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Stage 2 – Identify needs & analyse the market

This stage focuses on identifying the public policy or business needs that are to be met, and analysing the current market.

Identifying needs involves consulting with key stakeholders to develop a ‘statement of needs’. This is not the same as final specification of requirements, which is prepared after the results of the market research have been analysed.

The objective of market research and analysis is to develop a thorough understanding of the nature of the market, how it works and how this impacts upon your approach to the market and overall procurement strategy. It allows you to make informed decisions to get the best results. Thorough supply market analysis supports strategic thinking, informed decision making and adds value to the procurement process and outcomes.

Below are some specific guides, tools, templates and training relevant to this stage in the procurement lifecycle. These resources are not intended to be an exhaustive list. We recommend you read the Guide to Mastering Procurement [1 MB PDF], which covers this stage in detail, within the context of the end-to-end lifecycle.

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Last updated 8 January 2014