Market research is the key first step in the sourcing process, particularly if the product or service has not been previously procured. Knowledge about the market is a crucial step in a successful procurement process.
The purpose of the market research is to gather data on commercial products and services to determine their availability, market practices and standards, any of which might have an effect on the acquisition requirements and process.
Market research might provide information that encourages the revision of the Terms of Reference or specifications, thus reducing the risk of few offers being received during a competition.
Market research also can lead to the establishment of a roster of potential suppliers for future acquisitions.
The following tools can be used by staff to conduct market research.
- United Nations Global Market Place (UNGM)
- use of requests for Expression of Interests
- internal/external sources (User groups, market fairs, etc…)
It is important that the result of the market research is documented in the procurement registry file.