Outcome-Focused Market Intelligence: Extracting Better Value and Effectiveness From Strategic Sourcing

Abstract

A relatively new approach to government procurement strategic sourcing offers substantially increased efficiency and effectiveness to those agencies that seek to implement its tenets. Sound market intelligence is the foundation of effective strategic sourcing. The government's current approach to market intelligence is ad hoc, inconsistent, and redundant because information is rarely shared between buying activities. Additionally, market research is treated as static, sought only to support pre-award acquisition decisions. This article offers a new paradigm for market research/market intelligence and demonstrates ways in which continuous market research/market intelligence will drive the government to achieve desired strategic sourcing outcomes. This article examines many facets of strategic sourcing, including goal setting, strategic cost management, and volume consolidation strategies. The article concludes with recommendations for enhancing the collection of, dissemination of, and response to market research/intelligence.