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Procurement Glossary

Supplier landscape analysis: Systematic evaluation of the procurement market

November 19, 2025

The supplier landscape analysis is a strategic tool for the systematic investigation and evaluation of the available supplier market. It enables purchasing organizations to make well-founded decisions on supplier selection, risk management and procurement strategies. Find out below what a supplier landscape analysis involves, which methods are used and how you can successfully implement them in your company.

Key Facts

  • Systematic recording and evaluation of all relevant suppliers in a procurement market
  • Basis for strategic sourcing decisions and risk assessments
  • Includes market structure, intensity of competition and supplier capacities
  • Enables identification of market opportunities and dependency risks
  • Key component of product group strategy development

Contents

Definition: Supplier landscape analysis

Supplier landscape analysis refers to the structured analysis and evaluation of the entire supplier market for a specific Category or procurement area.

Core elements of the analysis

A comprehensive supplier landscape analysis includes several key components:

  • Market structure and intensity of competition
  • Supplier capacities and competencies
  • Geographical distribution and regional characteristics
  • Technological developments and innovative strength
  • Financial stability and risk assessment

Differentiation from other analysis methods

In contrast to competitive analysis in the procurement market, supplier landscape analysis focuses on all available suppliers. It differs from portfolio analysis in Procurement due to its market-oriented approach.

Importance in strategic Procurement

The analysis forms the basis for the development of a sourcing strategy and supports product group management in its strategic orientation.

Methods and procedures

The systematic implementation of a supplier landscape analysis requires structured methods and proven procedures for data collection and evaluation.

Data collection and market research

Information is obtained via various channels and sources. Primary data is obtained through direct supplier surveys, market visits and expert interviews. Secondary data comes from industry reports, databases and public sources.

  • Online research and industry databases
  • Supplier surveys and RFI processes
  • Trade fair visits and industry events
  • Expert interviews and market analyses

Evaluation criteria and scoring models

The supplier landscape is evaluated on the basis of defined criteria and weighted scoring models. These include qualitative and quantitative factors for the objective comparison of suppliers.

Visualization and documentation

The results are presented in clear market maps, supplier maps and evaluation matrices. Structured documentation enables the analysis to be tracked and regularly updated.

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Key figures for controlling the supplier landscape analyses

The effectiveness and quality of supplier landscape analyses is measured and continuously monitored using specific key figures.

Market coverage and completeness

The market coverage rate measures the proportion of suppliers covered in the overall market. High coverage ensures representative analysis results and minimizes the risk of overlooked market opportunities.

  • Number of identified vs. estimated total suppliers
  • Market share coverage of the analyzed suppliers
  • Geographical coverage of relevant markets

Data quality and degree of up-to-dateness

Data quality indicators assess the reliability and timeliness of the information collected. The degree of up-to-dateness provides information on the period of time since the last data update.

Analysis efficiency and ROI

The efficiency of the analysis processes is measured by time spent, costs per analyzed supplier and the return on investment of the sourcing decisions made. These key figures support the continuous optimization of the sourcing pipeline.

Risks, dependencies and countermeasures

When conducting supplier landscape analyses, various risks and dependencies arise that can be minimized by taking appropriate measures.

Data quality and timeliness

Incomplete or outdated information can lead to incorrect assessments and suboptimal decisions. The quality of the analysis results depends to a large extent on the availability of up-to-date and reliable data.

  • Regular validation of data sources
  • Establishment of continuous monitoring processes
  • Establishment of redundant information channels

Market dynamics and speed of change

Rapid market changes can quickly render analysis results obsolete. New market participants, technological leaps or regulatory changes require flexible adjustments to the valuation methodology.

Resource expenditure and cost-benefit ratio

Comprehensive supplier landscape analyses require considerable human and financial resources. An unbalanced cost-benefit ratio can jeopardize the profitability of the analysis and must be optimized through efficient processes.

Supplier landscape analysis: definition & methods in Procurement

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Practical example

An automotive manufacturer conducts a supplier landscape analysis for electronic components. First, all relevant suppliers in Europe, Asia and North America are identified and evaluated according to technological expertise, capacity and quality standards. The analysis reveals that 70% of the market capacity is concentrated in Asia, while European suppliers are more innovative. Based on these findings, the company develops a dual sourcing strategy with Asian volume suppliers and European technology partners.

  1. Systematic market coverage by geographical region
  2. Evaluation according to defined criteria and weightings
  3. Derivation of strategic sourcing recommendations

Trends & developments around supplier landscape analysis

Supplier landscape analysis is subject to continuous change due to technological innovations, changing market conditions and new analysis methods.

Digitalization and AI-supported analyses

Artificial intelligence and machine learning are revolutionizing data evaluation and pattern recognition in supplier landscapes. Automated data collection and analysis enable real-time monitoring of market changes and supplier developments.

  • Automated data collection from various sources
  • Predictive analytics for market developments
  • AI-based risk assessment of suppliers

Sustainability and ESG criteria

Environmental, social and governance factors are becoming increasingly important in the evaluation of supplier landscapes. Companies are systematically integrating sustainability criteria into their analysis processes.

Globalization vs. regionalization

The trend towards diversification of supplier portfolios is leading to a more balanced consideration of global and regional suppliers. Supply chain resilience is becoming a central evaluation criterion in landscape analysis.

Conclusion

Supplier landscape analysis is an indispensable tool for strategic procurement decisions and forms the basis for successful product group management. Through systematic market analysis, it enables the identification of opportunities and risks as well as the development of targeted sourcing strategies. The continuous development of analysis methods through digitalization and AI integration significantly increases efficiency and informative value. Companies that carry out regular and well-founded supplier landscape analyses create sustainable competitive advantages in procurement management.

FAQ

What is the difference between supplier landscape analysis and supplier evaluation?

The supplier landscape analysis looks at the entire available market and identifies potential suppliers, while the supplier assessment evaluates specific, already known suppliers in detail. The landscape analysis is broader in scope and serves to open up the market.

How often should a supplier landscape analysis be updated?

The update frequency depends on the market dynamics. In fast-moving technology markets, annual updates are recommended, while two-year cycles may be sufficient in stable markets. However, continuous monitoring of important market changes is always necessary.

Which data sources are most important for the analysis?

Primary sources such as direct supplier contacts and RFI processes provide the most valuable information. Industry databases, trade fair visits and expert interviews are also important. The combination of different sources ensures a complete market picture.

How can the objectivity of the assessment be ensured?

Objectivity is promoted through standardized evaluation criteria, weighted scoring models and the involvement of several evaluators. Regular calibration of the evaluation criteria and external validation by market experts also increase the reliability of the results.

Supplier landscape analysis: definition & methods in Procurement

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