Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. It is one component of supply chain management.
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The Strategic Sourceror
The Strategic Sourceror blog was developed to deliver the latest news in procurement, strategic sourcing, and spend mangement as well as best practices and cost ...www.strategicsourceror.com/DI Live! IT Executive Insights: Strategic Sourcing
Views, clues and news on making the most from IT and wireless ... Related Blogs: (see Categories, top left) Sourcing Strategies for Telco IP Core Network ...www.diblog.com/strategic_sourcing/index.htmlE-Sourcing Forum
The source of information and best practices in strategic sourcing. ... Sourcing Blogs: Charles' Puchasing Certification Blog. Add comment May 1st, 2009 Erica ...www.esourcingforum.com/Global Sourcing Today
Strategic Sourcing and Commodity ... six sigma, six-sigma, strategic sourcing, supply chain ... most pressing concern regarding Global Strategic Sourcing? ...globalsourcingtalk.blogspot.com/The Strategic Sourceror: Sourcing Maniacs by the doc
The Strategic Sourceror blog was developed to deliver the latest news in procurement as well as best practices and cost cutting tips for strategic sourcing.www.strategicsourceror.com/2008/12/sourcing-maniacs-by-doc.h...Strategic sourcing is an institutional procurement process that continuously improves and re-evaluates the purchasing activities of a company. It is one component of supply chain management.
The steps in a strategic sourcing process are:
- Assessment of a company's current spend (what is bought where?)
- Assessment of the supply market (who offers what?)
- Total cost analyses (how much does it cost to provide those goods or services?)
- Identification of suitable suppliers
- Development of a sourcing strategy (where to buy what considering demand and supply situation, while minimizing risk and costs)
- Negotiation with suppliers (products, service levels, prices, geographical coverage, etc.)
- Implementation of new supply structure
- Track results and restart assessment (continuous cycle)
Strategic sourcing was initiated by General Motors in the 1980s. Strategic sourcing was later formalised into a methodology and implemented at other large scale blue chip companies with support of consulting companies like A. T. Kearney, PricewaterhouseCoopers, KPMG, and many others. This methodology become the norm for procurement departments and is today considered to be standard procurement working process.
Outsourcing is a method that can be employed as part of the overall sourcing strategy for services. This involves the transfer of staff and assets to an external or third-party company which then provides them back as a service.
Sourcing optimization
When applied to sourcing and supply chain operations, optimization helps the sourcing professional simultaneously evaluate thousands of different procurement inputs. This evaluation can take into consideration the global market, specific current supply chain conditions, and individual supplier conditions, and offers alternatives to address the buyer's supplier's sourcing goals.
References
See also
- Reverse auction
- Request for proposal
- Procurement
- Rate contract
- Global sourcing
- Tenders
























