Opportunity analysis

An Opportunity Analysis is an initiative that attempts to identify ways to capture value through sourcing. These opportunities are identified after analysing organisational requirements, supplier spend, current sourcing processes and other data sources. An Opportunity Analysis initiative can differ in the number of categories in scope and type of outcome.

Types of Opportunity Analyses
1. Category Opportunity Analysis

• One category in scope of Opportunity Analysis.
• After the Opportunity Analysis initiative, a new team or sub-team is typically formed to capture the identified opportunities.

These could include:

• Quick hits;
• Process improvements;
• Cross-divisional savings opportunities; and
• Other actions specific to business dynamics.

2. Divisional / Department / Product / Geographic Opportunity Analysis

• Many categories in scope of Opportunity Analysis.
• At the end of the initiative a high-level recommendation for each category may include the following:
• Form a new team around a specific category or spend area;
• Join an existing team;
• Use an existing, preferred supplier program / standard agreement; and
• Other actions specific to business dynamics.