Suppliers: Case 3. Formulating a Strategy for Product Selection for Supply through Unified Commodity, Work, and Service Classification (UCWSC) Procurement Data Analysis
Before initiating the actual implementation of our task, we need to compile a list of questions we aim to answer:
- What is the public procurement market landscape for the product, work, or service of interest to us?
- Who are the key suppliers and main procuring entities in this market?
- What procurement methods are prevalent in this particular market?
- What are the competition indicators in the market you’re interested in?
- Is the commodity, work, or service you’re interested in planned for procurement and in what volumes?
In previous case studies, we examined the process of analyzing competitors’ activities and procuring entities potentially of interest to you.
In the current case study, we’ll approach the same question, but our analysis will start with the selection of UCWSC (Unified Commodity, Work, and Service Classification). To obtain primary information on the UCWSC, we open the “UCWSC Profile” worksheet under the “Analytics” category. The specific product, work, or service is selected via the “Commodity Names” field.
Market volume metrics may include data on the number of lots and the planned sum exclusive of VAT.
The units of measurement used are of significant importance; in the “Feature Ratings” chart, you can rank the planned sum both by units of measurement and UCWSC features to identify the most frequently used units.
You can review data on key suppliers, procuring entities, their market shares concerning the particular UCWSC, and commonly used procurement methods.
It should be noted that data on procuring entities and suppliers is limited to the top 20 names in each category. You can review these lists under lists of procuring entities and suppliers.
Additional interest to us is information on the regional distribution of procuring entities since logistics considerations will significantly impact pricing.
You can rank data on procuring entities by region in the “Procuring Entities Geography” worksheet.
You can access data on potential demand through the “Planned Items Table.” Information about procurement announcements, lots, and customer price proposals can be obtained through the “Lot Table.” The process of working with both tables is consistent with those of earlier case studies.
Additional value for you may come from using the Lot Table to identify various titles and announcements under the specific Unified Commodity, Work, and Service Classification (UCWSC).
Within the scope of this analysis, we recommend paying attention to the contents of the “Competition” worksheet. Here, you can gain an understanding of the level of competition within a specific niche. For instance, the higher the average number of suppliers per procuring entity, the greater the competition.
By correlating this with the indicator “share of lots with a single proposal,” you can assess the level of potential competition you will face in the market.
In the context of the current case study, we have answered the key questions, explored various commodity markets, and considered additional avenues for analysis.