Which is the first step in a supply market analysis?

The first step in a supply market analysis is supplier market analysis. This step is critical as it involves understanding the overall landscape of the market where suppliers operate. By examining market trends, competitive dynamics, potential suppliers' strengths and weaknesses, and their willingness to engage, an organization gains a comprehensive view of how the supply market functions. This foundational knowledge sets the stage for subsequent actions, such as demand analysis, supplier interviews, and risk assessments. Each of these subsequent steps relies fundamentally on the insights gained during the initial market analysis, which informs strategies for sourcing and supplier relationships.