What should be included in a supplier market analysis?

In a supplier market analysis, incorporating suppliers' revenue and Earnings Before Interest, Taxes, and Amortization (EBITA) provides valuable insight into the financial stability and overall health of suppliers. This information helps organizations to evaluate whether a supplier is capable of fulfilling contracts reliably and sustainably, which is critical for maintaining a steady supply chain. Strong financial performance indicated by revenue and EBITA can suggest that a supplier has the necessary resources to invest in operations, quality control, and technology, which can directly impact the level of service and product quality provided.

While historical supplier performance, current suppliers, and stock prices may also contribute valuable information to a broader supplier assessment, understanding the financial metrics specifically allows for better predictions of potential risks and long-term viability. Hence, focusing on financial indicators is a key aspect of comprehensive supplier market analysis.