Market Research and Supplier Sourcing – Standard Operating Procedure
1) Purpose
To establish guidelines for conducting market research and sourcing suppliers to ensure the procurement of high-quality products and services at competitive prices within the pharmaceutical purchase department.
2) Scope
This SOP applies to all market research and supplier sourcing activities carried out by the procurement team.
3) Responsibilities
Procurement Manager: Responsible for overseeing market research and supplier sourcing activities.
Market Research Team: Responsible for conducting comprehensive market analysis and identifying potential suppliers.
Procurement Team: Responsible for evaluating and selecting suppliers based on research findings and established criteria.
4) Procedure
4.1) Market Research:
4.1.1) Identify the specific products or services required and the parameters for their quality, cost, and delivery timelines.
4.1.2) Conduct comprehensive market analysis to identify trends, pricing, and potential suppliers.
4.1.3) Use various sources such as industry reports, trade shows, online databases, and expert consultations.
4.2) Supplier Identification:
4.2.1) Create a list of potential suppliers identified through market research.
4.2.2) Verify the credentials, certifications, and reputations of potential suppliers.
4.3) Supplier Evaluation:
4.3.1) Develop evaluation criteria based on quality, cost, delivery performance, regulatory compliance, and sustainability.
4.3.2) Perform initial assessments of suppliers through questionnaires, site visits, and sample testing.
4.4) Request for Proposal (RFP) / Request for Quotation (RFQ):
4.4.1) Prepare and send RFPs/RFQs to shortlisted suppliers detailing the requirements and evaluation criteria.
4.4.2) Evaluate received proposals/quotations based on predefined criteria and select the most suitable suppliers.
4.5) Supplier Selection:
4.5.1) Conduct final negotiations with selected suppliers on pricing, terms, and conditions.
4.5.2) Finalize agreements and contracts with selected suppliers.
4.6) Monitoring and Review:
4.6.1) Continuously monitor the performance of selected suppliers against agreed criteria.
4.6.2) Conduct periodic reviews to reassess market conditions and supplier performance.
4.7) Documentation and Record Keeping:
4.7.1) Maintain detailed records of market research, supplier evaluations, and sourcing decisions.
4.7.2) Ensure documentation is complete, accurate, and readily available for audits and future reference.
5) Abbreviations, if any
- RFP: Request for Proposal
- RFQ: Request for Quotation
6) Documents, if any
- Market Research Reports
- Supplier Evaluation Criteria
- RFP/RFQ Documents
- Supplier Proposals/Quotations
- Contracts and Agreements
- Performance Review Reports
7) Reference, if any
Regulatory Guidelines: FDA CFR Part 11, ISO 9001:2015
Industry Standards: Best practices in strategic sourcing and procurement
8) SOP Version
Version 1.0