Gap analysis is a systematic process of comparing the current state of an organization or project against a desired future state. It involves identifying gaps or discrepancies between the current performance or capabilities and the desired goals or benchmarks. A gap analysis helps organizations understand where they currently stand and what steps are needed to bridge the gap and reach the desired state.
It typically involves assessing factors such as skills, processes, resources, performance metrics, or compliance requirements. By identifying gaps, organizations can prioritize areas for improvement, develop action plans, allocate resources effectively, and track progress towards achieving their desired objectives.
In a procurement setting, the analysis can be used to assess the current and future business requirements against the current goods, services and capabilities available from the current supply base. The resulting gaps can then prioritized to close the most important gaps first.