Strategic Sourcing

Strategic Sourcing is a method of managing a company's procurement process. It involves continuously improving purchasing activities by reviewing and re-evaluating current activities against new purchasing opportunities in the market; a systematic approach to optimize value to the organization. Strategic sourcing, which is a key aspect of supply chain management, involves examining purchasing budgets, the landscape of the supply market, negotiation with suppliers and periodic assessments of supply transactions. The goal is to save money, improve acquisition, improve supplier performance and minimize risk.