What is strategic sourcing

Question

Accepted Answer

Strategic sourcing is a proactive approach to procurement that focuses on long-term value creation and supplier relationship management.

Strategic sourcing involves analyzing the organization's needs and identifying the best suppliers to meet those needs.
It aims to optimize costs, quality, and delivery by leveraging market intelligence and negotiating favorable contracts.
Strategic sourcing emphasizes long-term partnerships with suppliers to drive innovation and continuous improvement.
It involves evaluating supplier performance, managing risks, and ensuring compliance with regulations and ethical standards.
Examples of strategic sourcing practices include conducting supplier audits, implementing supplier development programs, and utilizing e-procurement tools.