The purchasing agent conducts research to identify potential suppliers that can meet the organization’s needs. They explore various sources, such as industry directories, trade shows, and online platforms, to discover new and reliable suppliers.

They assess the available products and services in the market to identify the most suitable ones that align with the organization’s requirements. This analysis includes evaluating product features, specifications, quality, and pricing.

Market research helps the purchasing agent compare prices from different suppliers to ensure competitive pricing. They also analyze cost structures, including shipping and handling fees, to make informed decisions that maximize cost savings.

The purchasing agent assesses the performance and reputation of potential suppliers by reviewing their track record, customer feedback, and references. This evaluation helps in selecting reliable and reputable suppliers.

Market research aids in identifying potential risks associated with suppliers, products, or market fluctuations. By understanding potential risks, the purchasing agent can develop risk mitigation strategies.

They ensure that all suppliers comply with relevant regulations and industry standards. Market research helps in verifying the compliance of suppliers’ products and services.

The purchasing agent may also conduct competitor analysis to understand how competitors procure goods and services. This analysis helps in benchmarking and improving procurement strategies.

For expanding businesses or entering new markets, market research assists in understanding local market conditions, cultural considerations, and supplier capabilities.