and potential substitute suppliers. This analysis assists in examining the skills and abilities of a supplier. In the meanwhile, data collected from incumbent suppliers is used for verifying spend information that suppliers have from their sales systems.
The survey team considers the above-mentioned areas for gathering information. The areas are as follows:
The analysis is done to examine the potential and skills of the market to satisfy the customer demands. This analysis helps in the examination done at the initial stage to find out if the proposed project is feasible and can be delivered by the identified supply base.
This analysis also supplies an initial caution of the customer demands to the market and enables suppliers to think about how they would react to and fulfil the demand. Here the motto is to motivate the appropriate suppliers with the right structural layout to respond to the demands.